Foreign capital in telecoms falls to four-year low

Foreign capital flowing into Nigeria's telecommunications sector has hit a four-year low of $7.24 million in the first quarter of 2026. This sharp decline occurred despite a 50% tariff increase implemented last year for operators, a move intended to help them manage rising costs and sustain network infrastructure investments.

The National Bureau of Statistics' Capital Importation Report revealed that the telecommunications sector attracted only 0.07% of the total $10.37 billion capital imported into Nigeria during the period. This figure represents a significant drop from $80.78 million in the first quarter of 2025 and $103.36 million in the last quarter of 2025. Historical data shows this is the lowest quarterly inflow since the fourth quarter of 2021.

Despite the telecom sector's struggles, overall capital importation into Nigeria saw a substantial increase of 83.83%, rising to $10.37 billion from $5.64 billion in the first quarter of 2025. Portfolio investment dominated these inflows, accounting for 95.09% of the total. The banking sector was the primary recipient, attracting $7.55 billion, followed by the financing sector with $2.43 billion.

The telecommunications sector attracted less foreign capital than trading, agriculture, and information technology services. This weak inflow contrasts sharply with its performance in previous years, when it attracted $456.59 million in 2024 and $496.27 million in 2023, underscoring a concerning trend for foreign investment in the nation's digital infrastructure.