Foreign Investment in Telecoms Hits 4-Year Low
Foreign capital imported into Nigeria’s telecommunications sector fell to a four-year low of $7.24m in the first quarter of 2026, despite the 50 per cent tariff increase approved for operators last year.
Data from the National Bureau of Statistics’ Capital Importation Report for the first quarter of 2026 showed that the sector attracted only $7.24m during the period, representing 0.07 per cent of the total $10.37bn capital imported into the country.
The latest inflow marked a sharp decline from the $80.78m recorded in the corresponding period of 2025 and was also significantly lower than the $103.36m attracted in the fourth quarter of last year.
Analysis of historical data showed that the Q1 2026 figure was the lowest quarterly inflow into the telecommunications sector since the fourth quarter of 2021, when the sector recorded no capital importation.
The development comes more than a year after the Nigerian Communications Commission approved a 50 per cent adjustment in telecom tariffs, a decision the regulator said was necessary to enable operators to cope with rising costs and sustain investment in network infrastructure.
The tariff increase took effect after operators repeatedly warned that soaring energy costs, foreign-exchange volatility, inflation, and rising expenses were threatening the industry’s sustainability.
Despite those expectations, the latest capital importation figures indicate that foreign investors remained cautious about the sector even as Nigeria recorded a strong increase in overall capital inflows.
The NBS report stated that total capital importation into Nigeria rose to $10.37bn in Q1 2026 from $5.64bn in the corresponding period of 2025, representing an increase of 83.83 per cent.
It stated, “In Q1 2026, total capital importation into Nigeria stood at $10.37bn, higher than $5.64bn recorded in Q1 2025, indicating an increase of 83.83 per cent. In comparison to the preceding quarter, capital importation increased by 60.97 per cent from $6.44bn in Q4 2025.”
The report showed that portfolio investment dominated inflows with $9.86bn, accounting for 95.09 per cent of total capital imported during the quarter, while foreign direct investment contributed only $135.08m.
Sectoral analysis revealed that the banking sector remained the biggest destination for foreign capital, attracting $7.55bn or 72.79 per cent of total inflows. The financing sector followed with $2.43bn, while manufacturing attracted $152.27m.
Telecommunications ranked far below these sectors, receiving less foreign capital than trading, agriculture, and information technology services.
The weak inflow also contrasts sharply with the sector’s performance in previous years. Telecommunications attracted $456.59m in 2024 and $496.27m in 2025, suggesting that investors had previously shown stronger interest in the industry.
Quarterly figures showed that the sector received $191.57m in the first quarter of 2024, $113.42m in the second quarter, $14.74m in the third quarter, and $136.86m in the fourth quarter. In 2025, inflows stood at $80.78m in the first quarter, $103.63m in the second quarter, $208.51m in the third quarter, and $103.36m in the fourth quarter.
The Nigerian Communications Commission earlier said mobile network operators and tower companies invested about N2.5tn in network infrastructure and upgrades in 2025 amid growing complaints by Nigerians over dropped calls, slow internet speeds, unstable data services, and network disruptions across parts of the country.
The regulator said the investments supported the addition and upgrade of more than 2,800 telecommunications sites nationwide, helping to address coverage and capacity gaps in several locations.
The commission acknowledged growing public concerns about poor telecom service delivery, noting that consumers had continued to experience frustration due to service instability and poor network performance.