Foreign direct investment into Nigeria’s telecommunications sector fell to $80.78 million in Q1 2025, marking a 58% year-on-year decline.
This is according to the latest capital importation report by the National Bureau of Statistics.
The sector had attracted $191.57 million in Q1 2024, making the current figure a significant drop despite an overall increase in capital importation during the same period.
Quarter-on-quarter, capital importation into Nigeria’s telecom sector dropped by 41% in Q1 2025, falling from $136.86 million in Q4 2024.
The Association of Licensed Telecommunications Companies of Nigeria attributed the decline to persistent challenges such as multiple taxation and the high cost of Right of Way, stressing that these issues must be resolved to attract more investment into the sector.
“We may not see a steady growth in investments until the industry challenges are addressed. Issues of Right of Way charges are still there, likewise multiple taxation,” ALTON said in a recent statement.
The CEO of Digital Reality and immediate past President of the Association of Telecommunications Companies of Nigeria, Engr. Ikechukwu Nnamani, expressed hope that the government would boost the sector’s attractiveness by ensuring a conducive and stable business environment.
He noted that policy consistency is key to creating such stability. Nnamani also highlighted that the volatility of Nigeria’s forex market has discouraged many foreign investors from committing to the telecom sector.
However, he expressed optimism that the recent relative stability in the forex market could lead to improved investment inflows in the coming quarters.
Despite the telecom sector’s decline, the NBS reported that total capital importation into Nigeria rose to $5.6 billion in Q1 2025 — a 67.12% increase from $3.4 billion in Q1 2024.
“The Banking sector recorded the highest inflow with US$3127.92 million, representing 55.44% of total capital imported in Q1 2025, followed by the Financing sector, valued at US$2097.48million (37.18%), and Production/Manufacturing sector with US$129.92 million (2.30%).” The NBS stated in the capital importation report.
