The News Chronicle understands that with investments dropping by over half in the first quarter of 2025, Nigeria’s telecommunications industry is struggling to draw in foreign capital.
Based on the most recent National Bureau of Statistics (NBS) data, foreign direct investment (FDI) into the telecom sector totaled just $80.78 million during Q1 2025, which represents a remarkable 58 percent drop from the $191.57 million registered in the same quarter of 2024.
TNC study reveals a 41 percent decline from Q4 2024, when the industry pulled $136.86 million, as well. Given the general increase in total capital inflows into the Nigerian economy over the same period, the drop is especially alarming.
Telecom companies and stakeholders keep pointing out major obstacles obstructing investor confidence. The Association of Licensed Telecommunications Operators of Nigeria (ALTON) flags exorbitant Right of Way (RoW) charges and the burden of several taxes as significant impediments. “Until these industry obstacles are properly handled, consistent growth in investments could be difficult to obtain,” ALTON said.
Speaking to TNC, Engr. Ikechukwu Nnamani, CEO of Digital Reality and former President of the Association of Telecommunications Companies of Nigeria (ATCON), emphasized the need for policy consistency and financial stability. He claims that many overseas investors have slowed down because Nigeria’s forex market has always been turbulent.He did, however, have guarded hope that the recent stability of the exchange rate could rekindle interest in following quarters.
Interestingly, even as the telecoms sector faltered, Nigeria’s total capital inflow skyrocketed. Reaching $5.6 billion in Q1 2025 against $3.4 billion in Q1 2024, the NBS report revealed a 67.12 percent increase in total capital brought into the country.
The banking industry, which made up more than half of all inflows, propelled this expansion mostly. Alone, the industry drew $3.13 billion, around 55.44 percent of the total capital import. Analysts contend that this increase is exactly linked to the recapitalization program of the Central Bank of Nigeria, which has forced banks to look for fresh sources of funds both locally and abroad.
Meanwhile, the finance and manufacturing industries followed with $2.1 billion and $129.9 million, therefore showing a change in investor interest away from telecoms toward regions thought to be more stable or with better growth potential.
