Nigeria’s telecom industry saw foreign direct investment drop by 58 per cent in the first quarter of 2025, even as overall capital inflows into the country surged.
According to the National Bureau of Statistics (NBS), the telecom sector attracted only $80.78 million in Q1 2025, down from $191.57 million during the same period last year. This also represents a 41 per cent decline compared to Q4 2024.
Industry players cite chronic challenges such as multiple taxation and high Right of Way (RoW) costs as key deterrents.
“We may not see consistent investment until these hurdles are addressed,” said the Association of Licensed Telecommunications Operators of Nigeria (ALTON) in a statement.
Engr. Ikechukwu Nnamani, former president of the Association of Telecommunications Companies of Nigeria (ATCON), said policy inconsistency and forex volatility are pushing foreign investors away.
“The instability in the FX market has made it difficult to repatriate profits or plan long-term investments,” he said. Still, Nnamani expressed optimism that recent exchange rate stability could attract renewed interest in coming quarters.
The capital importation data shows the banking and financing sectors captured the lion’s share of inflows in Q1, with banking alone accounting for 55.4 per cent of the total.
The decline in telecom FDI, however, underscores the need for sector-specific reforms to attract long-term capital critical for digital transformation.
