Foreign direct investment (FDI) in Nigeria’s telecommunications sector dropped significantly in the first quarter of 2025, recording $80.78 million—a 58% decline compared to the $191.57 million attracted in the same period in 2024. This is according to fresh capital importation data released by the National Bureau of Statistics (NBS).
Despite a general improvement in overall capital importation into Nigeria during the quarter, the telecom sector’s numbers tell a different story. On a quarter-on-quarter basis, the Q1 2025 figure also reflects a 41% dip from the $136.86 million posted in Q4 2024.
Industry stakeholders attribute the decline to persistent structural challenges. The Association of Licensed Telecommunications Operators of Nigeria (ALTON) pointed to multiple taxation and high Right of Way (RoW) charges as key deterrents. “We may not see steady investment growth until the industry challenges are addressed,” ALTON said in a statement.
Engr. Ikechukwu Nnamani, CEO of Digital Reality and former president of the Association of Telecommunications Companies of Nigeria (ATCON), stressed the importance of a stable and consistent policy environment to attract investment. He also noted that volatility in Nigeria’s foreign exchange market had been a significant red flag for foreign investors. However, he expressed cautious optimism, suggesting that the recent signs of forex stability could encourage a rebound in telecom investment in the coming quarters.
