NBS reports 61% drop in telecom investments
Telecommunications sector investments dwindled to $111.91m in the first three quarters of 2023, marking a substantial 61.22% drop from the $288.55m recorded during the same period in 2022, as reported by the National Bureau of Statistics.
This decline aligns with a broader trend of reduced foreign investments in Nigeria, witnessing a 33.99% decrease to $2.82bn in the reviewed period compared to $4.27bn in 2022.
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The NBS disclosed that Q3 2023 saw total capital importation into Nigeria at $654.65m, down by 43.55% from Q3 2022. Other Investment led with 77.56% ($507.77m), followed by portfolio investment at 13.31% ($87.11m), and foreign direct investment at 9.13% ($59.77m).
Despite increased 4G and 5G network expansion, foreign investments in the telecoms sector are on a consecutive downward trend. MTN Nigeria, facing forex challenges, maintained network development, with a 6.9% rise in Capex to N405bn.
The company secured a $125m trade facility with Access Bank UK and raised N125bn through commercial paper to bolster Capex deployment.
This dip in foreign investments is poised to continue for the second consecutive year, following a 46.89% fall to $399.91m in 2022 from $753.05m in the previous year.
Industry experts attribute this decline to forex scarcity impacting equipment imports and the cumbersome process of obtaining end-user certificates from security agencies.
