NBS reports $322 million decline in telecom investments.
Investments in Nigeria’s telecommunications sector decreased to $134m in 2023 from $456.8m in the corresponding year, a decline of $322m.
This is according to the Nigerian Capital Importation 2023, which was released by the National Bureau of Statistics.
The decline represents a decrease of approximately 70.5 per cent.
A further examination of the quarterly NBS Capital Importation data showed a consistent downward trend in capital inflow within Nigeria’s telecom sector throughout 2023.
In the first quarter of the year, foreign investments in the sector amounted to $22.05m, a decrease from the $57.79m recorded in the same period of 2022, according to the NBS.
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Similarly, the fourth quarter of 2023 witnessed a substantial decline, with capital importation into the telecom industry totalling $22.84m, significantly lower than the $168.27m reported during the corresponding period in 2022.
According to experts, depleting investments in the sector would pose challenges for telecom companies to maintain or enhance the quality of their services.
Foreign inflow into the Nigerian economy slumped by about 27 per cent between 2022 and 2023.
Nigeria attracted a total of $3.91bn in 2023. The amount translates to a 26.7 per cent year-on-year decline from $5.33bn in 2022, and marks the lowest inflow since 2007, according to Investment banking firm Cowry Asset Limited.
The decline in foreign investment inflows is attributed to factors such as political risks, elevated production costs, and uncertainty surrounding government policies, especially regarding foreign exchange availability.
