Nigeria Telecom Sector Attracts $304m FDI Investments in the First Half of 2024

The Nigerian telecom sector has seen an improvement in foreign direct investments this year as it attracted a total of $304 million in the first six months of this year.

This figure more than doubled the $134.75 million the sector attracted throughout the whole of 2023.

Nigeria Telecom Sector Growth In H1 2024

According to data from the National Bureau of Statistics (NBS), this represents a promising recovery following years of declining investment in the sector, despite a critical infrastructure gap requiring billions of dollars to bridge.

The NBS data showed that the sector attracted a $191.5 million capital inflow in the first quarter of this year, marking a substantial 769% increase compared with $22.05 million received in Q1 2023.

The data further revealed that, in Q2 2024, FDIs in the sector stood at $113.4 million, lower than the inflow recorded in the preceding quarter, but represents a significant 339% increase over the $25.81 capital inflow recorded in the same period last year.

Stakeholders Not Excited By The Growth Feat

However, stakeholders in the telecom sector are not excited by the development yet. According to them, a lot still needs to be done by the government on the policy front to sustain the current trend and reverse the losses of the past years.

Also Read: NCC Suggests Partnerships to Cut Telecom Costs in Nigeria

Stakeholders Speak

Specifically, Mr.Wale Babalola, a consultant in the telecoms market, reported investments in the first six months of the year are still quite insignificant to drive the growth sector currently needs.

“Yes, it’s good that the Nigerian telecom sector is doing better than last year and to an extent, the last two years, but that is not enough to bridge the existing infrastructure in the sector.”

He also added that investors are waiting for clearer policy directions from the government, particularly on tariff regulations.

“Besides, many investors are still watching to see how the government will handle several policy issues still hanging. One of which is tariff regulation. Any country that wants to attract investors should be able to assure returns on investments.” 

Also, Gbolahan Awonuga, the Executive Secretary of the Association of Licensed Telecommunications Companies of Nigeria (ALTON), the issue of forex instability is still a major problem that needs to be addressed to encourage more investments in the telecom sector.

He said, “Whatever we are seeing now may be a flash in the pan until the industry challenges are addressed. Issues of Right of Way charges are still there, likewise multiple taxation and above all the forex instability that continues to affect the operators’ ability to import equipment.”

Finally, the recent boost in FDI is coming after years of consistent decline in investments even with a widening infrastructure gap requiring billions of dollars in investments to bridge.

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