Nigeria’s telecommunications sector attracted just $7.24 million in foreign capital in the first quarter of 2026, marking its lowest quarterly inflow in more than four years despite a 50 per cent tariff increase approved to strengthen operator finances and stimulate investment.
Data from the National Bureau of Statistics (NBS) showed that foreign capital inflows into the sector accounted for only 0.07 per cent of the total $10.37 billion imported into Nigeria during the period.
The figure represents a sharp 91.04 per cent decline from the $80.78 million recorded in the first quarter of 2025 and a 92.99 per cent drop from the $103.36 million attracted in the previous quarter.
The latest performance is the weakest since the fourth quarter of 2021, when the sector recorded no foreign capital inflow, making it the lowest level seen in 17 quarters.
The development comes despite expectations that the tariff adjustment approved by the Nigerian Communications Commission (NCC) in January 2025 would improve investor confidence and help operators cope with mounting operational costs driven by foreign exchange volatility, rising energy prices, and infrastructure expenses.
The steep decline contrasts sharply with the sector’s performance in recent years. Telecommunications attracted $496.27 million in foreign investment in 2025, $456.59 million in 2024, $134.75 million in 2023, and $456.83 million in 2022.
Industry stakeholders had argued that higher tariffs would improve operators’ cash flows, enable network expansion, and attract fresh capital into the sector.
Following the tariff increase, the NCC disclosed that telecom operators invested more than $1 billion in infrastructure upgrades and over N2.5 trillion in network expansion projects in 2025 as part of efforts to improve service quality nationwide.
However, the latest figures suggest that foreign investors remain cautious about the sector despite the improved revenue outlook.
Ironically, the weak performance of telecommunications came amid a broader surge in foreign capital entering Nigeria.
According to the NBS report, total capital importation rose to $10.37 billion in the first quarter of 2026, representing an 83.8 per cent increase from the $5.64 billion recorded in the corresponding period of 2025. On a quarter-on-quarter basis, inflows increased by 61 per cent from $6.44 billion in the fourth quarter of 2025.
The growth was driven largely by investments in money market instruments and fixed-income securities.
The banking sector emerged as the biggest beneficiary, attracting $7.55 billion, or 72.8 per cent of total capital inflows. The financing sector followed with $2.43 billion, accounting for 23.4 per cent.
Together, both sectors attracted more than 96 per cent of all foreign capital imported into the country during the quarter.
Other sectors outperformed telecommunications, with manufacturing receiving $152.27 million, while investments in shares attracted $75.34 million. Telecoms also trailed sectors such as agriculture, information technology services, and trading.
