Drop In Telecom’s FDI To $80.78m Threatens Nigeria’s Digital Goals

The nation’s digital targets are at the moment threatened. The National Bureau of Statistics (NBS) Capital Importation Report revealed that the telecommunications sector’s capital importation  plummeted by a whopping 58 per cent year-on-year to simply $80.78 million in Q1 2025.

This alarming decline contrasts with the nationwide pattern, the place whole capital importation rose to $5.6 billion. Extra concerningly, it marks a steep 41 per cent drop from the $136.86 million secured within the earlier quarter (This autumn 2024), signalling quickly deteriorating investor confidence in a sector elementary to nationwide improvement, monetary inclusion, and productiveness.

In the meantime, Trade leaders and analysts level squarely to persistent management and coverage failures because the core drivers of this capital flight. Regardless of repeated warnings and advocacy, structural and regulatory hurdles, together with rampant infrastructure vandalism, crippling insecurity, suffocating a number of taxation, and exorbitant Proper of Manner (RoW) fees that stay largely unaddressed.

Analysts have opined that the Q1 figures are a stark indictment of our lack of ability to resolve identified, sector-specific obstacles.

“Whereas the broader economic system attracts funding, the telecom sector, which permits just about all different sectors, is being choked by coverage inertia and a hostile working setting, ” analysts mentioned.

The consultants expressed grave concern, emphasising the direct hyperlink between unresolved challenges and dwindling funding. Problems with right-of-way fees amidst a number of taxation have continued to discourage buyers, which can hamper the regular progress in telecom investments.

Whereas Buyers are voting with their capital, stakeholders categorical their issues over sustained progress or important new funding for 4G/5G growth and infrastructure safety till decisive authorities motion tackles the basis causes, that are uncoordinated taxation, prohibitive RoW, and the existential risk of vandalism and insecurity confronted by the telecom gamers.

In response to consultants, the collapse in telecom FDI raises pressing questions on Nigeria’s potential to fulfill its formidable digital transformation targets.

Therefore, consultants careworn that, Nigeria’s digital ambitions hinge on sturdy telecom infrastructure, as this funding crash is a five-alarm hearth which calls for speedy, coordinated motion from the very best ranges of presidency with requires the federal, state, and native authorities to harmonise laws, assure infrastructure safety, and create a genuinely enticing funding local weather.

In the meantime, the Affiliation of Licensed Telecommunications Operators of Nigeria (ALTON) echoed this grave concern, emphasising the direct hyperlink between unresolved challenges and dwindling funding.

Alton mentioned: “We could not see a gradual progress in investments till the trade challenges are addressed. Problems with Proper of Manner fees are nonetheless there, likewise a number of taxation, which proceed to discourage buyers”

Whereas buyers are voting with their capital. stakeholders categorical their issues over sustained progress or important new funding for 4G/5G growth and infrastructure safety till decisive authorities motion tackles the basis causes that are uncoordinated taxation, prohibitive RoW, and the existential risk of vandalism and insecurity confronted by the telecom gamers.