Investments in Nigeria’s telecommunications sector in 2023 declined by a whopping $322m to $134m from $456.8m in the corresponding year, fresh Nigerian Capital Importation 2023 data recently released by the National Bureau of Statistics (NBS) has shown.
Quarter by quarter, the report further showed that throughout the year in review, capital inflow within Nigeria’s telecom sector maintained a downward spiral.
For example, 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.
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.
On a larger scale, 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.
