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Telcos Dispute NBS Report on Telecom FDI Decline
Telecommunications operators in Nigeria have faulted the latest Capital Importation Report released by the National Bureau of Statistics (NBS), which indicated a 91 per cent drop in foreign direct investment (FDI) into the telecoms sector in the first quarter of 2026.
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Operating under the umbrella of the Association of Licensed Telecom Operators of Nigeria (ALTON), the operators argued that the report fails to reflect the true scale of investment in the industry, particularly domestic capital reinvestment and alternative financing structures.
₦2.13 Trillion Spent in 2025, ₦1.86 Trillion Planned for 2026
ALTON disclosed that telecom operators collectively invested ₦2.13 trillion in 2025 on network upgrades, expansion, and infrastructure resilience. The association further revealed plans to deploy an additional ₦1.86 trillion in 2026, underscoring sustained capital commitment to Nigeria’s communications infrastructure.
Reacting to the NBS data in Lagos, the association stressed that capital importation statistics alone do not capture vendor-financed projects, offshore-backed investments, or reinvested revenues, which now constitute a significant portion of telecom funding.
Industry Flags Measurement Gap in Capital Reporting
According to ALTON, the discrepancy between reported foreign inflows and actual infrastructure deployment highlights a structural gap in how sectoral investment is currently measured.
“This disparity between reported foreign capital inflows and actual infrastructure investment highlights a gap in how sectoral capital deployment is currently measured and reported,” the association stated.
NBS Figures Show Sharp FDI Drop
The NBS Capital Importation Report showed that telecom FDI fell to $7.24 million in Q1 2026, down from $80.78 million in the same quarter of 2025—a decline of over 91 per cent.
While total capital importation into Nigeria surged 83.8 per cent year-on-year to $10.37 billion, the telecom sector ranked among the least-funded. By contrast:
- The banking sector attracted $7.55 billion
- Financing activities received $2.43 billion
Why Telcos Say the Data Is Incomplete
Industry stakeholders insist the NBS methodology excludes several major investment categories, including:
- Infrastructure financed through vendor credit arrangements
- Offshore-funded capital expenditure
- Long-term reinvestment of operational revenues
They argue that these mechanisms now dominate telecom infrastructure financing, especially amid foreign exchange volatility and rising operational costs.
Tariff Adjustment and Investment Expectations
The controversy follows a 50 per cent tariff adjustment approved in January 2025 by the Nigerian Communications Commission (NCC), a move policymakers and operators said would restore sector viability and unlock new investment.
While operators say the reform has improved cash flow and enabled large-scale reinvestment, the weak FDI numbers have raised questions about whether broader macroeconomic risks—such as energy costs, FX pressures, and infrastructure vandalism—continue to deter foreign investors.
Telecoms Remain Central to Nigeria’s Digital Economy
Experts note that the FDI decline is striking given telecoms’ strategic role in powering Nigeria’s digital economy, broadband expansion, fintech growth, and data-driven services.
NBS data shows the $7.24 million recorded in Q1 2026 is the sector’s lowest quarterly FDI inflow in more than four years, intensifying concerns about long-term foreign investor confidence despite recent regulatory reforms.
Focus Shifts to Investment Measurement Frameworks
As operators continue to challenge the NBS figures, attention is shifting to whether Nigeria’s current capital reporting frameworks adequately capture the full spectrum of financing models supporting telecom infrastructure.
Industry leaders say a broader measurement approach is needed to reflect the realities of capital deployment in a sector critical to national connectivity, digital inclusion, and economic growth.
