Foreign Capital in Nigeria's Telecoms Hits Four-Year Low

In the first quarter of 2026, foreign capital inflow into Nigeria's telecommunications sector dropped to $7.24 million, the lowest quarterly figure since Q4 2021. This decline occurred despite the Nigerian Communications Commission approving a 50% tariff increase to help operators manage rising costs.

The total capital import for Nigeria in Q1 2026 was $10.37 billion, an increase of 83.83% from $5.64 billion in the same period in 2025. The telecommunications sector's inflow represented only 0.07% of the total capital import, significantly lower than the $80.78 million recorded in Q1 2025 and $103.36 million in Q4 2025.

The analysis indicates that foreign investors remain cautious in the telecommunications sector, contrasting sharply with previous years when the sector attracted $456.59 million in 2024 and $496.27 million in 2025. The Nigerian Communications Commission has also mobilized network operators to invest N2.5 trillion in network infrastructure upgrades by 2025 to address ongoing service delivery issues.