Nigeria’s telecommunications sector attracted a total of $191.5 million in Foreign Direct Investments (FDIs) in the first quarter of 2024, the National Bureau of Statistics (NBS) has disclosed.
The Q1 2024 figure surpassed the total FDI the sector recorded in 2023, which stood at $134.75, according to the NBS data.
Year on year, capital importation received by the sector in Q1 2024 represents a 769 per cent increase compared with $22.05 million received in Q1 2023.
Similarly, compared with the $22.84 million received in the preceding quarter, Q4, 2023, this also represents a 738 per cent growth in investments.
Meanwhile, critical stakeholders in the ICT sector have said that more investment is needed to deepen broadband penetration.
For instance, the Nigerian telecom industry would require, at least, $3.4 billion in investments in fibre infrastructure to meet the 70 per cent broadband target.
However, the federal government has established a Special Purpose Vehicle (SPV) for the delivery of an extra 90,000km of fiber optic cable to supplement existing connection for universal internet access throughout Nigeria.
According to the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, the SPV would build the additional fiber optic coverage needed to increase Nigeria’s connectivity backbone from its current coverage of roughly 35,000km to a minimum of 125,000km.
“Building on our existing work with the Broadband Alliance, this increased connectivity will help plug the current non-consumption gap by connecting over 200,000 educational, healthcare and social institutions across Nigeria, ensuring that a larger section of our society can be included in the benefits of internet connectivity,” the Minister said.
He continued by saying that the project would lower internet connection costs by more than 60 per cent and assist Nigeria reach a rate of over 70 per cent internet penetration.
Tijani claimed that with the project, Nigeria would include at least half of the 33 million people who are not able to access the internet. It is also expected to deliver up to 1.5 per cent GDP growth per capita, resulting in a GDP increase from $472.6 billion in 2022 to $502 billion in the next four years.
