The nation’s digital goals are currently 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 just $80.78 million in Q1 2025.
This alarming decline contrasts with the national trend, where total capital importation rose to $5.6 billion. More concerningly, it marks a steep 41 per cent drop from the $136.86 million secured in the previous quarter (Q4 2024), signalling rapidly deteriorating investor confidence in a sector fundamental to national development, financial inclusion, and productivity.
Meanwhile, Industry leaders and analysts point squarely to persistent leadership and policy failures as the core drivers of this capital flight. Despite repeated warnings and advocacy, structural and regulatory hurdles, including rampant infrastructure vandalism, crippling insecurity, suffocating multiple taxation, and exorbitant Right of Way (RoW) charges that remain largely unaddressed.
Analysts have opined that the Q1 figures are a stark indictment of our inability to resolve known, sector-specific barriers.
“While the broader economy attracts investment, the telecom sector, which enables virtually all other sectors, is being choked by policy inertia and a hostile operating environment, ” analysts said.
The experts expressed grave concern, emphasising the direct link between unresolved challenges and dwindling investment. Issues of right-of-way charges amidst multiple taxation have continued to discourage investors, which may hamper the steady growth in telecom investments.
While Investors are voting with their capital, stakeholders express their concerns over sustained growth or significant new investment for 4G/5G expansion and infrastructure security until decisive government action tackles the root causes, which are uncoordinated taxation, prohibitive RoW, and the existential threat of vandalism and insecurity faced by the telecom players.
According to experts, the collapse in telecom FDI raises urgent questions about Nigeria’s ability to meet its ambitious digital transformation goals.
Hence, experts stressed that, Nigeria’s digital ambitions hinge on robust telecom infrastructure, as this investment crash is a five-alarm fire which demands immediate, coordinated action from the highest levels of government with calls for the federal, state, and local authorities to harmonise regulations, guarantee infrastructure security, and create a genuinely attractive investment climate.
Meanwhile, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) echoed this grave concern, emphasising the direct link between unresolved challenges and dwindling investment.
Alton said: “We may not see a steady growth in investments until the industry challenges are addressed. Issues of Right of Way charges are still there, likewise multiple taxation, which continue to discourage investors”
While investors are voting with their capital. stakeholders express their concerns over sustained growth or significant new investment for 4G/5G expansion and infrastructure security until decisive government action tackles the root causes which are uncoordinated taxation, prohibitive RoW, and the existential threat of vandalism and insecurity faced by the telecom players.
