Telcos Contest NBS’ Foreign Investment Data Showing 91% Drop in Capital Inflows

Telecommunications operators have faulted the National Bureau of Statistics (NBS) report indicating that the sector attracted only $7.24 million in foreign capital in the first quarter of 2026, arguing that the figure does not reflect the actual level of investment flowing into Nigeria’s telecom industry.

The NBS revealed in its Capital Importation Report that the telecom sector posted one of the weakest foreign investment performances in the country for the period, drawing just $7.24 million or 0.07 per cent of the $10.37 billion total capital imported into Nigeria that quarter.

Hence, that amount marked a 91% drop from the $80.78 million recorded in the same quarter of 2025.

Industry stakeholders, however, insist that the NBS statistics do not capture several categories of investments being made by operators, particularly infrastructure financing, vendor-backed investments and capital expenditure funded through offshore arrangements.

The controversy follows a 50 per cent tariff adjustment approved by the Nigerian Communications Commission (NCC) in January 2025, which government officials and industry players had argued would boost operators’ cash flows and stimulate new investment in network infrastructure.

According to the NBS report, total capital importation into Nigeria surged 83.8 per cent year-on-year to $10.37 billion in the first quarter of 2026. Yet the telecom sector attracted just $7.24 million, making it one of the least-funded sectors during that period. In comparison, the banking sector alone drew $7.55 billion, while financing received $2.43 billion.

Operators alluded that using capital importation figures alone may present an incomplete picture of investments in the industry, especially at a time when telecom companies continue to contend with rising energy costs, foreign exchange pressures, infrastructure vandalism and increasing demand for data services.

The development raises fresh questions about whether the tariff increase approved last year has translated into stronger investor confidence in the sector or whether broader macroeconomic concerns continue to discourage foreign capital inflows.

Experts highlighted that the decline is especially notable given that telecom remains a vital driver of Nigeria’s digital economy. The sector was widely expected to gain from reforms designed to enhance operators’ financial health and support network expansion.

According to NBS data, the $7.24 million inflow into the telecom sector in the first quarter of 2026 marked its lowest quarterly level in over four years, highlighting concerns about the industry’s ability to draw long-term foreign capital even after recent regulatory measures.

Consequently, as the operators now challenging the statistics, attention is likely to shift to how investment flows into the sector are measured and whether existing reporting frameworks adequately capture the full range of financing arrangements supporting Nigeria’s telecommunications infrastructure.