Foreign investments in Nigeria’s telecommunications sector fell sharply to $14.4 million in the third quarter of 2024, marking an 87% decline from $113.42 million in the previous quarter, according to the National Bureau of Statistics (NBS). This decline also represents a 77% drop compared to the same period last year, when the sector attracted $64.05 million.

The sharp reduction follows a mixed performance earlier in 2024, with the sector seeing a significant increase in foreign investments during the first two quarters of the year. In Q1 2024, investments surged by 769% to $191.5 million, surpassing the total foreign capital imported into the sector for all of 2023. However, the Q3 figures signal a concerning trend for the industry, which is battling infrastructure deficits, high operating costs, and ongoing policy uncertainties.

Telecom operators have raised alarms over the rising cost of operations, exacerbated by inflation and foreign exchange challenges. Industry bodies, including the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON), have called on the government to implement measures such as tariff adjustments to support the sector’s sustainability.

ALTON Chairman, Gbenga Adebayo, warned that many telecom providers can no longer absorb the high costs, with some service providers unable to sustain operations at current pricing levels. The sector’s contribution to Nigeria’s GDP and its role in providing essential services to millions of Nigerians make its financial health a critical issue for the country’s economy.