In the first six months of 2023, total capital importation into the telecoms sector was $47.86m, a huge fall when compared to the $211.29m that the sector attracted in first half of 2022.

Also, 2023 first half figures represent a four year low since the sector rebounded from $36.85m recorded in the first half of 2019.

Data from the National Bureau of Statistics showed a sustained slowdown of foreign investments into the country with total capital importation falling by 30.42 per cent to $2.16bn in the period under review from $3.11bn in the preceding period.

Commenting on the decline in Q2, 2023, the NBS said, “In Q2 2023, total capital importation into Nigeria stood at US$1,030.21 million, lower than US$1,535.35 million recorded in Q2 2022, indicating a decrease of 32.90 per cent. When compared to the preceding quarter, capital importation fell by 9.04 per cent from $1.13bn in Q1 2023.”

Growth in foreign investment in the telecoms sector has been hampered by insecurity challenges, geographical problems, and more.

Recently, the immediate past Executive Vice Chairman of the Nigerian Communications Commission, Prof. Umar Danbatta, lamented that insecurity challenge was impacting long-term planning and investment in the sector.

When it was rolled out, 5G was predicted to headline network investment and drive foreign investment into the sector. However, this has not been the case.

According to GSMA, telcos would need to invest about $500m to build 6,000 base stations to roll out 5G in the top 10 cities in the country. Recently, Danbatta, disclosed that 5G subscriptions grew to 500,000.