The Nigerian telecom sector has experienced a notable surge in Foreign Direct Investments (FDI), drawing $304 million in the first half of 2024, according to data from the National Bureau of Statistics (NBS).
This marks a significant improvement over the total $134.75 million recorded for the entire year of 2023. After years of consistent decline in investment, despite a significant infrastructure deficit, this year’s inflow signals a potential recovery in the sector.
The first quarter of 2024 saw an impressive capital inflow of $191.5 million, representing a staggering 769 per cent increase compared to the $22.05 million received in the same period in 2023. In the second quarter of 2024, the sector attracted $113.4 million.
While this was lower than the Q1 inflow, it still marked a 339 per cent increase over the $25.81 million recorded in Q2 2023. Data from the Nigerian Communications Commission (NCC) paints a picture of fluctuating investment trends. In 2022, total FDI inflows to the telecom industry reached $399.9 million, a 47 per cent decline from the $753 million recorded in 2021.
