Foreign capital flowing into Nigeria’s telecommunications sector plunged to $7.24 million in the first quarter of 2026, marking a four-year low. This sharp decline occurred despite a 50 per cent tariff increase approved for operators in January 2025, intended to support investment and network expansion.
Data from the National Bureau of Statistics (NBS) reveals the weakest quarterly inflow into the telecom sector since Q4 2021, when no capital importation was recorded. This represents the lowest level in 17 quarters.
The weak performance contrasts with expectations that the tariff adjustment would improve the investment climate for operators grappling with rising energy, foreign exchange, and infrastructure costs.
The NBS report showed that capital importation into the telecom sector represented only 0.07% of the $10.37 billion total inflows recorded during Q1 2026. This figure marks a significant 91.04% year-on-year decline from the $80.78 million recorded in Q1 2025.
Furthermore, inflows dropped by 92.99% from the $103.36 million recorded in the preceding quarter (Q4 2025). The decline is stark when compared to previous years, with telecoms attracting $496.27 million in 2025, $456.59 million in 2024, $134.75 million in 2023, and $456.83 million in 2022.
While telecoms experienced a sharp downturn, overall capital importation into Nigeria surged during the quarter. The country attracted $10.37 billion in capital importation in Q1 2026, an 83.8% increase compared to the $5.64 billion recorded in Q1 2025. Inflows also rose by 61% quarter-on-quarter from $6.44 billion in Q4 2025.
This surge was concentrated in a few sectors. The banking industry remained the primary destination, attracting $7.55 billion, which constituted 72.8% of total capital imported. The financing sector followed with $2.43 billion (23.4%). Together, these two sectors accounted for over 96% of all inflows.
In contrast, the telecommunications sector attracted less foreign capital than trading, agriculture, IT services, and shares. Industry players had previously argued that higher tariffs would strengthen cash flows, support network upgrades, and encourage fresh investment into the sector.
