The National Bureau of Statistics (NBS) has said that foreign investments in Nigeria’s telecommunications industry dropped by 87 per cent in the third quarter of 2024.
The NBS in its report said it suffered a huge decline from the $113.42m recorded in the second quarter of 2024 after falling to a new low of $14.4m in the third, dropping by $99.02m.
“In this context, capital importation refers to the inflow of foreign funds or investments into Nigeria’s telecommunications sector. It includes all forms of capital brought into the country by foreign entities for the purpose of business investment,” the NBS said.
The bureau in the report released last Friday said in its capital importation that the figure showed a 77 per cent year-on-year decline compared with the $64.05m achieved in the same period of 2023.
According to the NBS, the decline signaled a significant downtrend for the sector, which has been battling with infrastructure deficits and high operating costs despite its growth potential.
“In the first quarter of 2024, capital importation reached $191.5m, representing a 769 per cent increase from $22.05m in Q1 2023,” the report added.
“This figure exceeded the total foreign investments for the entirety of 2023, which stood at $134.75m.”
The NBS stated that in Q2 2024, the sector saw a $113.42m inflow—a 339 per cent increase compared with the $25.81m recorded in Q2 2023.
It added that the third-quarter decline comes amid persistent issues affecting the telecoms sector, including foreign exchange challenges, policy uncertainties, and an urgent need for infrastructure development.
“The sector grapples with high operating costs fueled by a rising inflation rate, even as it remains vital to Nigeria’s economy, contributing significantly to GDP and providing essential services to millions of Nigerians,” the NBS said.
(Guardian)
