Nigeria’s telecommunications sector recorded a sharp decline in foreign investments in the first quarter of 2026, with inflows dropping by 91 percent despite the tariff increase approved for operators last year.
According to data released by the National Bureau of Statistics (NBS), the sector attracted just $7.24 million in foreign capital during the period, a significant fall from the $80.78 million recorded in the same quarter of 2025.
The latest figure also represents an even steeper decline when compared to the $191.57 million invested in the sector during the corresponding period in 2024.
The development comes more than a year after the Nigerian Communications Commission (NCC) approved a tariff adjustment for telecommunications companies, a move industry stakeholders believed would improve operators’ financial capacity and encourage greater infrastructure investment.
At the time, Minister of Communications, Innovation and Digital Economy, Bosun Tijani, said the increase would help telecom operators expand infrastructure and improve connectivity across the country.
Despite those expectations, the latest NBS report suggests that foreign investor confidence in the sector has weakened significantly.
The decline was not limited to telecommunications alone, as several other productive sectors also recorded reduced foreign capital inflows compared to previous years.
Manufacturing attracted $152.27 million in the first quarter of 2026, while the trading sector received $65.79 million, both remaining below figures recorded in 2024.
The electrical sector experienced one of the biggest drops, attracting only $2.7 million in foreign investments, while information technology services recorded $11.33 million, far below levels seen two years earlier.
In contrast, the banking and financial services sectors continued to dominate foreign investment inflows into Nigeria.
According to the report, the banking sector attracted $7.55 billion, accounting for nearly 73 percent of total capital imported into the country during the quarter, while financial services received $2.43 billion.
The figures highlight a growing concentration of foreign investments in financial institutions, while key productive sectors continue to struggle to attract significant international capital.
Source: National Bureau of Statistics (NBS).
