Telecoms challenge NBS data, say $7.2m foreign inflow masks N2.13tn network investment push

Telecommunications operators in Nigeria have challenged the National Bureau of Statistics (NBS) report that showed the sector attracted only $7.24 million in foreign capital during the first quarter of 2026, arguing that the figure significantly understates the true scale of investments flowing into the industry.

The operators, under the umbrella of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said the reported foreign capital inflow does not reflect the substantial investments being made by network operators, tower companies and other industry players through local financing, retained earnings and infrastructure reinvestments.A

 

ccording to the NBS Q1 2026 Capital Importation Report, foreign capital inflows into the telecommunications sector fell sharply to $7.24 million in the first quarter of 2026 from $80.78 million recorded in the corresponding period of 2025.

However, ALTON said the figures tell only part of the story.

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In a statement released on Monday, the association noted that telecom operators deployed about N2.13 trillion in capital expenditure in 2025 alone and have already outlined investment plans worth N1.86 trillion for 2026.

The planned spending, according to the operators, will be directed towards network expansion, infrastructure upgrades, technology modernisation and measures aimed at improving operational resilience across the country.

ALTON argued that the contrast between the reported foreign capital inflow and actual investments taking place across the sector exposes limitations in the current methodology used to track investment activity.

“While the reported foreign capital inflow figure provides useful insight, this metric appears to capture only a portion of the total capital actively deployed within the sector,” the association stated.

“Our industry’s substantial capital expenditure figures suggest that current investment derives from domestic capital sources, reinvested operational earnings and other financial mechanisms that may not be fully reflected in conventional foreign capital importation metrics.”

The operators warned that relying solely on foreign capital importation data could create a misleading impression about investor activity in one of Nigeria’s most strategic sectors.

Industry analysts note that telecommunications investments increasingly come from a mix of local borrowing, vendor financing, infrastructure partnerships and retained earnings rather than direct foreign equity injections. As a result, capital importation statistics may not always capture the full extent of sectoral investments.

This trend has become more pronounced as operators seek to reduce exposure to foreign exchange volatility while continuing to fund network expansion projects across the country.

Nigeria’s telecom sector remains one of the biggest drivers of the digital economy, supporting internet connectivity, digital payments, e-commerce, cloud services and emerging technologies. Maintaining investment momentum is therefore seen as critical to achieving the government’s broader digital transformation ambitions.

To address what it described as a reporting gap, ALTON called for collaboration among the Nigerian Communications Commission (NCC), the NBS and the Central Bank of Nigeria (CBN) to develop a more comprehensive framework for tracking telecommunications investments.

The association said such a framework would provide policymakers, investors and the public with a more accurate picture of the sector’s contribution to economic growth.

ALTON also linked the industry’s renewed investment capacity to the Federal Government’s approval of a 50 per cent tariff adjustment in 2025.

According to the operators, the tariff review helped restore financial sustainability after years of rising operating costs, foreign exchange pressures and declining margins.

“The timely intervention enabled operators to transition from financial distress to a sustainable, growth-focused model characterised by significant capital reinvestment,” the association said.

The group added that government policies aimed at stabilising the sector have helped improve investor confidence and encouraged continued infrastructure deployment.

The dispute over telecom investment data comes at a time when Nigeria is experiencing a broader recovery in foreign capital inflows.

The NBS reported that total capital importation into the country rose to $10.37 billion in the first quarter of 2026, representing an 83.83 per cent increase from $5.64 billion recorded in the same period of 2025.

On a quarter-on-quarter basis, capital inflows increased by nearly 61 per cent from $6.44 billion in the fourth quarter of 2025, largely driven by renewed investor interest in the banking and financial services sector amid ongoing bank recapitalisation, foreign exchange reforms and macroeconomic adjustments.

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Despite the controversy over the figures, telecommunications still ranked among the top ten sectors attracting foreign capital during the quarter.

For industry stakeholders, however, the bigger issue is not the amount recorded but whether existing measurement tools are adequately capturing the billions of naira being invested annually to keep Nigeria connected.

The debate highlights a growing challenge for policymakers: as industries increasingly fund expansion through local capital markets, retained earnings and alternative financing structures, traditional foreign investment metrics may no longer provide a complete picture of economic activity.

For Nigeria’s telecom sector, which is preparing to spend nearly N2 trillion this year on infrastructure alone, operators insist the story of investment goes far beyond the $7.24 million captured in official records.