Nigeria’s telecom sector attracted $304 million FDI in H1 2024 – NBS
By Ralph Tathagata
The first six months of 2024 have witnessed significant improvement in Foreign Direct Investments (FDIs) as the Nigerian telecom sector attracted a total of $304 million.
According to the National Bureau of Statistics (NBS), the sector has more than doubled the $134.75 million capital importation recorded in the year 2023 with the half year record.
The NBS data showed that the sector attracted $191.5 million capital inflow in the first quarter of this year, marking a substantial 769% increase compared with $22.05 million received in Q1 2023.
The data further revealed that, in Q2 2024, FDIs in the sector stood at $113.4 million, lower than the inflow recorded in the preceding quarter, but represents a significant 339% increase over the $25.81 capital inflow recorded in the same period last year.
Stakeholders in the telecom sector, however, have no cause to jubilate over the development yet. Policy somersaults of the government, they noted, can hardly sustain recorded achievement and reverse the losses of the past years, as far as the sector is concerned.
For Gbolahan Awonuga, the Executive Secretary of the Association of Licensed Telecommunications Companies of Nigeria (ALTON), the issue of forex instability is still a major problem that needs to be addressed to encourage more investments in the telecom sector.
“Whatever we are seeing now may be a flash in the pan until the industry challenges are addressed. Issues of Right of Way charges are still there, likewise multiple taxation and above all the forex instability that continues to affect the operators’ ability to import equipment,” he said.
Also, Wale Babalola, a consultant in the telecoms market, said investments in the first six months of the year are still quite insignificant to drive the growth sector currently needs.
“Yes, it’s good that the sector is doing better than last year and to an extent, the last two years, but that is not enough to bridge the existing infrastructure in the sector.
“Besides, many investors are still watching to see how the government will handle several policy issues still hanging. one of which is tariff regulation. Any country that wants to attract investors should be able to assure returns on investments.
“I don’t think that exists right now in the telecom market with the regulator preventing the telecom operators from reviewing their pricing to adjust for inflation and the rising operating costs,” he said.
The recent boost in FDI is coming after years of consistent decline in investments even with a widening infrastructure gap requiring billions of dollars in investments to bridge.
RECOMMENDED ARTICLES
Comment
No comments found.