Foreign investment in Nigeria’s telecommunications sector plunged by 91 per cent in the first quarter of 2026, raising fresh concerns about investor confidence despite recent efforts to improve the industry’s profitability.
According to the latest capital importation report released by the National Bureau of Statistics (NBS), the sector attracted just $7.24 million in foreign capital during Q1 2026, compared with $80.78 million recorded in the same period of 2025.
The sharp decline means telecommunications accounted for only 0.07 per cent of the total $10.37 billion capital imported into Nigeria during the quarter.
The figures also reveal a steeper 96.2 per cent drop when compared with the $191.57 million invested in the sector during the first quarter of 2024.
The downturn comes despite a tariff increase approved for telecommunications operators in January 2025. At the time, the Nigerian Communications Commission (NCC) approved the first major tariff adjustment since 2013 following requests from operators seeking relief from rising operating costs.
Minister of Communications, Innovation and Digital Economy, Bosun Tijani, had argued that the new pricing structure would enable telecommunications companies to invest in infrastructure upgrades and improve connectivity nationwide.
Manufacturing, Trading Also Record Weak Investment
The telecommunications sector was not alone in experiencing weaker foreign capital inflows.
The production and manufacturing sector attracted $152.27 million in Q1 2026, an improvement from $129.92 million recorded a year earlier. However, the figure remained below the $191.52 million posted in the corresponding period of 2024.
Trading also saw mixed fortunes. The sector received $65.79 million during the quarter, higher than the $34.39 million recorded in Q1 2025, but significantly lower than the $494.33 million attracted in Q1 2024.
One of the most severe declines was recorded in the electrical sector, which received only $2.7 million in foreign capital inflows, compared with $9.03 million in Q1 2025 and $58.93 million in the same period of 2024.
Information technology services recorded $11.33 million in inflows, improving slightly from $7.21 million in Q1 2025 but falling far short of the $171.70 million attracted during the corresponding period in 2024.
Banking Sector Dominates Capital Importation
While productive sectors struggled to attract foreign investors, the banking and financial services industries remained the biggest beneficiaries of capital inflows.
The NBS report showed that the banking sector attracted $7.55 billion in Q1 2026, accounting for 72.79 per cent of total capital imported into Nigeria.
Financial services followed with $2.43 billion, representing 23.42 per cent of overall inflows during the period.
The latest figures highlight a growing concentration of foreign capital in Nigeria’s financial sector, while key productive industries such as telecommunications, manufacturing, trading and technology continue to face challenges in attracting sustained international investment.
