Foreign investment into Nigeria's telecommunications sector declined by 91 percent year-on-year to $7.24 million in the first quarter of 2026, according to the latest Capital Importation Report released by the National Bureau of Statistics (NBS).
The report showed that the sector attracted only $7.24 million during the review period, down from $80.78 million recorded in the corresponding period of 2025. The figure represented just 0.07 percent of the total $10.37 billion capital imported into the Nigerian economy in the first quarter of 2026.
A comparison with the first quarter of 2024 also revealed a sharper decline, as foreign capital inflows into telecommunications dropped by 96.2 percent from $191.57 million recorded during that period.
Context of Tariff Hike
The development highlights a significant slowdown in foreign investment in one of Nigeria's critical sectors despite recent efforts to improve operators' revenue and infrastructure capacity. In January 2025, the Nigerian Communications Commission (NCC) approved an increase in telecommunications tariffs, the first adjustment since 2013, following persistent calls from operators for a review of pricing structures.
Speaking on the decision at the time, the Minister of Communications, Innovation and Digital Economy, Bosun Tijani, said the tariff adjustment would enable telecommunications companies to invest in infrastructure expansion and improve service delivery across the country.
Broader Economic Impact
Beyond telecommunications, the NBS report indicated that several productive sectors also experienced varying levels of decline in foreign capital inflows when compared with figures recorded in 2024. The production and manufacturing sector attracted $152.27 million in the first quarter of 2026, an increase from the $129.92 million received during the same period in 2025. However, the inflow remained below the $191.52 million recorded in the corresponding quarter of 2024.
Similarly, the trading sector received $65.79 million in foreign capital during the quarter, representing an improvement from the $34.39 million recorded in the first quarter of 2025. Despite the increase, the figure was significantly lower than the $494.33 million attracted in the same period of 2024.
Steep Declines in Other Sectors
The electrical sector recorded one of the steepest declines among productive sectors, attracting only $2.7 million in capital inflows during the quarter. This was lower than the $9.03 million recorded in the first quarter of 2025 and the $58.93 million received in the corresponding period of 2024.
Information technology services also witnessed a substantial reduction in foreign investment. The sector attracted $11.33 million in the first quarter of 2026, compared to $7.21 million in the same period of 2025 and $171.70 million recorded in the corresponding quarter of 2024.
Banking Dominates Capital Inflows
In contrast, the banking and financial services sectors continued to dominate foreign capital inflows into the country. According to the NBS, the banking sector attracted $7.55 billion in the first quarter of 2026, accounting for 72.79 percent of total capital imported into Nigeria during the period. The financial services sector followed with $2.43 billion, representing 23.42 percent of total capital inflows.
Combined, both sectors accounted for more than 96 percent of all foreign capital imported into the country in the first quarter of 2026, underscoring investors' continued preference for financial assets over investments in productive sectors of the economy.
