The operators, under the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said much of the money currently funding network expansion and infrastructure development comes from domestic financing, reinvested earnings and other funding channels that are not fully captured by the National Bureau of Statistics’ capital importation framework.

The reaction follows the release of the NBS Capital Importation Report for the first quarter of 2026, which showed that foreign capital inflows into telecommunications dropped from $80.78 million a year earlier to $7.24 million.

According to the report, telecoms accounted for just 0.07% of the $10.37 billion that entered the Nigerian economy during the quarter.

ALTON said the figure presents only part of the investment picture.

“…this metric appears to capture only a portion of the total capital actively deployed within the sector.

“Our industry’s substantial Capital Expenditure (CAPEX) figures suggest that current investment derives from domestic capital sources, reinvested operational earnings – financial mechanisms that may not be fully reflected in conventional foreign capital importation metrics,” the association said.

The group noted that mobile network operators, tower companies and other telecom firms invested about N2.13 trillion in capital projects in 2025. It added that planned capital expenditure for 2026 currently stands at N1.86 trillion.

According to ALTON, the funds are being directed towards network expansion, infrastructure upgrades, technology improvements and measures aimed at strengthening operational resilience.

The association argued that the wide gap between reported foreign inflows and actual spending within the industry points to shortcomings in the current method used to track investments.

To address this, it called for collaboration between the Nigerian Communications Commission (NCC), the National Bureau of Statistics and the Central Bank of Nigeria to develop a comprehensive framework for measuring investment in the telecom sector.

“To ensure Nigeria’s telecommunications sector investment profile is accurately represented, ALTON respectfully proposes a collaborative engagement among the Nigerian Communications Commission, the National Bureau of Statistics, and the Central Bank of Nigeria to develop a more inclusive and comprehensive investment-tracking framework,” the association stated.

Despite pressure from inflation, high costs of operations and foreign exchange challenges, ALTON said operators have always invested heavily to maintain service quality and expand connectivity across the country.

The association also credited the Federal Government’s approval of a 50% tariff increase in 2025 with improving operators’ ability to reinvest in their networks.

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

While telecom operators questioned the reported investment figure, the NBS data showed that foreign investors significantly increased their exposure to Nigeria during the quarter.

Total capital importation rose to $10.37 billion in Q1 2026, representing an 83.8% increase from $5.64 billion recorded in the same period last year. Compared with the previous quarter, inflows climbed by nearly 61%.

However, most of the money flowed into short-term financial assets rather than long-term productive investments.

Portfolio investments accounted for $9.86 billion, or about 95% of total inflows, while foreign direct investment stood at just $135 million. Other investments, including loans and trade credits, contributed $374.5 million.

The banking sector attracted the largest share of foreign capital, receiving $7.55 billion, followed by the financing sector with $2.43 billion. Manufacturing drew $152.3 million, while telecommunications received $7.24 million.

At the same time, total capital importation into Nigeria rose to $10.37 billion, an 83.8% increase compared with the same period in 2025. This is also a 61% rise from the previous quarter.

Telecoms barely registered in the inflow mix, while banking and finance absorbed most of the funds entering the country.

Banking alone pulled in $7.55 billion, while the financing sector followed with $2.43 billion. Together, they accounted for more than 96% of total inflows.

Most of the capital entering the country came through short-term instruments. Portfolio investment topped the list with about 95% of total inflows, and foreign direct investment small at $135 million, or roughly 1.3%.

Telecoms, by comparison, attracted just 0.07% of total inflows, trailing even trading, agriculture, IT services and equities.

The decline in the sector stands out when set against recent years. Telecom capital importation reached $496.27 million in 2025, while it stood at $456.59 million in 2024. In 2023, it dropped to $134.75 million, before rising again in 2022 to $456.83 million.

A steep drop was recorded in the latest quarterly figures as seen. Inflows fell 91% year-on-year from $80.78 million in Q1 2025 and also dropped 93% from $103.36 million in the previous quarter.

Policy changes in the sector have not shifted investor behaviour. Early in 2025, the Nigerian Communications Commission approved a 50% tariff adjustment for operators with an aim to improve revenue and support network expansion.

Operators also increased spending. The commission said telecom companies invested more than N2.5 trillion in infrastructure in 2025. That is over $1 billion in network upgrades.

Even so, foreign inflows did not follow, as investors appear more focused on fixed-income returns than long-term infrastructure commitments. High yields in money market instruments and bonds continue to draw capital.

This means money is coming in, but not where long-term investment is most needed.

Foreign exchange reforms have helped strengthen activity in banking. Still, volatility in the currency market still weighs on long-term decisions, especially in sectors like telecoms that require steady capital planning.

The International Finance Corporation and the World Bank have in past reports pointed to the need for stable, long-term investment conditions in infrastructure-heavy sectors. That gap is very much visible in the current data.

Heavy dependence on short-term inflows leaves productive sectors exposed. Telecoms, manufacturing and agriculture all receive limited foreign capital.

These risks must be looked into as foreign investment in Nigeria drives growth for telecom, banking and many other sectors.

However, this represents a 91.35 per cent increase compared to $654.65 million in Q3 2023, according to the National Bureau of Statistics.

The decline was primarily driven by reduced foreign direct investment, which accounted for only 8.29 per cent of total inflows. Portfolio investments dominated at 71.79 per cent, with the banking sector receiving the largest share, attracting $579.48 million.

The capital importation for Q3 was also the lowest inflows recorded this year.

The Q3 2024 figure also reflects a sharp contrast to $3.4 billion inflows recorded in the first quarter (Q1) of the year, signaling a three straight decline this year.

This was driven by a 35.98 per cent decline in the country’s portfolio investment to $899 million from $1.4 billion in the previous quarter and a 78.67 per cent decline in its other investment during the period under review.

Despite the slump in overall capital importation, foreign investment into Nigeria increased by 248.07 per cent to $103 billion in Q3 from $289.8 billion in Q2, reflecting renewed confidence in the economy, albeit gradually.

The report said, “In Q3 2024, total capital importation into Nigeria stood at $1,252.66 million, higher than $654.65 million recorded in Q3 2023, indicating an increase of 91.35 percent. In comparison to the preceding quarter, capital importation declined by 51.90 per cent from $2,604.50 million in Q2 2024.”

The NBS report noted that capital importation during the reference period originated largely from the United Kingdom with $502.60 million, showing 40.12 per cent of the total capital imported.

“This was followed by the Republic of South Africa with $185.03 million (14.77 per cent) and the United States with $163.86 million (13.08 per cent).”

In terms of states that recorded capital importation investment, the report said five states – Lagos state (51.92 per cent), Abuja (FCT 47.9 per cent), Kaduna state (0.16 per cent), Enugu and Ekiti – reported the highest inflows.

On the other hand, Bayelsa, Ebonyi, Gombe, Jigawa, Kebbi, Taraba, Yobe, and Zamfara have not generated FDIs in the last six years, it disclosed.

The report further disclosed that, “Standard Chartered Bank Nigeria Limited received the highest capital importation into Nigeria in Q3 2024 with $385.62 million (30.78 per cent), followed by Stanbic IBTC Bank Plc with $382.08 million (30.50 per cent) and — and Citibank Nigeria Limited with $192.88 (15.40 per cent).

“Seven banks in Q3 did not report any capital inflow, they include Globus Bank, Heritage Banking Company Limited, NOVA Merchant Bank, Skye Bank Plc, Suntrust Bank Nigeria Ltd, Unity Bank Plc, and Lotus Bank Limited,” the NBS report said.

The report on Nigeria’s capital importation for the first quarter of 2024 showed that the banking sector was the leading recipient of foreign capital, attracting $2,067.44 million. This represents 61.24% of the total capital imported into the country during this period. 

Several banks stood out as top performers in capital importation for Q1 2024, with the list led by Stanbic IBTC Bank Plc, which received the highest capital importation among Nigerian banks.

The Bank secured $1,257.38 million, accounting for 37.24% of the total capital imported into Nigeria, highlighting Stanbic IBTC’s strong position and appeal to foreign investors.

Following Stanbic IBTC, Citibank Nigeria Limited attracted $547.71 million, making up 16.22% of the total capital importation, while Rand Merchant Bank received $528.73 million, which represents 15.66% of the total capital imported. 

Standard Chartered brought in $399.41 million, showcasing its continued influence and trustworthiness in the eyes of global investors, as Access Bank received $278.18 million, rounding out the list of top-performing banks in terms of capital importation for the quarter.

Other banks, including First Bank and Zenith Bank, had $98.71 million and $96.98 million respectively.

The solid performance of these banks is a positive indicator for Nigeria’s economic stability and growth prospects. 

The capital inflows into the banking sector show that foreign investors are optimistic about the country’s financial institutions and their ability to manage and grow investments effectively.

NBS’ data emphasizes the indispensable role of the banking sector in driving Nigeria’s economic development. The inflows into banks are likely to facilitate increased lending, support business expansions, and stimulate economic activities across various sectors.

The total capital importation for Q1 2024 stood at $3,376.01 million, an increase of 198.06% compared to the $1,132.65 million recorded in the same quarter of the previous year. 

In Q1 2024, the composition of capital importation showed a prevalent preference for portfolio investments. These investments amounted to $2,005.59 million, representing 61.48% of the total capital importation. 

This was followed by other types of investments, which accounted for $1,181.25 million (34.99%). Foreign Direct Investment (FDI) contributed the least, with $119.18 million, making up 3.53% of the total.

The quarter-on-quarter analysis revealed that compared to Q4 2023, where the capital importation was $1,088.48 million, Q1 2024 saw a rise of 210.16%. This increase points to the growing attractiveness of Nigeria as an investment destination.

The report also delves into the origins of these investments, with the United Kingdom leading. 

Investments from the UK amounted to $1,805.83 million, constituting 53.49% of the total capital imported. 

Following the UK, the Republic of South Africa contributed $582.34 million (17.25%), and the Cayman Islands provided $186.21 million (5.52%).

Lagos State emerged as the prime destination for these investments, attracting $2,782.41 million, which is 82.42% of the total capital imported. 

Abuja (Federal Capital Territory) followed with $593.58 million, accounting for 17.58%. Notably, Ekiti State received a minimal share of $0.01 million.

The sectoral analysis shows that the banking sector attracted the highest capital inflow in Q1 2024, with a total of $2,067.44 million. This was followed by the trading sector, which received $494.93 million, and the production/manufacturing sector, which garnered $191.92 million. 

The increase in capital importation is a positive indicator for Nigeria’s economic health. It indicates a renewed confidence among foreign investors in the country’s economic stability and growth potential. The influx of capital is expected to spur economic activities, create jobs, and contribute to overall development.

While the data from Q1 2024 is promising, it is important to sustain this momentum. The need for continuous implementation of investor-friendly policies and addressing underlying issues that could deter future investments is key.

Understanding the drivers behind this surge in capital importation will be essential for maintaining and enhancing Nigeria’s attractiveness to foreign investors.