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.

Airtel and Globacom have already restored similar services. MTN now follows after the Federal Competition and Consumer Protection Commission (FCCPC) suspended enforcement of the Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025.

The regulator introduced the policy in 2025 and classified airtime and data lending as consumer credit. This required telecom operators and their partners to obtain licences and meet compliance conditions.

In April 2026, MTN, Airtel, Globacom and 9mobile suspended airtime lending services to comply with the directive.

A court order issued on April 15, 2026, followed a case filed by the Wireless Application Service Providers Association of Nigeria (WASPAN), which represents value-added service providers. The order triggered further regulatory challenges and expanded the disruption.

By one estimate, the suspension affected about 40 million subscribers across Nigeria. Many of them depend on airtime borrowing for quick communication, small business operations and emergency use. The service sits within a market valued at about ₦400 billion.

MTN had initially taken a careful position. The company told investors it would not restart Xtratime unless the regulations were struck down or it received a clear directive to resume.

That position has now changed, after the FCCPC paused enforcement on May 22, 2026, MTN confirmed it will reinstate the service.

A company insider said: “The Federal Competition and Consumer Protection Commission (FCCPC) has suspended the enforcement of DEON. To that extent, we will reinstate the service,”

Competition also had an impact. Airtel and Globacom moved earlier to restore their own airtime lending platforms once the enforcement pause began, increasing pressure on MTN to follow.

MTN Xtratime lending allows customers to borrow airtime or data and repay on later top-ups. The service generates fees for the company and supports overall network usage.

During an earnings call, MTN Nigeria chief executive Karl Toriola said the impact on usage was short-lived. He said:

“There was a short-term impact on consumption patterns, which lasted only a few days,” MTN Nigeria chief executive officer Karl Toriola said during the earnings call. “However, as time progressed, customers adapted. They either shifted to self-funded usage or found alternative ways to manage short-term needs.”

The company estimates that Xtratime fees contribute about 3% of total revenue. Airtime and data linked to the service account for roughly 20% of overall airtime distribution.

Tobechukwu Okigbo, MTN Nigeria’s chief corporate services and sustainability officer, also noted earlier concerns around resumption conditions.

He said: “First, we would require either a court ruling that sets aside the regulations empowering the FCCPC to license, which has not happened, or a clear directive instructing us to reinstate the service.”

MTN Nigeria recorded ₦5.2 trillion in revenue in 2025, equal to about $3.77 billion. It expects this to rise to ₦6.24 trillion, or about $4.52 billion, in 2026.

Despite the disruption, MTN maintains that airtime consumption patterns are still stable. The company argues that customers mainly changed how they pay, not how much they use services.

“I note that MTN does not expect Xtratime’s absence to derail performance targets,” an executive said in internal discussions around the update.

In its first quarter 2026 report, MTN said it is still onboarding approved partners and expects full restoration once the process is completed.

The company now treats the service as operationally important but not critical to overall performance.

Driven by a directive from the Nigerian Communications Commission (NCC) following a clean billing audit, the goal is to show users exactly how background app activities, automatic updates, and video streaming drain their balances as data consumption across the country skyrockets.

Operators have already started sending customers daily reports showing how much data they used the previous day.

An official at one of the telecom companies in Nigeria said the data depletion issue has become a major concern across the industry.

“An average subscriber believes their service provider steals their data once their data is exhausted before time or depletes faster than they expected, which is not true.

“Over the years, we have tried to enlighten the subscribers on factors that could lead to their data being depleted fast, which include smartphone functionality, among others.

“And now, we are looking at tools that could show the subscribers not just what they have used, but also how they have used it to further promote transparency,” the source said.

He added that operators are also stepping up public awareness campaigns to help subscribers understand why data may finish faster than expected.

The renewed drive for transparency comes as data usage across Nigeria gets more expensive.

Nigerians consumed more than four billion gigabytes of data in the first quarter of 2026, driven by heavy use of video streaming platforms, social media, fintech services and remote work tools.

That growth has also increased pressure on telecom infrastructure, with networks in many parts of the country now struggling during peak hours, leaving subscribers with slower internet speeds and unstable connections.

Many users often interpret those issues as abnormal data depletion.

Telecom operators are also dealing with worsening infrastructure problems. Industry data showed there were 19,384 fibre cuts in 2025, while another 5,934 incidents were recorded in the first quarter of 2026 alone.

At the same time, only about 25% of planned 4G expansion projects for 2026 have been completed, leaving networks overstretched as internet demand grows.

In December 2024, the NCC said it carried out a billing audit across major mobile networks after repeated complaints from subscribers. According to the regulator, the audit did not uncover any major issue linked to unfair data deductions.

The Executive Vice Chairman of the NCC, Dr Aminu Maida, said the exercise was completed in the third quarter of 2024 using independent auditors.

“We had a hypothesis that it isn’t true that there is a data depletion issue in the industry. It could be perception.

“So the first thing we did was that we immediately conducted a billing audit on the systems of the major MNOs, using reputable auditors. That exercise was completed in Q3 of this year (2024) and surprisingly, we didn’t find any major issues,” he said.

The NCC has repeatedly warned that several smartphone features and apps consume data without users actively using them. According to the commission, background app activity, cloud syncing, automatic updates and location services are some of the biggest causes of unexpected data usage.

The regulator advised subscribers to monitor their usage regularly, turn off background data access for selected apps and disable automatic updates where necessary.

It also recommended using Wi-Fi whenever possible and installing ad blockers to reduce unwanted data consumption from online advertisements.

Meanwhile, Nigeria is reviewing its 26-year-old telecom policy as the government looks to address growing pressure on the sector.

Proposed reforms include stronger consumer protection rules, new tariff structures, wider 5G deployment and tougher measures to protect telecom infrastructure from vandalism and fibre cuts.

Authorities say the reforms are aimed at improving digital access, strengthening cybersecurity and encouraging long-term investment in the country’s telecom industry, ultimately reducing data depletion across Nigeria.

Documents filed with the U.S. Securities and Exchange Commission show that IHS shareholders will vote on the proposed deal at an extraordinary general meeting in London later this year. 

If approved, MTN will acquire all remaining shares in IHS for $8.50 per share in cash and remove the company from the New York Stock Exchange.

The offer values IHS at an implied equity value of about $2.9 billion, excluding its Latin American operations. The price also represents a 9.7% premium to the company’s 30-day volume-weighted average share price as of February 4, 2026.

MTN plans to fund the transaction with about $1.1 billion from IHS’s existing balance sheet and another $1.1 billion from its own liquidity and debt facilities.

The deal already has support from shareholders controlling more than 40% of voting rights. MTN’s subsidiary, Mobile Telephone Networks Holdings, agreed to vote its 85.2 million shares in favour of the transaction. Those shares account for roughly 21.1% of IHS voting power.

Another major investor, Oranje-Nassau Développement, linked to French investment group Wendel, also committed its support. The firm controls about 63 million shares, representing nearly 19.6% of voting rights.

MTN investor documents indicate that shareholders representing around 46% of voting power are already aligned behind the transaction ahead of the meeting.

IHS’s board has also endorsed the acquisition. “The board unanimously authorised and approved the execution, delivery and performance of the merger agreement,” the company said in the filing.

Once completed, the transaction will end IHS’s run as a publicly traded company, just five years after its New York listing in 2021. The company had positioned itself as an independent infrastructure provider serving several mobile operators across Africa, the Middle East and Latin America.

Still, MTN has been one of its biggest customers and shareholders for years.

The acquisition will also give MTN direct ownership of a large part of the infrastructure supporting its mobile operations across Africa. IHS operates about 28,700 towers across its markets, including roughly 15,942 towers in Nigeria, where it holds an estimated 41 per cent market share.

MTN operates in all of IHS’s African markets, including Nigeria, South Africa, Cameroon, Côte d’Ivoire and Zambia.

Telecom operators across Africa have moved to take greater control of critical infrastructure as inflation, currency pressure and network costs squeeze margins.

In 2024, Airtel launched Airtel Africa Fibre to manage its 70,000-kilometre fibre network directly. Safaricom followed in 2025 by taking control of power systems at its telecom sites and deploying its own solar infrastructure instead of relying fully on tower-management contractors.

The IHS deal is expected to reduce dependence on third-party tower companies for MTN, while improving network management and foreign exchange risk control across key markets.

The filing also showed that employee stock awards under IHS’s incentive plans will be converted into cash payments based on the $8.50 offer price if the transaction goes through.

The merger still requires approval from at least two-thirds of votes cast at the shareholder meeting before it can proceed.

Figures from the Nigerian Communications Commission (NCC) show 152 generators and 504 batteries were taken within the year and the rate has not reduced since then.

In the first two months of 2026, operators reported 64 stolen batteries and 17 generators.

At the same time, other forms of vandalism are increasing, with cable theft climbing fast. There were 160 cases in January 2026, up from 74 in the same month last year.

February followed a similar pattern, with 151 cases compared to 73 a year earlier. Diesel theft is also widespread, with 222 incidents recorded between January and February.

These losses are hitting network operations. Service disruptions are becoming more frequent, especially in states such as Delta, Rivers, Cross River, Akwa Ibom, Ogun, Ondo, Edo, Lagos, Kogi, the FCT, Kaduna, Niger, Osun and Kwara.

Operators in the industry say the damage goes beyond stolen equipment. Fibre optic cables are also under stress.

The NCC recorded about 1,100 fibre cuts in 2025 and in January 2026, incidents jumped steeply to 40, from just four cases in December. That jump alone shows how quickly the problem is growing.

Fibre damage affects more than phone calls. It interrupts banking services, emergency response systems and internet access. In many cases, repairs take hours or even days, leaving users offline.

The financial cost is heavy. A standard 15 KVA generator costs about ₦3.5 million. When hundreds are stolen in a year, operators face replacement costs running into billions of naira. On top of that, they spend more on security, monitoring and repairs.

Speaking on the situation, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, said the attacks are slowing progress across the industry.

“These acts of sabotage have significantly disrupted network services, causing widespread connectivity blackouts leading to degradation of services and severely impacting millions of subscribers.

“These are not mere materials, but they are the backbone of our digital economy, security systems, and national communications grid,” he said.

Operators say they have continued to invest in network upgrades, but theft and vandalism are holding them back. Equipment being targeted includes power cables, rectifiers, fibre lines, diesel generators, batteries and solar systems.

A telecom consultant who spoke to Nairametrics, Adewale Adeoye, said the scale of the losses means operators must do more to protect their assets.

“If you are spending billions to build infrastructure, you also have to spend money to secure it.

“While this should not have been the case in an ideal situation where the government is responsible for security of lives and properties, years of continuous attacks and thefts have shown that the government cannot be relied upon.

“So, the telecom operators have to up their game in protecting their facilities,” he said.

The Federal Government had earlier moved to protect the sector. In August 2024, Bola Tinubu signed the Designation and Protection of Critical National Information Infrastructure Order. The law makes it a criminal offence to tamper with telecom infrastructure.

Officials say the policy is meant to protect investments and strengthen the digital economy. However, the growing number of thefts reveals enforcement is still a challenge.

In February 2026, the NCC and the Nigeria Security and Civil Defence Corps warned contractors and individuals against damaging fibre cables during construction. They said such actions now carry criminal penalties and promised stricter enforcement.

Even with those warnings, telecom theft, among other incidents, are still increasing in Nigeria.

The event, scheduled to be held at Radisson Blu Hotel Ikeja on April 16, is the 8th edition of the Policy Implementation Assisted Forum centred on the theme, “Accelerating Nigeria’s Digital Backbone: Dig Once Policy, Project BRIDGE and Strategies for Effective Fibre Deployment.”

The gathering comes at a time when the Federal Government is pushing its $2 billion Project BRIDGE to stretch Nigeria’s fibre coverage from about 35,000 kilometres to 125,000 kilometres by 2030.

Many in the sector say this target cannot be met without fixing how infrastructure projects are handled. Hence, the discussion, which is focused on the Dig-Once approach, means laying fibre ducts at the same time roads, rail lines and other public works are built or repaired.

Stakeholders say this simple step could reduce costs and reduce repeated digging.

Data from the Nigerian Communications Commission shows operators recorded more than 50,000 fibre cuts in 2024, with over 60% happening during road construction and repairs. Each incident caused service disruption and forced companies to spend heavily on fixes.

In Lagos alone, operators said they spent more than N5 billion last year repairing damaged fibre lines. That money, they argue, could have gone into expanding networks instead.

Again, companies still deal with high Right of Way charges. Road works often happen without coordination. In many cases, roads are dug up repeatedly to lay cables that could have been installed earlier.

Organisers say the forum will bring all sides together. Government agencies, telecom operators, infrastructure firms and state authorities are expected to agree on a common framework and practical steps for rollout.

Omobayo Azeez of Business Metrics Limited believes the stakes are high. He said Nigeria is not fully benefiting from the several undersea cables already connected to its shores because inland fibre remains weak.

“The Project BRIDGE initiative should excite everyone because of ambitious targets. But for those who understand the operating terrain, and why it took the industry over 20 years to achieve around 35,000km of fibre network that the country currently operates for broadband connectivity.

“The project calls for a major shift in execution approach with the adoption of a National Dig-Once Policy as the starting point.

“PIAFo, now in its 8th edition, is again serving as the viable platform for representatives from government ministries and agencies, senior telecom executives, infrastructure companies, data centre operators, equipment manufacturers, state governments, and industry associations to chart the way forward.”

The forum will include keynote speeches, panel sessions and closed-door talks, and with a goal to agree on regulations that can be applied across federal, state and local levels, and set timelines that can be followed.

PIAFo 8.0 is a chance to fix long-standing problems that have slowed Nigeria’s broadband growth for years.

The company said the trial focused on locations with no terrestrial signal. In those areas, Starlink Mobile connected directly to 4G smartphones using its satellite network.

Users were able to send messages, make WhatsApp calls, check maps, and complete transactions on the Airtel app.

Sunil Taldar, chief executive officer of Airtel Africa, said: “We are thrilled to move from announcement to actionable steps with our partners at SpaceX. This testing phase in Kenya is a testament to our commitment to expanding global access.

“By integrating Starlink Mobile’s technology, we are ensuring that our customers remain connected even when they travel beyond our terrestrial network.”

The company now plans to study the results from Kenya before expanding to its other markets. Airtel operates in 14 African countries and serves more than 170 million customers. However, rollout will depend on approvals from regulators in each country.

At the same time, the scope of the service is expected to grow. Airtel and SpaceX are preparing to introduce voice calls and wider data services using the next version of the technology, known as Starlink Mobile V2. That upgrade is designed to deliver broadband directly to standard mobile phones.

Across Africa, other telecom operators are moving in the same direction. MTN Zambia has already tested similar satellite-to-cell services, including data sessions and financial transactions. Nigeria is also expected to see deployments in 2026, with operators positioning for early entry.

So, this is not an isolated test. It is part of a wider push to eliminate mobile dead zones across the continent.

In Kenya, though, regulators are reviewing the development. The Communications Authority has opened a review into the Airtel-Starlink partnership to assess whether satellite signals could interfere with existing 3G, 4G and 5G networks. There are also proposals to raise satellite licence fees sharply, which could increase the cost of deployment.

Beyond Africa, the market itself is growing commendably. Estimates put the satellite phone segment at $3.87 billion in 2025, increasing to $4.49 billion in 2026. The satellite communications market is projected to reach $27.6 billion next year, with long-term growth expected.

This was revealed during the inaugural Rural Connectivity Summit organised by Business Metrics, in Lagos, where Dr Aminu Maida, executive vice chairman of the Nigerian Communications Commission (NCC), stressed that connectivity is far more than speed, it’s about economic inclusion.

“The accurate measure of connectivity is not in megabits per second, but in the economic value it creates or loses,” said Dr Aminu Maida, whose keynote address was delivered by Tunji Jimoh, Zonal Controller of the NCC Lagos Office.

At the event, themed “Rethinking Digital Connectivity to Unlock Rural Economic Potential,” he described connectivity as “an indispensable part of life,” noting that when it fails, “opportunities stop, and lives can be at risk.”

Dr Maida noted that despite progress, rural Nigeria is digitally invisible, with internet access still at 23% compared to 57% in urban areas. This gap, he explained, cuts off millions from modern education, markets, healthcare, and financial services, a situation he called “unacceptable and unsustainable.”

Research shows that a 10% increase in broadband penetration can drive 1.38% GDP growth in developing economies. However, Nigeria’s broadband penetration as of August 2025 stood at 48.81%, below its potential. 

While coverage has expanded, with 3G and 4G networks reaching 86.34%, usage and household access remain at 39.2% and 40.1% respectively.

Nigeria’s ICT Development Index (IDI) score also exposes this imbalance. At 52.9, the country ranks 137th out of 164 economies, following far behind the global average of 77.6 and Africa’s 56.1.

To tackle these challenges, Dr Maida outlined NCC’s ongoing initiatives through the Universal Service Provision Fund (USPF). The Fund has financed over 2,500 educational projects and delivered 100,000 computers to schools nationwide.

One unique project is the Emerging Technology Centre at Ogun State Institute of Technology, where more than 9,000 students now have access to digital tools for innovation.

Beyond education, the USPF’s e-Health Project connects rural clinics to larger hospitals for remote consultations, while the e-Accessibility Project provides persons with disabilities with assistive technology. 

To ensure sustainability, the NCC has also launched the Impact Alliance, a partnership network involving private sector players, civil society, and international bodies, to co-invest in inclusive connectivity.

In response to the sabotage of telecom infrastructure, Dr Maida highlighted the Critical National Information Infrastructure (CNII) Order, signed by the President in June 2024, empowering law enforcement to protect telecom assets. 

“Our advocacy has led to 11 states offering zero charges for right-of-way permits,” he said, adding that 70 others have aligned with the national benchmark of ₦145 per linear metre.

The Commission has also been working with mobile network operators, global partners like GSMA and the World Bank, and the Office of the National Security Adviser to safeguard telecom assets and promote affordable broadband deployment.

“We stand at a strategic crossroads. The global digital race is accelerating, and we must act decisively to ensure our youth are creators, not consumers, of digital value,” Dr Maida said.

He urged governors to support right-of-way reforms, operators to speed up rural rollouts, and communities to protect telecom infrastructure. “These assets are their bridge between backwardness and global relevance,” he stated.

With over 45% of Nigeria’s population still living in rural areas, the NCC wants digital inclusion to go beyond policies, it is a national strategy for growth.

Effective August 10, the new rates began applying to over 15 popular international destinations, including the United States which has moved to ₦30 per minute, down from ₦35, United Kingdom is now N350 from ₦400, while India also moved down to ₦40 from N45.

The rates for China, Saudi Arabia and Cameroon however recorded major reductions moving to ₦75, ₦300 and ₦700 respectively.

The reduction was also extended to African countries including Benin Republic which goes for ₦650 per minute, Niger Republic ₦750, Ghana ₦500, and Togo ₦650. United Arab Emirates also moved from ₦450 to ₦325, Germany to ₦550, Côte d’Ivoire ₦700, Libya ₦700, while calls to Malawi is now ₦1,100 from ₦1,200.

Glo aims to provide more value for its customers through these revised rates, encouraging them to make Glo their preferred network for international calls. New IDD bundles will also be introduced, offering frequent international callers even more attractive deals.

Globacom, which remained optimistic that frequent international callers will benefit immensely from the reductions in IDD bundles, enjoined customers to take advantage of the new rates to stay connected with friends and business associates across the globe.