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.

The meeting, held in Wednesday, brought together senior executives from both organisations to discuss the future of Nigeria’s telecommunications industry, infrastructure development, service quality, and emerging opportunities within the country’s rapidly evolving digital economy.

The Executive Management and Staff of ntel include Afolabi Oladunjoye, Ikechi Jim Nnah, George Ifeonyemetalu, Chinedu Anochirionye, Ariyike Akinbobola LL.B, Nasirudeen Babalola, who were received by the hairman of the NCC, in a meeting centered on innovation, industry growth, and the future of connectivity in Nigeria.

Also present were the Executive Commissioner, Technical Services, Engr. Abraham Oshadami; the Board Secretary, GT Mohammed; alongside members of the Commission’s management and staff.

Discussions during the engagement focused on strengthening industry collaboration, expanding broadband access, improving connectivity infrastructure, and driving innovation capable of supporting Nigeria’s digital transformation ambitions.

Speaking during the meeting, Olorunnimbe emphasised the importance of sustained investment, service quality, and innovation in delivering value to Nigerian consumers.

He encouraged ntel to continue positioning itself as a strong Nigerian player within the highly competitive telecommunications sector.

“The opportunity ahead is significant for operators committed to quality, innovation, and long-term value creation,” he said, reiterating the Commission’s commitment to supporting operators while strengthening the broader telecommunications ecosystem.

The NCC chairman also acknowledged ntel’s ongoing investments and new initiatives aimed at expanding broadband connectivity and enhancing digital access across the country.

For ntel, the visit provided an opportunity to deepen engagement with the regulator while reaffirming its commitment to delivering transformative digital infrastructure and innovative connectivity solutions for businesses, institutions, Internet Service Providers (ISPs), and communities across Nigeria.

The company said discussions also highlighted the growing demand for reliable broadband services and the importance of introducing innovative products capable of expanding digital inclusion and supporting economic growth.

The engagement comes shortly after ntel announced the deployment of NOVA (Tarana), its next-generation Fixed Wireless Access (FWA) initiative designed to improve access to high-speed wireless connectivity nationwide.

According to the company, the project is expected to strengthen ntel’s role as a digital infrastructure provider by enabling partner ISPs, enterprises, and organisations to deliver broadband services using its network infrastructure.

Both parties expressed optimism about continued collaboration toward building a more connected and digitally empowered Nigeria.

New figures released on Monday by the National Bureau of Statistics showed the economy grew faster than the 3.13% recorded in the same period of 2025. 

Still, growth slowed slightly from the 3.99% posted in the fourth quarter of 2025.

The report points to resilience in the non-oil sector, even as crude oil production weakened during the quarter.

Agriculture recorded one of the strongest improvements. The sector grew by 3.15% in real terms, compared with just 0.07% in the first quarter of last year. Crop production was the biggest driver within the sector.

Services were the largest part of the economy, contributing 57.73% to total GDP. The sector expanded by 4.31% during the quarter, although that was slightly below the 4.33% growth recorded a year earlier.

Industry also improved moderately, growing by 3.50% from 3.42% in the corresponding period of 2025.

Nigeria’s non-oil sector continued to carry most of the economy. According to the NBS, the sector grew by 3.94% in real terms and accounted for 96.08% of total GDP in the quarter.

Telecommunications, crop production, trade, cement manufacturing, financial institutions, real estate, construction and road transport were among the sectors that supported growth.

Telecommunications was one of the strongest performers. Information and communication activities grew by 10.98% year-on-year and contributed 11.31% to real GDP, higher than the 10.59% recorded in the same quarter of 2025.

Trade contributed 17.89% to real GDP, while real estate accounted for 13.10%. The finance and insurance sector grew by 8.54%, and construction expanded by 6.38%.

In nominal terms, the country’s GDP stood at N110.79 trillion in the first quarter of 2026. That represents a 17.79% increase from the N94.05 trillion recorded in the same period last year.

Oil production, however, was under stress. Average daily crude oil output fell to 1.55 million barrels per day, lower than the 1.62 million barrels per day recorded in the first quarter of 2025. Production also dropped slightly from the 1.58 million barrels per day posted in the previous quarter.

Even with weaker output, the oil sector still recorded real growth of 2.57%, up from 1.87% a year earlier. Its contribution to total real GDP stood at 3.92%, slightly below the 3.97% recorded in the corresponding quarter of 2025.

The report also showed mixed performances across other sectors. Arts, entertainment and recreation recorded strong growth of 11.25%. On the other hand, electricity, gas, steam and air conditioning supply contracted by 15.30% in real terms.

Education growth slowed to 1.22%, down from 2.47% in the same period last year.

Nigeria is currently dealing with high inflation, expensive living costs and pressure on household spending. Inflation has remained above 15% despite ongoing reforms aimed at stabilising the economy.

Since 2025, the federal government has pushed ahead with policies including fuel subsidy removal, exchange rate unification and fiscal reforms as it tries to strengthen public finances and attract investment.

Compared with some African economies, Nigeria’s latest GDP growth figure placed it ahead of South Africa, where growth slowed to 1.9% in the same period. Ghana recorded 3.5% growth in the first quarter of 2026.

The decision, confirmed by the Nigerian Communications Commission (NCC), puts to rest months of uncertainty over the controversial levy that had threatened to increase call and data costs for over 172 million active subscribers in the country.

“The excise duty has been scrapped. It will not come back. This aligns with President Tinubu’s broader tax reforms and his Renewed Hope Agenda to make Nigeria’s business environment more competitive,” said Dr. Aminu Maida, executive vice-chairman of the NCC.

Background of the Controversial Levy

The excise duty was originally introduced in the 2020 Finance Act, sparking strong pushback from telecom operators and consumer advocacy groups who warned that it would stifle industry growth and worsen affordability for Nigerians already battling rising living costs.

In July 2023, President Tinubu suspended the levy via an Executive Order as part of his fiscal reform agenda.

However, discussions around its reinstatement resurfaced in 2024, creating unease in the industry until this latest announcement confirmed its permanent removal.

Implications for Subscribers and the Industry

The cancellation of the 5% duty is expected to:

• Ease Cost Pressure: Consumers could see more affordable voice and data tariffs.
• Boost Digital Inclusion: Lower costs will accelerate broadband adoption, aligning with the government’s push for a 70% broadband penetration target by 2025.
• Stabilize the Telecom Sector: Operators will have more breathing space to invest in infrastructure, especially as Nigeria pushes toward 5G expansion.

Industry analysts say the move is a major win for the ICT sector, which contributes more than 16% to Nigeria’s GDP, and could serve as a signal of the government’s commitment to creating a pro-investment climate.

What This Means Going Forward

While the removal of the tax is a relief, experts note that affordability gains for subscribers will depend on how operators adjust tariffs in response to reduced levies.

The NCC has assured Nigerians that it will continue to engage stakeholders to ensure consumers enjoy the benefits of the policy change.

PAT aimed at catering to the telecommunication needs ranging from broadband, mobile telephony to other local value-added services in Africa.

A statement signed by its Board Chairman, Adefolarin Ogunsanya, reads:

“We are delighted to announce Osi Echezona Russell as the new Chief Executive Officer of PAT. We are confident in his strategic acumen, and we believe that his vision and commitment to excellence will be instrumental in guiding the Pan African Towers’ next phase of growth and transformation.”

Russell comes with vast experience having served as the Head of Network Deployment at Airtel Nigeria, Operations Director and Chief Technical Information Officer at MIC Tanzania, Chief Technology Officer roles at IPT PowerTech Nigeria, Rhino Niger Networks, and Biswal Nigeria.

He holds a Bachelor’s degree in Electrical/Electronic Engineering and a Postgraduate Diploma in Data Science and Business Analytics.

“He takes over strategic and executive leadership of our company with notable professional accomplishments encompassing network expansion, technology innovation, operational excellence and executive leadership”.

“He will work closely with the Board of Directors and the executive management team to ensure continuity in our business operations and improved customer service delivery”, the TowerCo’s statement reads.

This is a 198.4% year-on-year increase in losses, primarily driven by the devaluation of the naira and high costs of operations.

Despite the losses, the telecommunications giant recorded a 36% increase in revenue, reaching ₦3.36 trillion, compared to ₦2.47 trillion in 2023.

The revenue surge was driven by increased data and voice subscriptions, but it was not enough to offset the ₦925.36 billion foreign exchange losses, which worsened from ₦740.43 billion in the previous year.

According to the financial statement released on February 27, 2025, MTN Nigeria’s operating profit stood at ₦778.24 billion, showing a marginal 0.6% growth from the previous year’s ₦773.66 billion.

However, the company reported a loss before taxation of ₦550.32 billion, representing a 209.4% decline from ₦177.89 billion in 2023.

Market and Dividend Impact

The losses largely affected the company’s market valuation. MTN Nigeria’s market capitalisation dropped by 24.2%, falling from ₦5.54 trillion in 2023 to ₦4.20 trillion by year-end 2024. Similarly, the market price per share fell to ₦200, a decline from ₦264 per share recorded in the previous year.

Due to the negative financial performance, MTN Nigeria’s board has decided not to declare a final dividend for the year, a departure from the interim ₦5.60 per share dividend paid in 2023.

Key Financial Indicators:

• Net liabilities per share rose from ₦2.17 in 2023 to ₦21.84 in 2024, reflecting a 908.7% increase.

• Total equity attributable to shareholders plummeted to ₦458 billion in losses, a drastic fall from ₦45.40 billion in 2023.

• Basic and diluted loss per share stood at ₦19.05, up from ₦6.38 in the previous year.

MTN Nigeria attributed its financial struggles to currency devaluation, rising operational costs, and significant foreign exchange losses.

The company renegotiated key infrastructure-sharing and lease agreements with IHS Towers in 2024, aiming to reduce the dollar-indexed components of lease payments and shift towards naira-based pricing.

Additionally, the long-standing USSD debt dispute with Nigerian banks saw a partial resolution, with banks settling ₦32 billion out of the ₦74 billion owed to MTN Nigeria as per a directive from the Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC).

To ensure a better 2025, MTN Nigeria is investing heavily in network expansion and digital services, including its MoMo Payment Service Bank and broadband services, to drive future growth.

Analysts believe that exchange rate stability and further regulatory interventions will help boost MTN Nigeria’s ability to recover from this financial downturn.

This decision concludes over a decade of appeals from telecom operators, including MTN Nigeria, Airtel, and 9Mobile, who have sought price adjustments to align with economic conditions.

For more than eleven years, these operators have faced high operational expenses due to inflation but were unable to adjust their pricing structures accordingly. 

The NCC has now acknowledged these challenges, with a representative stating that the forthcoming announcement will consider input from both stakeholders and the public, aiming to benefit subscribers and operators.

The proposed adjustments include a potential 40% increase in telecom tariffs. If implemented, the cost of a phone call may rise from ₦11 to ₦15.40 per minute, SMS charges from ₦4 to ₦5.60, and a 1GB data bundle from ₦1,000 to at least ₦1,400. 

The NCC, responsible for reviewing and approving tariff changes in the telecommunications sector, aims to balance the financial impact on consumers while addressing the operational challenges faced by service providers. 

In October 2024, the commission denied Starlink’s request to double its subscription fees to ₦75,000, ascertaining its focus on protecting consumer interests.

The anticipated tariff increase has brought up the issue of the possible effect on internet usage, especially given the country’s focus on digital inclusion. 

Rising food inflation, currently at 39.93%, adds to these apprehensions. Nonetheless, telecom companies have reported high financial losses attributed to the prolonged period without price adjustments. 

MTN Nigeria reported a ₦137 billion loss in 2023, which expanded to ₦514.9 billion in the first nine months of 2024. Similarly, Airtel Africa reported losses of $89 million in the 2024 fiscal year, primarily due to challenges in Nigeria.

Gbenga Adebayo, president of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), argues that implementing cost-reflective pricing will encourage investment and enhance service quality over time. 

In addition to tariff adjustments, the NCC is introducing reforms to improve tariff transparency and combat fraud in the Application-to-Person (A2P) messaging sector, inviting collaboration to enhance Nigeria’s telecommunications sector. 

Again, the NCC plans to simplify mobile network operators’ tariff plans from the current 369 to seven, aiming to simplify choices for consumers and ensure better understanding and monitoring of services. 

These developments occur amid a decline in foreign investments in Nigeria’s telecommunications sector, which dropped by 87% in the third quarter of 2024. 

The Federal Government has announced plans to co-invest in expanding telecom infrastructure to reduce connectivity gaps nationwide, aiming to reverse this trend and address industry challenges. 

Dr Bosun Tijani, minister of Communications, Innovation and Digital Economy, supports these adjustments, acknowledging their necessity in a recent interview.

With the NCC approving the new telecom tariffs and the regime approaching, stakeholders and consumers are advised to stay informed about the forthcoming changes and their possible impacts on telecommunications services in Nigeria.

This is an 87% decrease compared to the $113.42 million recorded in the second quarter, according to the latest report from the National Bureau of Statistics (NBS). Year-on-year, the sector experienced a 77% decline from the $64.05 million recorded during the same period in 2023.

This steep decline results from continued challenges in the industry, despite earlier signs of recovery. In the first quarter of 2024, the sector recorded $191.5 million in capital inflow, representing a 769% increase from the $22.05 million received in the first quarter of 2023. However, this initial revenue was not sustained, as foreign investments dropped sharply in subsequent quarters.

Telecom Sector’s $191.57m Q1 2024 FDI Growth Excites Bosun Tijani

Long-standing Issues Affecting Investments

The telecommunications sector, essential to Nigeria’s economy, has been challenged with foreign exchange instability, high operating costs, and infrastructural deficits. Industry stakeholders, including the Association of Licensed Telecommunications Companies of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), have repeatedly called for government intervention to address these issues.

ALTON’s Executive Secretary, Gbolahan Awonuga, has noted the adverse effects of multiple taxation, unstable forex rates, and Right of Way (RoW) charges on the sector. He noted, “Until these issues are resolved, we are unlikely to see consistent growth in investments.”

Similarly, Engr Ikechukwu Nnamani, CEO of Digital Reality and former ATCON President, stressed the need for a stable policy environment to attract foreign investors. “Policy consistency and economic stability are key to restoring investor confidence,” he stated, adding that the fluctuating exchange rate has discouraged potential investments.

Declining Telecommunications Investments Over the Years

In 2022, the NBS reported that the telecom sector attracted $399.9 million in investments, a 47% decrease from the $753 million recorded in 2021. While the 2021 figures were a recovery from the COVID-19-induced slump in 2020, they were still lower than the $942.8 million recorded in 2019.

This decline has led to reduced capital expenditure (CAPEX) by telecom operators. In 2022, the industry’s CAPEX fell by 30% to ₦785 billion from ₦1.1 trillion in 2021. Experts warn that without significant investment in network expansion and infrastructure optimisation, the sector’s growth could stagnate.

Nonetheless, the telecommunications sector remains a cornerstone of Nigeria’s economy, highly contributing to the country’s GDP and providing essential services to millions. However, the rising inflation and the lack of adequate investment threaten its sustainability.

Stakeholders are urging the government to create a more conducive environment for business. Measures such as stabilising the forex market, reducing operational bottlenecks, and incentivising infrastructure development are seen as critical to reversing the investment decline.

The drop to $14.4 million in Q3 reveals that without sufficient capital inflow, telecom operators face severe limitations in upgrading networks and expanding connectivity, leaving millions of Nigerians underserved. If urgent measures are not taken, the consequences could extend beyond the telecom sector, affecting the broader economy.

Reversing this trend doesn’t just require policy reforms but also collaboration to create a stable, investor-friendly environment. Failure to address these systemic challenges could result in a stagnated telecom industry, hampered innovation, and diminished service quality.

The project, expected to cost over $10 billion, will make Meta the sole owner and operator of the cable, bringing a good difference in how such networks are traditionally managed.

With this goal, Meta is securing reliable infrastructure to support its expanding digital ecosystem. With its platforms accounting for 10% of global fixed internet traffic and 22% of mobile data, the need for a dedicated data pipeline has become necessary. 

Sources close to the project reveal that while planning is well underway, physical implementation is yet to commence. Meta plans to provide further details about the route and capacity in 2025.

The cable’s envisioned route spans the globe, starting from the eastern United States to India via South Africa, and looping back to the U.S. west coast through Australia. 

This design strategically avoids politically unstable regions such as the Red Sea, the South China Sea, and the Straits of Malacca, ensuring uninterrupted service. 

Experts believe the project will be developed in phases due to the limited availability of cable-laying ships and competing demands from other tech giants like Google.

When completed, the cable will enhance Meta’s drive in the subsea cable sector, joining the ranks of Google, which has ownership stakes in numerous routes globally. 

Unlike Meta’s existing participation in consortium-led projects like the 2Africa cable, this is its first independent ownership of such a system.

Geopolitical and Business Drivers

On the Meta subsea cable project, sole ownership will grant the company priority access to data traffic capacity, enabling better quality service for its global user base. 

Added to this, as a significant portion of Meta’s revenue comes from regions outside North America, securing independent infrastructure will help simplify data delivery in these markets.

Recent incidents, such as damage to submarine cables during conflicts or accidents, have revealed the vulnerabilities of existing networks. In charting a route through safer corridors, Meta aims to mitigate such risks and ensure the reliability of its operations.

India: A Key Destination

India is a central focus of Meta’s plans, both as a major landing point for the cable and as a market with huge growth potential.

The country has the largest number of users on Meta’s platforms globally, with over 375 million Facebook users, 363 million Instagram users, and 536 million WhatsApp users. This large audience has shown keen interest in Meta’s emerging technologies, including AI tools.

Again, India’s relatively low computational costs and growing investments in data centre infrastructure make it an attractive location for future AI training hubs. 

Reports disclose that the cable could facilitate Meta’s goal to expand AI in the region, although the company has yet to confirm such plans.

Currently, across the telecommunications industry, tech giants are taking ownership of subsea infrastructure.

Historically, these networks were developed by telecom consortiums, but companies like Meta, Google, and Microsoft are now focused on these to meet their specific needs.

Showing improvement over the 3.19% growth seen in the second quarter of the year, the increase was primarily driven by the performance of the services sector, which contributed to the overall economic expansion.

As revealed in the latest report from the National Bureau of Statistics (NBS), the services sector grew by 5.19% in Q3 2024, accounting for 53.58% of the total GDP. The telecommunications sector, information services, and financial institutions led the growth. 

These sectors have benefitted from increased demand for digital services and connectivity, as digital transformation continues to be the order of the day across the country.

In contrast, the agricultural sector saw slower growth, with a 1.14% increase in real terms, which is a slight dip from the 1.30% growth in Q3 2023. Crop production was a key contributor to food security and rural employment.

The industrial sector also recorded a stronger performance, growing by 2.18%, a rebound from the 0.46% growth in the same quarter last year. 

This improvement was driven by increased activity in the mining and quarrying subsectors, particularly crude petroleum and natural gas production, alongside modest gains in manufacturing and construction.

The oil sector saw year-on-year growth of 5.17%, marking a recovery from the -0.85% contraction in Q3 2023. However, this growth was slower compared to the 10.15% posted in the previous quarter. 

Nigeria’s average daily oil production increased to 1.47 million barrels per day (mbpd), up slightly from 1.45 mbpd in Q3 2023. The oil sector’s contribution to the total GDP stood at 5.57%, which is an improvement from the previous year but slightly down from Q2 2024.

In terms of nominal GDP, Nigeria’s economy reached N71.13 trillion in Q3 2024, a 17.26% increase from the N60.66 trillion recorded in the same period in 2023. This shows a combination of higher inflation and increased economic activity across various sectors.

The non-oil sector still tops Nigeria’s economy, accounting for 94.43% of GDP in Q3 2024, a slight decrease from 94.52% in the previous year but an increase from 94.30% in the second quarter. 

This sector’s growth was driven by solid performances in financial services, telecommunications, agriculture, transport, trade, and construction.

The government has also outlined plans to rebase the country’s Consumer Price Index (CPI) and GDP by 2025, to improve policy formulation and boost investor confidence. 

This rebase is expected to provide a more accurate reflection of Nigeria’s economic activities and support future growth.