Data released recently by the Nigeria Bureau of Statistics (NBS) has put the foreign investments that came into Nigeria’s telecom sector in Q2 2023 at $25.81m.
With the release of this data by the NBS, Nigeria’s total capital importation in Q2 2023 dropped to US$1.03bn, lower than US$1.5bn recorded in Q2 2022, indicating a decrease of 32.9 percent y/y. Quarter on quarter, capital importation declined by 9.04% from US$1.13bn in Q1 2023.
The statistics revealed a decline from US$153.50m in Q2 2022, representing a significant decline of 83.19 percent y/y.
Quarter on quarter, foreign capital inflow into the telecoms sector increased by 17 percent in Q2 2023 when compared with the US$22.05 million investments recorded by the sector in Q1 2023.
The telecommunications sector has also been affected by the issues that the country’s economy is currently facing, as seen by dwindling industry numbers.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) had earlier raised alarm on the several issues facing the sector, one of which is the issue of multiple taxation, a key factor deterring investments in the sector.
According to the Chairman of ALTON, Engr. Gbenga Adebayo, telecoms operators are currently paying a total of 39 taxes and levies as governments at different levels in the country continue to introduce various charges.
The NBS data also revealed that the telecoms sector accounted for 2.51 percent of the total capital inflow into the economy in Q2.
In Q2 2023, the sector growth rate declined to 9.74 percent from the 11.71 percent recorded in Q1 2023, while contributing 16.06 percent to the aggregate Real GDP.
According to the Nigerian Communications Commission (NCC), teledensity, the number of active telephone connections per 1,000 inhabitants living within an area, declined to 115.63 percent in August 2023 from 115.70 percent in July 2023. Broadband penetration also declined to 45.57 percent from 47.01 percent, while mobile subscriptions declined to 220.72 million from 220.86 million.