Foreign Direct Investments in Nigeria’s telecoms sector hit $64m in Q3 2023

Nigeria’s telecommunications sector attracted $64 million in Foreign Direct Investments in the third quarter of 2023.

This was disclosed by the recent data from the National Bureau of Statistics, NBS.

Accordingly, the figure represents an increase of 158 per cent compared with the $25.81 million investments recorded by the sector in Q2.

However, on a year-on-year basis, the Q3 2023 figure showed a 17% decline compared to the same period in 2022, when $77.26 million in investments were recorded.

In the first three quarters of the year, the telecom sector attracted a total of $111.91 in foreign investments, according to the NBS capital importation data.

With this, the sector may record a decline in FDIs for the year as the figure for the full year 2022 stood at $456.83 million.

The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engr Gbenga Adebayo, has said that the challenge of multiple taxation in the telecom industry is one of the major factors discouraging further investments in the industry.

According to him, telecom operators are paying 39 taxes and levies, and governments at different levels in the country keep coming up with different charges.

He said the undefined tax regime in the industry has made planning and projections very difficult for players, adding that potential investors are also on the lookout for these factors and are still watching.