Telecom investment rises 165% but still low for broadband target
By Jeph Ajobaju, Chief Copy Editor
Telecom received $153.5 million investment in the second quarter ended June (Q2 2022), the highest in the last six quarters, and surpassing $107.46 million in full year 2021 (FY 2021).
The figure is 165 per cent above $57.79 million in Q1 2022, according to the latest Capital Importation data released by the National Bureau of Statistics (NBS).
However, foreign investment in the telecom sector is still too low to meet the infrastructure requirements for the implementation of the Nigeria National Broadband Plan (NBP 2020-2025).
The NBP targets 70 per cent broadband penetration by 2025, for which industry experts say the sector will require at least $3.4 billion investment in fibre infrastructure.
“One of the things we need to do continuously is to ensure that we make our industry attractive to FDI by ensuring we have a very conducive and stable environment,” said Olusola Teniola, for Association of Telecommunications Company of Nigeria (ATCON) President.
“A stable environment will mean that policies have to be consistent and seen to be working.
“We have always said this in the past, before coronavirus came to our shores; we need the government to create an enabling environment, to create the right incentives that will continue to attract foreign direct investments.”
__________________________________________________________________
Related articles:
Phone subscribers notch 204m, MTN retains lead
Telcos gain and lose in service quality competition
NCC rejects telcos’ 40% tariff hike request
__________________________________________________________________
Need for forex stability
ATCON President Ikechukwu Nnamani added that instability in the foreign exchange (forex) market is a major discouragement for many foreign investors interested in Nigeria’s telecom.
“It has been estimated that the country would require $100 billion investments in the next 10 years to bridge the existing infrastructure gap in the telecom sector, but where is the money going to come from?” he asked, per reporting by Nairametrics.
“The exchange rate situation in Nigeria is of serious concern for foreign investors, they are not sure of what the situation would be by the time they want to repatriate their returns.
“Their returns on investments could be halved due to the fluctuations in the exchange rate. If we want to see the investors, we have to first address the foreign exchange situation.”
Nnamani said another factor hindering foreign investment is the high cost of doing business in Nigeria.
Investors would always look for markets where there is ease of doing business and where their returns on investments are guaranteed, he stressed.
, the highest in the last six quarters ...){kind=link}