Foreign ICT investment inflow up 310% YoY
By Jeph Ajobaju, Chief Copy Editor
Foreign investment in Nigeria’s information and telecommunications technology (ICT) jumped 310.11 per cent year-on-year (YoY) from $58.06 million in the first quarter of 2022 (Q1 2022) to $238.11 million in Q1 2023.
The latest National Bureau of Statistics (NBS) report shows information technology (IT) saw a 79,922.22 per cent growth in foreign investment, from $270,000 in Q1 2022 to $216.06 million in Q1 2023.
But telecom had a 61.85 per cent decline in investment, from $57.79 to $22.05 million, despite increasing rollout of 4G and 5G services.
Total capital importation fell from $1.57 billion in Q1 2022 to $1.13 billion in Q1 2023.
“Disaggregated by sectors, capital importation into the banking sector recorded the highest inflow of $304.56m, representing 26.89 per cent of total capital imported in Q1 2023,” the NBS said.
“This was followed by capital imported into the production sector, valued at $256.12m (22.61 per cent), and IT Services with $216.06m (19.08 per cent).”
The statistician attributed the decline in telecom funding to the difficulties investors have in repatriating funds to their home countries.
However, the floating of foreign exchange (forex) in June and increasing telco network rollouts are expected to increase capital inflows in the coming quarters.
5G rollout and 4G expansion boosted foreign investment in the telecom sector by 325.12 per cent in 2022, with capital inflow growing to $456.82 million from $107.46 million in 2021.
__________________________________________________________________
Related articles:
Banks can now pay diaspora remittances in naira, CBN directs
Investment in telecom grows to $75.6b in 20 years
Oil and gas investment slides 74%
__________________________________________________________________
Huge potential for telecom growth
GSMA, the global body for telcos, anticipates 5G rollout in 10 top cities in Nigeria would cost telcos $500 million as they would need to build 6,000 base stations, which will boost foreign investment.
The PUNCH reports Nigerian Communications Commission (NCC) Executive Chairman Umar Danbatta recently disclosed total investment in telecom reached $75.6 billion in 2021, combining foreign direct investment and local investment.
In 2018, he said, investment in the sector was $68 billion, which rose to $70.5 billion in 2019, and $72 billion in 2020.
Danbatta has urged international telcos and potential investors to invest in Nigeria’s telecom sector, citing an attractive population of 220 million.
He recently pitched at a telecom conference that “our national plan is to achieve 70 per cent broadband penetration by 2025. We still have less than 50 per cent penetration. This means there is huge investment potential for investors.
“Nigeria’s telecom sector needs more investment in the area of infrastructure deployment.
“The importance of this event for us as a Commission is to showcase the NCC as a Nigerian brand, a foremost telecom regulator in Africa and beyond and to bring about the much-needed investment that will enhance development of the Nigerian telecom industry.”
 from $58.06 million in the first quarter of 2022 (Q1 2022) to $238.11 million){kind=link}