Telecom investment rises 2.68% in Q1 2022 versus Q1 2021
By Jeph Ajobaju, Chief Copy Editor
Telecom investmentin infrastructure, network expansion, and other facilities rose 2.68 per cent from $56.28 million in the first quarter of 2021 (Q1 2021) to 57.79 million in Q1 2022, according to National Bureau of Statistics (NBS) data.
There was zero foreign direct investment and foreign portfolio investment in the sector in Q4 2021.
The NBS obtains capital importation data from the Central Bank of Nigeria (CBN) and factors in imported physical capital, such as equipment and funds.
Capital importation is divided into foreign direct investment, portfolio investment, and other investments.
Total capital importation in all categories in Q1 2022 was $1.57 billion, down from $1.91 billion in Q1 2021.
But MTN and Airtel disclosed in their releases for Q1 2022 that they invested a combined N208.56 billion in network expansion and other capital expenditures.
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Expanding 4G coverage
“Capital expenditure in the period was up by 80.8 per cent off a lower base in Q1 2021 and aggressive coverage expansion to capture growth opportunities, focusing on the 4G network and rural telephony programme.
“We are also frontloading some of our capex plan for the year as part of risk mitigation on supply chain disruption,” MTN said, per reporting by The PUNCH.
“Core capex, excluding the right of use assets, increased by 156.8 per cent, with capex intensity of 17.2 per cent remaining within target levels.
“We deployed 2,260 4G sites, representing approximately 85 per cent of the total sites deployed during the period and reflecting solid data revenue growth.”
Airtel explained that, in Q1 2022, “we continued to invest in our network by expanding 4G coverage and building capacity to cater for the future needs of our customers and to continue providing them with high-speed data.
“Our expansion of 4G network capability across our footprint and connecting rural areas through the deployment of new sites continued to be our two key focus areas.
“Our investment in the 4G network through single RAN technology has resulted in both expansions of our 4G coverage and enhanced network capacity.
“At the end of FY’22, 87.6 per cent of our total sites are now on 4G, compared to 76.5 per cent in the previous year.”