Capital importation: Telecom operators seek inclusive approach to measuring investment

Telecommunications operators in Nigeria have fhave called for the adoption of a more inclusive approach to calculating investment inflows into the sector.

The operators under the umbrella of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) stated this in a statement released on Monday while reacting to the National Bureau of Statistics (NBS) Q1 2026 Capital Importation Report.

According to them, the $7.24 million foreign capital importation figure reported for the telecom sector did not reflect the reality of the investments that flowed into the sector in the period.

What they are saying 

According to the NBS Q1 2026 capital importation report, foreign capital inflows into the telecom sector declined sharply from $80.78 million recorded in 2025 to $7.24 million in Q1 2026.

However, ALTON said the sector continues to attract substantial investments through domestic funding channels, reinvested earnings, and other financing mechanisms that may not be fully captured under the current capital importation framework.

• “…this metric appears to capture only a portion of the total capital actively deployed within the sector.  
• “Our industry’s substantial Capital Expenditure (CAPEX) figures suggest that current investment derives from domestic capital sources, reinvested operational earnings – financial mechanisms that may not be fully reflected in conventional foreign capital importation metrics,” ALTON said.

The association argued that the sharp difference between reported foreign capital inflows and the actual infrastructure investments within the industry highlights a gap in the current investment reporting methodology.

• “To ensure Nigeria’s telecommunications sector investment profile is accurately represented, ALTON respectfully proposes a collaborative engagement among the Nigerian Communications Commission, the National Bureau of Statistics, and the Central Bank of Nigeria to develop a more inclusive and comprehensive investment-tracking framework,” the body stated.

More insights 

The telecom operators disclosed that Mobile Network Operators, tower companies, and other players in the sector recorded total capital expenditure of N2.13 trillion in 2025.

According to the association, planned capital expenditure for 2026 currently stands at N1.86 trillion, with investments targeted at network expansion, infrastructure upgrades, technology improvements, and operational resilience.

ALTON noted that the sustained investments demonstrate that operators remain committed to supporting Nigeria’s digital economy aspirations despite economic pressures and forex challenges.

The association added that the investments were critical to maintaining service quality and expanding connectivity across the country.

ALTON attributed the sector’s improved investment capacity partly to the Federal Government’s approval of a 50% tariff increase in 2025.

According to the association, the tariff adjustment helped operators address revenue sustainability concerns and restore operational viability after a prolonged period of financial strain.

• “The timely intervention enabled operators to transition from financial distress to a sustainable, growth-focused model characterised by significant capital reinvestment,” the association stated.

ALTON also commended the Federal Government for policy interventions aimed at stabilising the telecom sector and boosting investor confidence.

What you should know

Despite the low underreported figure, the telecom industry was still among the top 10 sectors that attracted the most foreign inflow in Q1 2026.

Nigeria’s capital importation recorded a strong rebound in the first quarter of 2026, rising to $10.37 billion as foreign investors increased exposure to the country’s financial sector.

According to NBS, total capital importation grew by 83.83% year-on-year from $5.64 billion recorded in Q1 2025.

On a quarterly basis, inflows surged by 60.97% compared to $6.44 billion recorded in Q4 2025.

The sharp increase reflects renewed investor interest in Nigeria’s banking and financial services sectors amid ongoing banking recapitalization efforts, exchange rate reforms, and broader macroeconomic adjustments.

Telecommunications operators in Nigeria have fhave called for the adoption of a more inclusive approach to calculating investment inflows into the sector.

The operators under the umbrella of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) stated this in a statement released on Monday while reacting to the National Bureau of Statistics (NBS) Q1 2026 Capital Importation Report.

According to them, the $7.24 million foreign capital importation figure reported for the telecom sector did not reflect the reality of the investments that flowed into the sector in the period.

What they are saying 

According to the NBS Q1 2026 capital importation report, foreign capital inflows into the telecom sector declined sharply from $80.78 million recorded in 2025 to $7.24 million in Q1 2026.

However, ALTON said the sector continues to attract substantial investments through domestic funding channels, reinvested earnings, and other financing mechanisms that may not be fully captured under the current capital importation framework.

• “…this metric appears to capture only a portion of the total capital actively deployed within the sector.  
• “Our industry’s substantial Capital Expenditure (CAPEX) figures suggest that current investment derives from domestic capital sources, reinvested operational earnings – financial mechanisms that may not be fully reflected in conventional foreign capital importation metrics,” ALTON said.

The association argued that the sharp difference between reported foreign capital inflows and the actual infrastructure investments within the industry highlights a gap in the current investment reporting methodology.

• “To ensure Nigeria’s telecommunications sector investment profile is accurately represented, ALTON respectfully proposes a collaborative engagement among the Nigerian Communications Commission, the National Bureau of Statistics, and the Central Bank of Nigeria to develop a more inclusive and comprehensive investment-tracking framework,” the body stated.

More insights 

The telecom operators disclosed that Mobile Network Operators, tower companies, and other players in the sector recorded total capital expenditure of N2.13 trillion in 2025.

According to the association, planned capital expenditure for 2026 currently stands at N1.86 trillion, with investments targeted at network expansion, infrastructure upgrades, technology improvements, and operational resilience.

ALTON noted that the sustained investments demonstrate that operators remain committed to supporting Nigeria’s digital economy aspirations despite economic pressures and forex challenges.

The association added that the investments were critical to maintaining service quality and expanding connectivity across the country.

ALTON attributed the sector’s improved investment capacity partly to the Federal Government’s approval of a 50% tariff increase in 2025.

According to the association, the tariff adjustment helped operators address revenue sustainability concerns and restore operational viability after a prolonged period of financial strain.

• “The timely intervention enabled operators to transition from financial distress to a sustainable, growth-focused model characterised by significant capital reinvestment,” the association stated.

ALTON also commended the Federal Government for policy interventions aimed at stabilising the telecom sector and boosting investor confidence.

What you should know

Despite the low underreported figure, the telecom industry was still among the top 10 sectors that attracted the most foreign inflow in Q1 2026.

Nigeria’s capital importation recorded a strong rebound in the first quarter of 2026, rising to $10.37 billion as foreign investors increased exposure to the country’s financial sector.

According to NBS, total capital importation grew by 83.83% year-on-year from $5.64 billion recorded in Q1 2025.

On a quarterly basis, inflows surged by 60.97% compared to $6.44 billion recorded in Q4 2025.

The sharp increase reflects renewed investor interest in Nigeria’s banking and financial services sectors amid ongoing banking recapitalization efforts, exchange rate reforms, and broader macroeconomic adjustments.