Nigerian Telecoms Sector Achieves 165% Growth in Q2

This figure surpasses the income the sector made in 2021 and is also the highest inflow in the sector in the last six quarters.

Nigeria’s telecommunications sector witnessed a growth of 165% in the second quarter of 2022 as the sector attracted a total of $153.5 million capital importation during the period in review

The telecoms sector in 2021, recorded an income of $107.46 million, an amount which has increased in 2022 as the sector has continued to attract more innovations and improvements over the past months.

Although the income expectations of the sector are laudable, it still fails to meet the expected target set for it as the lack of critical infrastructure like fibre optics has continued to impede the smooth sail of the Nigeria National Broadband Plan (NBP 2020-2025)

It has been reported that the sector still requires about $3.4 billion in investments in fibre infrastructure to meet this national broadband target of 70% penetration by 2025.

Despite the increased income, the foreign interest in the sector is still not huge enough to cause certain positive disruptions in the sector.

While the interest of foreign investors has been noticed to have dwindled, industry experts have also cited some factors responsible for the slow growth in the sector.

For Mr. Olusola Teniola, the immediate past president of the Association of Telecommunications Company of Nigeria (ATCON) the presence of a conductive and attractive industry would definitely create a lasting impression on investors.

According to him “One of the things we need to do continuously is to ensure that we make our industry attractive to Foreign Direct Investment (FDI) by ensuring we have a very conducive and stable environment. 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.”

One other factor that was picked as a hindrance to foreign investment in the sector is the high cost of doing business in Nigeria. According to Engr. Ikechukwu Nnamani who is the current ATCON President, investors would always look for markets where there is an ease of doing business and where their returns on investments are guaranteed.