Nigeria’s telecom sector attracts $191.5 million FDIs in Q1 2024 – NBS

Nigeria’s telecommunications sector attracted $191.5 million in Foreign Direct Investments (FDIs) in Q1 2024.

According to the National Bureau of Statistics (NBS), this represents a 769% increase compared to $22.05 million in Q1 2023 and a 738% rise from $22.84 million in Q4 2023. This growth marks a positive shift after years of declining investments.

The boost in investments is expected to aid Nigeria’s goal of achieving 70% broadband penetration by 2025.

Despite challenges such as naira devaluation impacting investment capacities, the sector’s growth aligns with the ongoing Nigeria National Broadband Plan (NBP 2020-2025).

Industry experts estimate that $3.4 billion is needed for fiber infrastructure to meet broadband targets.

In response to investment needs, the Nigerian government launched a Special Purpose Vehicle (SPV) to build 90,000km of additional fiber optic cable.

This project aims to enhance internet connectivity, increase penetration to over 70%, and reduce internet costs by over 60%.

It is also projected to contribute to GDP growth, potentially raising it from $472.6 billion in 2022 to $502 billion over the next four years.