Foreign direct investment (FDI) into Nigeria’s telecommunications sector rebounded strongly in the third quarter of 2025, according to the latest data from the National Bureau of Statistics (NBS). Capital inflows into telecoms rose to $208.51 million in Q3 2025, a dramatic increase from just $14.74 million in the same period last year—marking more than a fourteenfold surge. The numbers signal renewed investor confidence after a notably weak performance in Q3 2024.
Earlier in 2025, telecom FDI showed steady growth, rising from $80.78 million in Q1 to $103.63 million in Q2, before reaching the robust Q3 figure. This contrasts with 2024, which started strong at $191.57 million in Q1 but experienced a sharp decline to $14.74 million by Q3. On a cumulative basis, the sector attracted $392.92 million between January and September 2025, a 23% increase over the $319.72 million recorded in the same period in 2024, suggesting a recovery in overall foreign investment momentum.
Industry experts attribute the uptick in investment to regulatory adjustments, exchange rate reforms, and rising demand for digital services across the country. In January 2025, the Nigerian Communications Commission (NCC) approved a 50% tariff adjustment for telecom operators, aimed at offsetting rising operational costs. According to the Association of Telecommunications Companies of Nigeria (ATCON), the additional revenue is being reinvested into network improvements, wider coverage, and innovative solutions designed to enhance customer experience.
Despite this positive trend, analysts caution that investment in Nigeria’s telecom sector remains volatile and insufficient for large-scale infrastructure development. The country missed its 70% broadband penetration target in December 2025 due to challenges such as limited fibre rollout, high right-of-way charges, and power constraints. Achieving nationwide high-speed connectivity, including 5G expansion and rural coverage, will require sustained capital investment in the billions.
Telecom infrastructure is inherently capital-intensive, with operators navigating rising costs from currency depreciation, diesel prices, security concerns, and import duties on equipment. Nonetheless, the Q3 2025 rebound highlights a growing recognition among foreign investors that Nigeria’s telecom market remains a high-potential opportunity, particularly as demand for data and digital services continues to rise across the nation.
source: nairametrics