In the third quarter of 2023, Nigeria’s telecommunications sector attracted $64 million in Foreign Direct Investments (FDI), as revealed by recent data released by the National Bureau of Statistics (NBS).
This figure marks a substantial 158% increase from the sector’s recorded investments of $25.81 million in Q2.
However, when compared to the same period in 2022, there was a 17% decrease in Q3 2023, where investments totaled $77.26 million.
Over the initial three quarters of the year, the telecom sector accumulated a total of $111.91 million in foreign investments, based on the NBS capital importation data. Yet, this might indicate a potential decline in FDIs for the year, considering that the full-year 2022 figure stood at $456.83 million.
Engr Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), highlighted the challenge of multiple taxation in the industry as a major deterrent to further investments.
He emphasized that telecom operators contend with 39 different taxes and levies imposed by various levels of government, creating an uncertain tax regime that complicates planning and forecasts for industry players. Adebayo also noted that potential investors closely observe these factors, influencing their decision-making as they monitor the situation.
