Connect with us


Foreign capital flows into telecoms sector tumble by 70%



Foreign capital flows into the Nigerian telecommunications sector shrank by 70.5 per cent to $107.46m in nine months last year, compared to the same period of 2020.

Data obtained from the National Bureau of Statistics’ reports on capital importation showed that the foreign capital inflows stood at $364.3m from January to September 2020.

According to the NBS, capital importation data is obtained from the Central Bank of Nigeria and is inclusive of imported physical capital, such as equipment, and financial capital importation.

It added that capital importation is divided into three main investment categories: foreign direct investment, portfolio investment, and other investments.

Capital importation into the telecoms sector fell from $157.48m in first quarter of 2020 to $105.64m in Q2 and $101.18m in Q3.

In Q1 2021, foreign capital flows into the sector plunged from $56.28m in Q1 2021 to $0.34m in Q2 but rose to $50.84m in Q3.

The Minister of Communications and Digital Economy, Isa Pantami, recently described the Information Communication Technology sector as an important catalyst for the diversification and growth of the economy.

Going by recent developments in the sector, capital inflow is expected to increase as investments are directed towards increasing broadband penetration in the country.

MTN recently committed to invest N640bn (about $1.5bn) over the next three years to expand broadband access in Nigeria.

The Nigerian Communications Commission auctioned in December two of its available lots of 100 MHz TDD slots of 3.5 GHz band for the deployment of fifth-generation network for $547m.

According to the Global System for Mobile Communications Association, $500m and 6000 base stations will be needed for 5G rollout in 10 cities in Nigeria, driving the inflow of capital into the sector.

A source in the Association of Licensed Telecommunication Operators of Nigeria blamed the fall in capital inflows on the scarcity of foreign exchange, and government policy.

The source said, “Lack of forex has impacted on how we can import equipment into the country. This has reduced investments too. There is also the issue of end-user certificate. Because for us to import some equipment into the country, we need the certification of the security agencies, especially the National Security Adviser’s office.

Copyright PUNCH.

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

Contact: [email protected]

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Politics23 hours ago

APC to decide my presidential ambition ― Ayade

News24 hours ago

Music producer Magix Enga claims he joined illuminati at 23

Entertainment20 hours ago

“Davido is too kind to people” – Bobrisky praises the singer as he shares encounter with him

Local15 hours ago

Court orders ICPC to pay civil servant N10 million damages for malicious prosecution

Politics14 hours ago

Lagos/Ibadan Expressway kidnappings: Evidence govts have failed in their primary duties ― Afenifere

Politics17 hours ago

Lagos acquires new two sets 10-car intra-city metropolitan trains for red line rail project

News16 hours ago

Pictorial: Sanwo-Olu inspects newly acquired speed trains

Business News16 hours ago

Senate Pass Bill to Establish National Rice Development Council

Sports21 hours ago

Steven Gerrard Is Looking To Reunite With Luis Suarez

Entertainment23 hours ago

“Never lose weight to keep a man, it takes a real man to love a fat woman” – Comedian, Lepacious Bose tells plus-size ladies

Politics16 hours ago

Defection: Gov Umahi, deputy know fate March 8

News9 hours ago

Nigeria passengers face hitches as airlines suspend US flights over 5G rollout

Business News20 hours ago

Senate Re-amends Electoral Bill, Okays Direct, Indirect, Consensus Primaries

Entertainment16 hours ago

Couple arrested for invading their child’s school with thugs to beat teacher

Sports23 hours ago

Barcelona Have Been Offered A Lengthy List Of Players To Sign Either This Month Or In The Summer

Relationship19 hours ago

Suidooster Teasers – February 2022

Politics15 hours ago

Petrol pump price not increased to N302 per litre ― Presidency

World13 hours ago

Texas synagogue jihadi ‘literally thought that Jews control the world’

Sports22 hours ago

Jules Koundé Has Hit Out A Sevilla Supporter Over His Injury Situation

News9 hours ago

Humanitarian worker lures Borno 14-year-old IDP, rapes girl, victims stabs self, dies