Nigeria’s telecommunications industry has witnessed a remarkable resurgence in foreign investment, signaling renewed confidence from global investors after a period of sluggish growth. Recent figures from the National Bureau of Statistics (NBS) reveal that Foreign Direct Investment (FDI) into the sector soared in the third quarter of 2025, reaching $208.51 million—a staggering rise from $14.74 million in the same quarter of 2024. This represents more than a fourteenfold year-on-year increase, or a 1,314.59 percent jump.
The figures underscore a sharp turnaround from the weak performance observed in Q3 2024. Investment trends earlier in 2025 already hinted at this recovery, with capital inflows totaling $80.78 million in Q1 and rising to $103.63 million in Q2, culminating in the dramatic third-quarter surge.
Cumulatively, from January to September 2025, Nigeria’s telecoms sector attracted $392.92 million in FDI, surpassing the $319.72 million recorded in the same period the previous year. This 22.9 percent increase highlights a steady improvement in foreign investment momentum despite quarterly fluctuations.
Comparing the previous year, capital inflows into telecoms had started strong in Q1 2024 at $191.57 million, but dropped sharply to $113.42 million in Q2 and collapsed to $14.74 million in Q3. The sharp recovery in Q3 2025, therefore, marks a significant reversal, although levels have not yet returned to the peaks of early 2024.
Analysts point to regulatory developments as key drivers of the renewed investment. In January 2025, the Nigerian Communications Commission (NCC) implemented a 50 percent tariff adjustment, the first increase in 11 years. Dr. Aminu Maida, Executive Vice Chairman of NCC, noted that the move spurred telcos to commit approximately $1 billion toward upgrading infrastructure, expanding service areas, and deploying advanced 4G and 5G networks.
The Association of Telecommunications Companies of Nigeria (ATCON) highlighted that operators are reinvesting additional revenue from the tariff adjustment into enhancing network quality, broadening digital access, and improving overall customer experience. According to the association, these investments are expected to translate into better connectivity, wider coverage, and innovative solutions tailored to the evolving needs of Nigerians.
The surge in FDI underscores a pivotal moment for Nigeria’s telecoms industry, reflecting both the resilience of the sector and the growing appetite of foreign investors for a market poised for technological expansion and long-term growth.