…ALTON flags high RoW charges, taxes as key drivers of telecom investment decline
Foreign Direct Investment (FDI) into Nigeria’s telecommunications sector dropped by 58 percent year-on-year to $80.78 million in the first quarter (Q1) of 2025, the National Bureau of Statistics (NBS) has revealed.
The latest capital importation report by the NBS, the telecoms industry attracted $191.57 million in Q1 2024, indicating a significant decline in investor confidence in just one year.
On a quarter-on-quarter basis, the decline was also steep. Capital importation into the sector fell by 41 per cent when compared to the $136.86 million recorded in Q4 2024.
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The drop in foreign inflow contrasts sharply with the broader trend across the Nigerian economy. Overall capital importation into the country rose to $5.6 billion in Q1 2025, marking a 67.12 per cent increase from the $3.4 billion recorded during the same period last year.
Industry analysts have attributed the downturn in telecom investment to persistent structural and regulatory challenges. These include insecurity, vandalism of telecom infrastructure, multiple taxation, high Right of Way (RoW) charges, and general macroeconomic instability.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) noted that despite several calls for reform, major hurdles still remain in the sector.
“We may not see a steady growth in investments until the industry challenges are addressed. Issues of Right of Way charges are still there, likewise multiple taxation, which continue to discourage investors,” ALTON said in a recent statement.
Telecom operators have long complained about the burden of paying various levies at federal, state, and local government levels, as well as difficulties in accessing and securing RoW for infrastructure rollout.
The capital flight also raises concerns about the ability of the telecom sector, one of Nigeria’s most critical infrastructure industries, to sustain its growth trajectory, expand 4G/5G networks, and meet rising consumer demand.
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With the sector playing a vital role in driving digital transformation, financial inclusion, and national productivity, stakeholders have called on the government to urgently address the policy and security-related barriers that continue to hamper investor confidence.
