Telecom Operators Challenge NBS Capital Importation Data

Telecommunications operators have questioned the accuracy of the $7.24 million foreign capital importation figure attributed to the sector by the National Bureau of Statistics (NBS) for the first quarter of 2026, arguing that the figure does not reflect the true scale of investments currently being deployed across the industry.

The operators, under the umbrella of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said the reported data captures only a fraction of the capital flowing into the sector and overlooks significant investments funded through domestic sources, reinvested earnings, and other financing structures.

The concerns were raised in a statement issued by the association in response to the NBS Capital Importation Report for the first quarter of 2026, which showed that foreign capital inflows into the telecommunications sector fell sharply from $80.78 million recorded in 2025 to $7.24 million during the review period.

ALTON maintained that despite the decline reflected in the report, telecommunications companies continue to commit substantial resources toward network expansion, infrastructure development, and service improvement across the country.

Read Also:

• euro-falls-below-n1585-amid-naira-rally
• cbn-introduces-n100m-forex-documentation-penalty

According to the association, the foreign capital importation metric appears to account for only a portion of the total investment actively deployed within the industry. It noted that the sector’s significant capital expenditure profile demonstrates that operators are increasingly relying on local funding channels and retained earnings to finance growth initiatives.

The association explained that substantial investments are being funded through domestic capital sources and reinvested operational income, financing mechanisms that may not be adequately reflected under conventional foreign capital importation measurements.

ALTON further argued that the stark contrast between the reported foreign investment figures and the actual infrastructure spending taking place within the telecommunications sector points to shortcomings in the current methodology used for tracking industry investments.

To address the issue, the association called for greater collaboration among regulators and relevant government agencies to establish a more comprehensive framework for measuring investments in the sector.

According to ALTON, a coordinated engagement involving the Nigerian Communications Commission (NCC), the National Bureau of Statistics, and the Central Bank of Nigeria (CBN) would help create a broader investment-tracking mechanism capable of capturing all forms of capital deployed within the telecommunications industry.

The operators stressed that such a framework would provide a more accurate representation of the sector’s investment profile and enhance understanding of the industry’s contribution to economic development.

Providing further insight into the scale of ongoing investments, ALTON disclosed that mobile network operators, tower companies, and other telecommunications service providers collectively recorded capital expenditure of approximately N2.13 trillion in 2025.

The association added that planned capital expenditure for 2026 currently stands at N1.86 trillion, with the funds earmarked for network expansion projects, infrastructure modernisation, technological upgrades, and measures aimed at strengthening operational resilience.

Industry players noted that these sustained investment commitments underscore the sector’s determination to support Nigeria’s digital transformation agenda despite prevailing economic challenges, including foreign exchange volatility and rising operating costs.

According to ALTON, the continued deployment of capital remains essential to maintaining service quality, improving network coverage, and expanding connectivity to underserved areas across the country.

The association also linked the industry’s improved capacity for investment to the Federal Government’s approval of a 50 per cent tariff adjustment in 2025.

It stated that the tariff review helped operators address concerns over revenue sustainability and provided much-needed relief after years of mounting financial pressures.

ALTON explained that the government’s intervention enabled operators to move from a position of financial distress toward a more sustainable operating model that supports growth and encourages capital reinvestment.

The association noted that the improved revenue outlook has strengthened operators’ ability to undertake critical infrastructure projects and continue investing in the expansion of telecommunications services nationwide.

In addition, ALTON commended the Federal Government for implementing policy measures aimed at stabilising the telecommunications sector and improving investor confidence.

Industry stakeholders believe that continued regulatory support and a more accurate measurement of sector investments will be critical to sustaining growth and ensuring the telecommunications industry remains a key driver of Nigeria’s digital economy.

The telecommunications sector remains one of the country’s most strategic industries, providing the infrastructure required for digital services, financial inclusion, e-commerce, and broader economic development. Operators insist that investment levels within the sector remain strong despite the decline reflected in official foreign capital importation data, and they have urged policymakers to adopt a more holistic approach to measuring capital flows into the industry.