Telcos Dispute NBS Report on Foreign Capital Inflows and Urge Better Investment Reporting Framework

Telecom operators in Nigeria, represented by the Association of Licensed Telecoms Operators of Nigeria (ALTON), have formally rejected the National Bureau of Statistics’ (NBS) Q1 2026 Capital Importation Report on the telecommunications sector.

The NBS report recorded a steep fall in foreign capital inflows to the sector, dropping from $80.78 million in 2025 to $7.24 million in the first quarter of 2026. ALTON argues that the metrics used by NBS capture only a fraction of the capital actually deployed within the industry.

In a statement signed by Chairman Gbenga Adebayo and Publicity Secretary Damian Udeh, ALTON called for a joint effort among the Nigerian Communications Commission (NCC), NBS, and the Central Bank of Nigeria (CBN) to create a more inclusive and comprehensive investment‑tracking framework.

According to the statement, a transparent investment profile that reflects the sector’s substantial annual capital commitments would better position Nigeria as a credible and attractive destination for telecommunications investment, inform sound policy development, and sustain investor confidence.

The statement noted that the gap between reported foreign capital inflows and actual infrastructure investment highlights a deficiency in how sectoral capital deployment is currently measured and reported.

The statement read, in part, “Our industry’s substantial Capital Expenditure (CAPEX) figures suggest that current investment derives from domestic capital sources, reinvested operational earnings – financial mechanisms that may not be fully reflected in conventional foreign capital importation metrics.”

“We commend the ongoing efforts to monitor investment flows across critical sectors of the Nigerian economy. We recognise the importance of accurate data in shaping investor perceptions and guiding policy decisions, and we believe that additional context regarding the telecommunications sector’s current investment landscape will provide stakeholders with a more comprehensive understanding of the industry’s health and trajectory.”

Commending the federal government for the 50 percent tariff increase approved for the telecom sector last year, the statement added, “ALTON wishes to express sincere appreciation to the federal government for the strategic 50 percent tariff increase approved in 2025, which played a pivotal role in stabilising the telecommunications sector, addressing critical revenue sustainability gaps, and restoring operational viability during a particularly challenging period.”

“The timely investment enabled operators to transition from financial distress to a sustainable, growth‑focused model characterised by significant capital reinvestment.”

ALTON added, “The sector’s recovery is reflected in sustained capital deployment. In 2025, Mobile Network Operators, Tower Companies and other players in the sector recorded a total capital expenditure of N2.13 trillion, with planned capital expenditure of N1.86 trillion for 2026, directed towards network infrastructure expansion, technology enhancements, and essential operational investments critical to maintaining service quality and coverage.”

“The commitments are fundamental to advancing Nigeria’s digital economy objectives and improving services for millions of subscribers nationwide.”

ALTON stated, “We remain committed to working collaboratively with regulatory authorities and government institutions to ensure the sector’s contributions to national development are comprehensively documented and appropriately recognised.”

“We wish to assure the Nigerian public that telecommunications operators remain committed to continuous investment in network expansion, modernisation, resilience, and service quality improvements.”