Within the same period - January to November In 2021, the value of capital importation into the telecom sector was $174.47 million while a review of the corresponding period in 2022 saw the figures jump to $399.91 million.
The sudden leap in the value of foreign investments in the sector came after some players in the industry rolled out 5G technology in the country.
MTN Nigeria and Airtel Africa which are considered the big players in the industry had their investments in the sector increase to N613.13 billion in 2022. While MTN spent a total of N504.33 billion on the network rollout, Airtel’s investment hit N108.79 billion ($236m) for the same purpose.
When compared to the total value of the investment in the sector in 2021 which totaled N536.91 billion, the total investment in network rollout in 2022 from the two telecoms was 14.19 percent higher.
While speaking on the increased investment in the sector, the Chief Operating Officer, Association of Telecommunications Companies of Nigeria, Ajibola Olude, noted the huge part the launch of 5G has played in making the industry a lucrative one for foreign investment.
“The rollout of 5G is driving investments, which are coming from abroad. The purchase of 5G investment is also driving growth.”
He added, “You will see that the rate of data centres in Nigeria has astronomically increased, this is also responsible for great. There are a lot of opportunities in the digital economy, which is driving investors to make investments in the sector.
“Also, the sector has become the pride of the Nigerian economy which means that the adoption of communication and digital products has increased. Also, the return on investment is also responsible for this growth.”