Telecom Operators Dispute NBS Data as Foreign Investment Hits Four-Year Low

Telecom Operators Dispute NBS Data on $7.24M Foreign Investment

Global • Tue Jun 09 2026 • By Starkid

ABUJA — Nigerian telecommunications operators have formally challenged recent data released by the National Bureau of Statistics (NBS), which indicated that the sector attracted only $7.24 million in foreign capital during the first quarter of 2026.

Industry stakeholders, led by the Association of Licensed Telecommunications Operators of Nigeria (ALTON), argue that the NBS figures provide a misleading picture of the sector’s health, failing to capture the massive scale of domestic investment currently driving network expansion.

The Data Discrepancy

The NBS Capital Importation Report for Q1 2026 revealed a stark 91% year-on-year decline in foreign investment for the telecom sector, falling from $80.78 million in the first quarter of 2025 to just $7.24 million.This figure represents a meager 0.07% of the total $10.37 billion in capital imported into Nigeria during the period.

However, operators contend that the NBS methodology relies on a narrow definition of capital importation that misses the complexity of modern telecom financing. ALTON officials stated that the reported figure fails to account for several critical funding channels:

Domestic Capital & Reinvested Earnings: A significant portion of network expansion is now funded internally through operational revenue and local financing.
Vendor-Backed Financing: Much of the infrastructure deployment is supported by equipment vendors via offshore credit arrangements that are not reflected in standard capital inflow metrics.
Infrastructure Capex: Operators recorded a total capital expenditure (CAPEX) of ₦2.13 trillion in 2025, with an additional ₦1.86 trillion planned for 2026, figures the industry says clearly demonstrate sustained, robust investment.

Macroeconomic Pressures vs. Regulatory Gains

The dispute comes against the backdrop of a challenging economic environment. While the Nigerian Communications Commission (NCC) approved a 50% tariff adjustment in January 2025 designed to boost cash flows and stimulate infrastructure upgrades operators continue to grapple with severe headwinds:

Rising Costs: Soaring energy prices and high inflation continue to exert pressure on operational margins.
FX Volatility: Exchange-rate instability has complicated long-term foreign investment planning.
Investor Preference: Analysts note that while Nigeria’s total capital importation surged to $10.37 billion in Q1 2026, over 95% of that was in portfolio investments short-term financial instruments rather than "patient capital" required for long-term infrastructure projects like fiber networks and data centers.

A Call for Broader Context

ALTON acknowledged the importance of accurate data for investor perception but stressed that the NBS figures need broader context. "While we recognize the importance of accurate data... our industry's substantial CAPEX figures suggest that current investment derives from domestic capital sources and reinvested earnings financial mechanisms that may not be fully reflected in conventional foreign capital importation metrics," the association said in a recent statement.

As the government and industry leaders navigate these reporting differences, the debate highlights a critical question for Nigeria’s digital economy: how to accurately measure the investment required to sustain the country’s growing demand for data services amidst a complex and shifting macroeconomic landscape.