5G, others raise telecoms investment by 273%

In the first half of 2022, investment in the sector increased by 273.16 percent year over year to $211.29 million thanks in part to 5G and new telecommunications technology.

The National Bureau of Statistics’ figures on capital imports supports this. $56.62 million was invested in the sector in the first half of 2021, with the second quarter receiving the most attention with $342,105.

A source from the Association of Licensed Telecommunication Operators of Nigeria at the time attributed the decline in capital inflows into the industry to a lack of foreign currency and contradictory government policy.

The source said, “The lack of forex has impacted how we can import equipment into the country. This has reduced investments too.

“There is also the issue of end-user certificates. This is so because for us to import some equipment into the country, we need the certification of the security agencies, especially the National Security Adviser’s office.”

However, telecoms have expanded investment in the area due to the anticipated launch of 5G services in August and a boom in Internet demand in the country. The Global System for Mobile Communications Association estimates that telcos would require $500 million and 6,000 base stations to build out 5G in the nation’s top 10 cities.