Nigeria’s telecommunications sector attracted a total of 991 million dollars in foreign direct investment, FDI, between 2022 and 2024, highlighting sustained investor interest in the industry despite regulatory reforms and recent adjustments in subscriber data.
This was disclosed in a report prepared by the Nigerian Communications Commission, NCC, using data sourced from the Central Bank of Nigeria, CBN. According to the report, foreign investment inflows into the telecoms industry stood at 399.906 million dollars in 2022, dropped to 134.755 million dollars in 2023, and rose significantly to about 456.590 million dollars in 2024.
The NCC report shows that while investment flows fluctuated within the three-year period, the overall trend reflects continued confidence in Nigeria’s telecom market, which remains one of the largest in Africa. Industry analysts say the rebound in FDI recorded in 2024 suggests renewed optimism by foreign investors, driven by data demand growth, expanding digital services and ongoing network upgrades.
The data was compiled by the Policy, Competition and Economic Analysis Department of the NCC as part of its Subscriber and Network Performance Report. The report also provides insights into internet usage, broadband penetration and network coverage across the country.
According to the NCC, the number of internet subscribers in Nigeria increased from 154.848 million subscriptions as of December 2022 to 163.838 million subscriptions by December 2023. This represents an increase of 5.81 per cent, with an additional 8.991 million internet subscriptions recorded within the period.
The growth in internet subscriptions during 2023 was attributed to increased reliance on digital platforms for communication, commerce, entertainment and public services. Telecom operators have continued to expand their data offerings, while more Nigerians are adopting smartphones and internet-enabled devices.
However, the report also showed a decline in broadband penetration during the same period. Broadband penetration dropped from 47.36 per cent as of December 2022 to 43.71 per cent as of December 2023. Despite this decline, broadband subscriptions actually increased from 90.399 million subscriptions in December 2022 to 94.757 million subscriptions by December 2023.
The NCC explained that the decline in broadband penetration rate was not due to a drop in broadband usage but was largely the result of an adjustment made to the population figure used in calculating the indicator. The Commission said the revised population estimate affected the percentage penetration rate, even though the absolute number of broadband subscribers increased.
By December 2024, the sector recorded a significant adjustment in total active internet subscriptions. The NCC report showed that active internet subscriptions declined from 163.838 million in December 2023 to 139.282 million subscriptions as of December 2024. This represents a decrease of 14.98 per cent, translating to a drop of 24.556 million subscriptions within one year.
According to the Commission, the reduction in active subscriptions was largely due to the effective implementation of the National Identity Number and Subscriber Identity Module linkage policy, commonly known as the NIN-SIM policy. The NCC noted that the enforcement of the policy led to the deactivation of improperly registered or unlinked SIM cards across mobile networks.
In addition, the report stated that the rectification of subscriber counts by a major Mobile Network Operator also contributed to the decline. The Commission said the clean-up exercise was necessary to ensure accurate and reliable industry data, improve security, and strengthen regulatory oversight.
On broadband development, the NCC said network coverage continued to improve across the country. According to the report, 3G, 4G and 5G coverage levels stood at 89 per cent, 84 per cent and 13 per cent respectively as of 2024. The Commission noted that improved coverage has supported gradual growth in broadband penetration.
As a result, broadband penetration increased slightly from 43.71 per cent in December 2023 to 44.43 per cent as of December 2024. The NCC described the growth as marginal but steady, reflecting ongoing investments by operators in network expansion and capacity upgrades.
Industry stakeholders say the telecom sector remains a critical driver of Nigeria’s digital economy. Beyond voice and data services, telecom infrastructure supports fintech services, e-commerce, digital education, health technology and government digital platforms. As such, sustained investment in the sector is seen as essential for broader economic growth.
The nearly one billion dollars in FDI recorded over the three-year period comes amid regulatory reforms aimed at improving transparency, security and service quality. While policies such as the NIN-SIM linkage initially affected subscriber numbers, regulators argue that the long-term benefits include better data integrity, improved national security and a more sustainable telecom ecosystem.
Experts note that Nigeria’s large population, growing youth demographic and increasing demand for data services continue to make the telecom sector attractive to foreign investors. However, they also point to challenges such as high operating costs, foreign exchange pressures, energy supply issues and multiple taxation, which operators must navigate.
The NCC has maintained that it will continue to engage with industry players to create a stable and investor-friendly regulatory environment. The Commission says its focus remains on expanding broadband access, improving quality of service and supporting innovation across the telecom value chain.
As Nigeria pushes forward with its digital transformation agenda, the performance of the telecom sector and its ability to attract sustained foreign investment are expected to remain key indicators of progress. The NCC report suggests that despite short-term adjustments, the fundamentals of the sector remain strong.
