•Telecom sector receives $392.9 million
Nigeria attracted $16.78 billion in total capital importation in the first nine months of 2025, representing a 132 per cent year-on-year increase from $7.23 billion recorded in the corresponding period of the previous year.

The $16.78 billion inflow marked the highest level recorded in the post-COVID era, reinforcing the narrative that Nigeria has regained relevance within frontier market allocation frameworks.

Analysts at Cowry Research described the rebound in capital importation as a reflection of improving macroeconomic sentiment, noting that stabilising foreign exchange rates, easing inflationary pressures since January 2025 and ongoing policy reforms have collectively strengthened investor confidence and repositioned Nigeria as an attractive destination for portfolio inflows.

The firm, however, cautioned that the heavy concentration of short-term foreign portfolio investments highlights underlying structural vulnerabilities within the economy. According to Cowry Research, reliance on relatively volatile capital flows leaves the country exposed to external shocks.

It warned that any sharp shift in global risk appetite, escalating geopolitical tensions or a resurgence of trade protectionism, particularly under the tariff-driven posture of Donald Trump, could quickly reverse the gains recorded.

To ensure sustained momentum and attract more stable, long-term capital, Cowry emphasised the need for deeper structural reforms, improved security conditions, and the preservation of a stable, transparent, and credible macroeconomic framework.

The surge in inflows is closely tied to Nigeria’s high-interest-rate environment, strong capital market performance and elevated returns across money market instruments.

Persistent double-digit inflation prompted the Central Bank of Nigeria (CBN) to raise the benchmark rate to a high level, thereby enhancing nominal yields and strengthening carry trade attractiveness relative to comparable markets.

Improved exchange rate stability has been a critical enabling factor.

More coherent FX reforms by the CBN have narrowed the disparity between the official and unofficial markets, enhanced price discovery and reduced convertibility risk.

The resulting currency stability has helped to restore investor confidence and reduce the perception of repatriation constraints, which historically discouraged foreign participation.

A breakdown of the $16.78 billion total capital imported during the nine months reveals that portfolio investments dominated the inflow composition, accounting for 85 per cent ($14.26 billion).

This was largely driven by inflows into money market instruments valued at $10.75 billion, reflecting a strong appetite for high-yield short-term assets in a double-digit inflation environment.

Bond inflows amounted to $2.92 billion, while equities attracted $591 billion.

Other investments, comprising loans and related claims, accounted for $1.95 billion, representing 11.64 per cent of total capital inflows.

There was a leap in foreign direct investment (FDI) flow into Nigeria’s telecommunications sector in the third quarter of 2025.

The latest capital importation data by NBS showed that FDI into the telecom sector rose to $208.51 million in Q3, a dramatic increase from $14.74 million recorded in Q3 of 2024, representing more than a fourteenfold year-on-year jump.

The development signalled renewed investor interest after a weak performance in the corresponding period of 2024.

FDI flow into the sector stood at $80.78 million in Q1 before rising to $103.63 million in Q2, culminating in the stronger Q3 performance.

Within the first nine months of the year, the sector attracted $392.92 million, a moderate rise from $319.72 million recorded in the same period of 2024.

Further analysis of the data showed that capital importation into telecoms reached $191.57 million in Q1 2024, dropped to $113.42 million in Q2 and collapsed to $14.74 million in Q3.

The sharp recovery in Q3 2025 therefore marked a reversal of the slump seen a year earlier, though inflows have yet to return to the peak levels recorded in early 2024.

Analysts believed that recent developments in the sector might have triggered this level of investment. This includes the Nigerian Communications Commission (NCC) approved 50 per cent tariff adjustment of January 20, 2025, coming 11 years after the last hike.

The Executive Vice Chairman of NCC, Dr Aminu Maida, had disclosed that some regulatory interventions triggered fresh investment of about $1 billion into the sector by the telcos after getting the tariff hike.

The investment, according to Maida, was to ensure upgrades of existing telecom infrastructure, expansion into new areas, and deployments of 4G and 5G networks.

According to the Association of Telecommunications Companies of Nigeria (ATCON), the tariff adjustment spurred operators to re-invest the additional revenue into enhancing network quality, expanding digital access, and delivering a better customer experience.

The association stressed that these investments would translate into improved connectivity, wider coverage, and innovative solutions designed to meet the evolving needs of Nigerians.