Telecom Investment Soars From $500m to $75bn Over 25 Years, Rewane Says

By Benson Daniel

Nigeria’s telecommunications sector has attracted about $75 billion in investment over the past 25 years, rising sharply from an estimated $500 million at the beginning of the sector’s liberalisation, according to economist Bismarck Rewane.

Rewane, Managing Director of Financial Derivatives Company and Chairman of FCMB, highlighted the scale of investment while reflecting on the transformation of Nigeria’s telecommunications industry.

The growth represents a major expansion in the financial resources committed to building and operating telecommunications infrastructure across the country. The sector has evolved from limited connectivity at the beginning of the mobile telecommunications era into one of Nigeria’s largest and most important parts of the modern economy.

Telecommunications investment has supported the expansion of mobile networks, broadband infrastructure, data services and other digital technologies, increasing access to communication services for individuals and businesses.

The sector has also become increasingly important to economic activity. Reliable telecommunications infrastructure enables businesses to communicate with customers and suppliers, process digital transactions, provide online services and participate in the growing digital economy.

The expansion has created opportunities beyond the major telecommunications operators, supporting businesses involved in infrastructure deployment, equipment supply, digital services, fintech, software and other technology-related activities.

For consumers, increased investment has contributed to wider access to mobile communication and internet services, while competition among operators has expanded the range of services available in the market.

The telecommunications industry has also become a significant contributor to government revenue and economic output, while providing direct and indirect employment across different segments of the economy.

Rewane’s assessment underscores the scale of the transformation that has taken place since Nigeria opened the sector to greater private investment. The increase from $500 million to $75 billion illustrates how sustained capital investment can reshape a strategic sector and create an infrastructure base for wider economic activity.

However, continued investment will be important as demand for data, broadband connectivity and digital services grows. Businesses and consumers increasingly depend on reliable networks for financial transactions, commerce, education, communication and other daily activities.

The telecommunications sector is consequently positioned to remain an important driver of Nigeria’s digital transformation, with further investment expected to be necessary to expand coverage, improve service quality and support emerging technologies.