Fifth-generation (5G) technology rollout and investment in communication infrastructure increased foreign investments into the telecommunication sector by 129.21 percent in the first 11 months of 2022, a report on capital importation from the Central Bank of Nigeria has shown.

Capital importation into the telecom sector was $174.47million from January to November 2021. It jumped to $399.91million in the corresponding period of 2022.

This leap in investment came after the successful auctioning of 5G spectrums to MTN Nigeria and Mafab Communications Limited in December 2021.

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According to the GSMA, the global body for telcos, telcos would need to invest $500million and build 6,000 base stations to successfully roll out 5G in 10 top cities of the country.

In 2022, MTN Nigeria and Airtel Africa disclosed that they invested N613.13bn in infrastructure in that year.

This signified a 14.19 percent increase from the N536.91billion they both spent in 2021.

Telecom experts opine that, 5G is expected to headline network investment and drive foreign investment into the sector.

The Chief Operating Officer, Association of Telecommunication Companies of Nigeria, Ajibola Olude, said, “5G has contributed to this growth, which has led to increased investments.

“The rollout of 5G is driving investments, which are coming from abroad. The purchase of 5G investment is also driving growth.”

He also stated that several policies from the Federal Government and various state governments are attracting foreign investors to the sector.

He added, “You will see that the rate of data centres in Nigeria has astronomically increased, this is also responsible for great. There are a lot of opportunities in the digital economy, which is driving investors to make investments in the sector.

“Also, the sector has become the pride of the Nigerian economy which means that the adoption of communication and digital products has increased. Also, the return on investment is also responsible for this growth.”