Telecom Investments Decline Amid Negative Return on Capital

Telecommunication companies in Nigeria are facing a decline in investments due to negative returns on capital over the past 18 months. This financial strain, exacerbated by the naira’s sharp devaluation and rising inflation, has led to significant losses for major players like MTN Nigeria and Airtel Africa. The situation has caused concerns about deteriorating network quality and slower future investments, which could hinder the country’s digital infrastructure goals, including achieving 70% broadband penetration by 2025. Industry experts are calling for improved government policies and tariff adjustments to sustain the sector.