₦1.62trn Telecom Investment: Analysts Warn of Economic Cost of Network Disruptions

According to data cited during the session, the telecommunications sector contributed 9.19 per cent to Nigeria’s Gross Domestic Product (GDP) in the first quarter of 2026

₦1.62trn Telecom Investment: Analysts Warn of Economic Cost of Network Disruptions

Financial analysts have warned that disruptions to telecommunications services could have wider economic consequences as Nigerian businesses, Point-of-Sale (POS) operators, remote workers and other income earners increasingly depend on reliable connectivity.

They spoke during an economic dialogue hosted by financial planner Kalu Aja and chartered accountant Oluaseinde Olaseinde, founder of digital wealth platform Ladda, where they examined the impact of corporate investments on businesses and households.

According to data cited during the session, the telecommunications sector contributed 9.19 per cent to Nigeria’s Gross Domestic Product (GDP) in the first quarter of 2026, reflecting the growing role of connectivity in economic activity.

Olaseinde said reliable connectivity had enabled many small businesses to operate without conventional offices, with some generating millions of naira in monthly revenue through digital platforms.

“Businesses can operate digitally. I see people making crazy revenue—I’m hearing companies doing ₦10 million per month, ₦50 million per month. They do not have a physical office. All they do is sit on social media, leveraging data to be connected and run businesses,” she said.

She added that connectivity was also supporting financial technology, remote work and online education, noting that people in Lagos could work for clients in Nairobi, New York and London, while online tutors could teach students in different cities and countries.

Olaseinde said the impact extended to financial inclusion, citing a business with more than 75,000 users who could download its application through mobile data to save and invest.

Aja, meanwhile, highlighted the role of digital connectivity in supporting Nigeria’s growing agency banking ecosystem.

He cited figures from Guaranty Trust Holding Company (GTCO), saying its HabariPay and Squad platforms processed ₦80.9 trillion in transactions in 2025, supported by more than 200,000 POS terminals.

“When you see a POS machine, that’s a person and a family with a job in Nigeria,” Aja said.

He argued that the widespread use of POS terminals showed how corporate infrastructure and investment could support livelihoods beyond the companies that owned the platforms.

“For every one naira Dangote Industries earns, 52 kobo goes to the government in taxes. If that all goes away, it’s a massive hole nobody can fill,” Aja said.

He also pointed to MTN Nigeria’s cumulative capital expenditure of ₦1.62 trillion, which he said covered infrastructure including fibre-optic backbones, base stations, spectrum and power generation.

“In every local government area in Nigeria there is an MTN somewhere. You’ll either find a tower or you’re going to find someone selling recharge cards. That’s the depth and level of their contribution to Nigeria so far,” he said.

The analysts also discussed the role of corporate companies in public infrastructure through the Federal Government’s Road Infrastructure Tax Credit Scheme.

According to Aja, Dangote Industries paid ₦900 billion in taxes and ₦753 billion in dividends in 2025, while MTN deployed tax credits toward construction of the Onitsha-Enugu Expressway.

They also linked corporate performance to household wealth through dividend payments and retail investment.

Aja said GTCO returned ₦466 billion in dividends and paid ₦365 billion in taxes in 2025, while MTN Nigeria distributed ₦419.9 billion to shareholders and paid ₦429 billion in statutory taxes.

Olaseinde recalled participating in MTN’s 2019 initial public offering, saying the offer attracted significant retail participation.

“The price was about ₦160 thereabouts. The last time I checked, it had kissed ₦800,” she said, adding that her dividend from the company had reached ₦1.2 million during the period under review.

“Knowing that my money can work for me while I sleep—I’m not just consuming. I’m also part owner,” she said.

The analysts also stressed the difference between foreign portfolio investment and longer-term foreign direct investment.

“FPI (Foreign Portfolio Investment) is like a one-night stand. FDI (Foreign Direct Investment) is like a marriage,” Olaseinde said, arguing that companies making long-term investments create jobs and maintain a more sustained presence in the economy.

Aja said maintaining such investment was important because disruptions to corporate infrastructure could affect jobs, government revenue and digital economic activity.

“Without these investments, the jobs go, the 52 kobo tax revenues go, and the digital economy that keeps millions off the street goes dark. Corporate Nigeria is the scaffold holding the rest together,” he said.