This study investigates the relationship between physical espionage and competitiveness among Nigerian telecommunication firms, specifically MTN, GLO, and Airtel. Despite substantial investments in digital infrastructure, Nigerian telecom firms continue to suffer security lapses that compromise business continuity and competitive positioning through unauthorized physical access to facilities, data centres, and restricted operational areas. Adopting a descriptive survey research design, primary data were collected through structured questionnaires administered to 245 respondents across operational centres in Edo State, Nigeria. The study employed Crime Prevention Through Environmental Design (CPTED) Theory as its theoretical framework, positing that environmental design and management of physical spaces significantly influence espionage prevention and organizational competitiveness. Statistical analysis employed Pearson Product Moment Correlation. Findings revealed a weak but statistically significant positive relationship between physical espionage and competitiveness (r = 0.137, p = 0.032), indicating that unauthorized physical access to facilities and sensitive infrastructure subtly undermines firms’ competitive positioning. Descriptive analysis showed high mean scores for physical espionage (M = 3.77, SD = 1.11), with 71.4% of respondents acknowledging tampering or theft of sensitive documents, while 67.4% recognized that espionage threats affected competitive advantage. The study concludes that despite technological advancements, physical security breaches remain relevant threats to corporate performance in Nigeria’s telecommunications sector. Recommendations include enhanced biometric access controls, comprehensive surveillance systems, robust visitor management protocols, and integration of CPTED principles into organizational security architecture to safeguard sustainable competitive advantage. 

Keywords: Physical Espionage, Competitiveness, Telecommunications, Corporate Security, Crime Prevention Through Environmental Design, Nigeria.