In a significant push to expand connectivity and attract telecommunications investment, seven Nigerian states—Zamfara, Katsina, Anambra, Kebbi, Nasarawa, Bauchi, and Adamawa—have waived right-of-way (RoW) fees, a notable development aimed at reducing operational barriers for telecom operators. Right-of-way fees, a charge levied by state governments to allow the installation of telecom infrastructure like fiber optic cables, have long been a point of contention due to inconsistency in charges and their impact on network expansion.
Impact of Right-of-Way Fees on Internet Access
Telecom operators often face barriers due to inconsistent RoW fees, which vary significantly across states despite federal efforts to standardize them at ₦145 per meter. For example, while Ekiti charges the standardized rate, some states like Ebonyi impose fees up to 69 times higher, deterring investment and stalling infrastructure growth. According to the Global System for Mobile Communications Association (GSMA), aligning RoW fees across Nigeria could reduce the cost of national network rollouts by up to 15%, creating a more enabling environment for internet expansion.
In the states that have implemented RoW fee waivers, a combined fiber network of 10,542.1 km exists, per data from Nigeria’s Ministry of Communications, Innovation, and Digital Economy. These states, with a combined mobile subscription base of over 31 million as of Q1 2024, stand to benefit from enhanced connectivity and economic opportunities as telecom operators ramp up infrastructure investments without the additional burden of RoW fees.
Strategic Significance of Fiber Infrastructure for Connectivity
Nigeria’s shores are equipped with extensive internet capacity, but the lack of fiber infrastructure within the country has prevented widespread distribution. Fiber optic cables, essential for high-speed internet, remain challenging to install due to RoW constraints, making these waivers a crucial step toward bridging Nigeria’s digital divide. According to the Nigerian Communications Commission (NCC), approximately 27 million Nigerians lack telecom access, while 301 local government areas remain without internet service.
The country’s connectivity gap has created significant digital inequality, with more than 120 million Nigerians unable to access mobile internet due to infrastructure and affordability challenges. Recognizing this, NCC Executive Vice Chairman Aminu Maida has been advocating for state-level waivers to create an enabling environment for investments that can foster economic growth and digital inclusion.
Challenges Beyond Right-of-Way Fees: Hidden Levies and Infrastructure Risks
While some states have implemented RoW waivers, telecom operators face alternative charges like developmental levies, ecosystem levies, and state impact fees. This complexity, as described by Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), often results in charges that exceed the original RoW fees, frustrating efforts to streamline costs.
Other factors, including the destruction of fiber lines by road construction projects and vandalism, also impede the sector’s progress. Chidi Ibisi, Executive Director of Broadbased Communications, highlighted these additional costs as significant barriers to Nigeria’s target of deploying 90,000 kilometers of fiber optic cable nationwide.
A Path Forward: Enabling Digital Infrastructure for Economic Growth
Under the leadership of Minister Bosun Tijani, Nigeria’s Ministry of Communications has prioritized fiber broadband expansion as a key pillar of the digital economy. Simplifying RoW processes, cutting approval times, and eliminating hidden fees would enable operators to expand networks more rapidly, ultimately supporting Nigeria’s economic goals.
As more states join in waiving RoW fees, Nigeria is better positioned to accelerate internet access, reduce costs, and unlock the economic benefits of digital connectivity. With state and federal alignment, these efforts may transform Nigeria’s digital landscape, creating a foundation for sustainable digital infrastructure and broad-based economic growth.