Nigeria’s National Broadband Plan (2020-2025) aims to achieve 90% broadband penetration by 2025, a goal that many consider ambitious, as the penetration rate has hovered around 30% for years. However, there has been some progress.
In 2020, broadband penetration reportedly climbed to 43.3%, according to a tweet by Dr. Isa Pantami, Nigeria’s Minister of Communication and Digital Economy. However, some experts, such as Gbenga Sesan, have disputed these numbers, suggesting the true figure is under 10%. Regardless of the exact rate, Nigeria faces significant hurdles, including infrastructure deficits and inconsistencies in regulatory fees.
A major obstacle is the Right of Way (RoW) fee, which network providers must pay to state governments to dig roads and install fiber optic cables. These fees are often steep, making it costly to expand broadband infrastructure, and this stifles connectivity.
The Need for Standardized Fees
While RoW fees generate revenue for states, reducing them could attract telecom companies to invest more in broadband infrastructure. For instance, after Ekiti State lowered its RoW charges, MTN sought approval to lay 160 kilometers of fiber optic cables within the state in 2020.
Recognizing the need for reform, Nigeria’s 36 state governors agreed in 2020 to standardize RoW fees at ₦145 per meter. However, a year later, only seven states—Kaduna, Ekiti, Katsina, Plateau, Kwara, Anambra, and Imo—have implemented the reduced fees. Other states continue to charge exorbitant rates, such as Benue (₦2,500/m), Ogun (₦4,000/m), and Lagos (₦750/m).
Barriers to Implementation
The reasons behind the slow adoption of standardized RoW fees remain unclear. Despite this, industry stakeholders, including the Association of Licensed Telecoms Operators of Nigeria (ALTON), are advocating for change, with reports suggesting that a Memorandum of Understanding may be in the works to lower these charges. Discussions have also occurred at the National Assembly, but governors retain the authority to set the fees, making federal intervention challenging.
For Nigeria to achieve its broadband goals, the remaining 29 states must prioritize the broader benefits of affordable broadband access. Lowering RoW fees is a strategic move that could unlock significant socio-economic benefits for the entire country.
