The Nigerian Government’s plan to deploy 90,000 kilometers of fiber optic cables across the country faces significant obstacles, according to telecommunications industry stakeholders. They warn that state governments could hinder the project unless current issues like Right of Way (RoW) charges, multiple taxation, and levies, which are controlled by the states, are addressed.
During the Sixth Edition of the Policy Implementation Assisted Forum (PIAFO) in Lagos, stakeholders emphasized the need for effective implementation of the project, recently announced by the Federal Government, to enhance connectivity and support Nigeria’s digital economy.
Chidi Ibisi, Executive Director of Broadbased Communications, in his presentation titled ‘Harmonizing Nigeria’s Fibre Deployment Strategies for Effective Implementation,’ stated that while the Special Purpose Vehicle (SPV) initiative could bridge the digital infrastructure gap, existing challenges must be tackled. He highlighted issues such as high RoW costs and damage to fiber cables by construction companies and vandals.
Chidi Ajuzie, Group Chief Operating Officer of WTES Projects Limited, identified informal RoW demands by hoodlums in various states as a major challenge to fiber cable laying. He explained that local landowners and different groups often impose unauthorized charges.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), argued that for the project to be successful, state governments need to take ownership and move away from viewing RoW as a revenue source. He criticized the discrepancy between federal and state policies, where states may promise free RoW but impose various other levies.
Dr. Ayotunde Coker, CEO of Open Access Data Centre (OADC), emphasized that the fiber project should be executed by the private sector, even though the World Bank is expected to fund it with up to $3 billion. He suggested that the World Bank should engage private sector partnerships for effective execution and learn from past mistakes to meet new broadband penetration targets.
Coker also highlighted the importance of meaningful broadband with high-capacity fibers and a robust backbone distribution network. He urged state governors to participate in the project to ensure their states’ growth.
Omobayo Azeez, the convener of PIAFo, explained that the conference aimed to create a dialogue platform for digital economy stakeholders to exchange ideas and work collectively towards accelerating prosperity through technical efficiency. He noted that the federal government’s new digital economy blueprint not only maintains existing policy directions but also challenges stakeholders to explore new possibilities.