Nigeria’s ambition to emerge as a prominent digital economy is increasingly hampered by unresolved Right of Way (RoW) issues, which significantly slow down the deployment of essential telecommunications infrastructure. Telecommunications companies are critical for establishing a robust fibre optic network that provides high-speed internet and seamless connectivity across the nation. However, excessive RoW fees, often imposed by state governments, impede the expansion efforts necessary for a flourishing digital landscape. The concept of RoW encompasses permissions that allow telecom companies to install, maintain, and upgrade necessary infrastructure—like fibre optic cables and cell towers—on both public and private properties. As the digital economy is built upon quality infrastructure, including online education and e-commerce, an environment conducive to its growth should be fostered, rather than creating roadblocks that stifle its development.
Despite initial attempts at facilitating infrastructure growth, several states have disregarded the 2013 agreement by the National Economic Council, which capped RoW charges at N145 per linear meter. This violation by state governments complicates the financial landscape for telecom operators and hinders broadband deployment, a crucial element for enhancing digital services in Nigeria. As voiced by Gbenga Adebayor, Chairman of the Association of Licensed Telecommunications Operators, some states not only charge beyond the agreed amount but also adopt alternative strategies to inflate costs under the guise of providing free RoW. Consequently, stakeholders are urgently calling for interventions to address these challenges, as the current fiscal landscape places an undue burden on telecom operators, preventing them from realizing the potential of Nigeria’s digital economy.
In June 2024, the Nigerian Communications Commission (NCC) reported successful negotiations resulting in only six states waiving RoW fees, underlining the limited progress made in harmonizing associated costs nationwide. The disparity in RoW charges across the country remains a barrier, particularly affecting rural areas where broadband penetration is still critically lacking. Optimistic strides have been made, such as discussions that led to a proposed Memorandum of Understanding between telecom operators and state governments during a strategic meeting. However, the ongoing reality for many underserved areas remains bleak, exacerbating the digital divide. With the Federal Government setting an ambitious goal of 70 percent broadband penetration by 2025, urgent action is required to minimize the number of unconnected Nigerians residing in rural locales.
A vibrant youth demographic in Nigeria can drive the country’s digital economy, yet the infrastructural deficits pose a formidable barrier to achieving this potential. The younger generation’s eagerness for technology adoption creates a promising opportunity; however, without equitable broadband access across urban and rural divides, the full potential of this tech-savvy cohort may remain untapped. Experts caution that failure to address current infrastructure impediments could lead Nigeria to lag in the global digital race, missing out on innovation and economic growth opportunities. This concern accentuates the argument that bolstering broadband infrastructure is not simply the responsibility of telecom operators but a critical socio-economic issue that significantly influences jobs and livelihoods.
In this context, labor unions and civil society organizations are increasingly being called upon to hold non-compliant state governments accountable regarding RoW fees. Deolu Ogunbanjo, National President of the National Association of Telecommunications Subscribers, has urged such groups to engage in advocacy efforts aimed at promoting compliance with established RoW policies. The emphasis is on the economic implications of expanding fibre optic networks, which fuel job creation and broader economic activity in communities. By prioritizing this issue, stakeholders can gather momentum for infrastructure development, emphasizing the societal benefits that come with better connectivity, ultimately improving the way of life for many citizens.
While state governments play a critical role in the ongoing challenges, industry insiders point to federal inaction as a compounding factor. Current Minister of Communications, Dr. Bosun Tijani, is criticized for focusing on internal matters within the ministry instead of tackling pressing infrastructure issues like RoW fees. Compared to previous ministers who actively engaged with state governors to resolve these disputes, many feel that Tijani’s administration lacks urgency in addressing critical barriers for telecom operators. This is exacerbated by the perception that state officials often use RoW regulations as a financial gain opportunity rather than supporting the digital infrastructure needed nationwide.
Despite these considerable obstacles, there remains a light of hope for progress among many industry leaders who call for collaboration between federal and state governments to prioritize telecommunications infrastructure. Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria, emphasized the necessity of simplifying regulatory processes, making the business landscape more predictable and cost-effective. As the landscape currently stands, state governments must prioritize a long-term vision for digital growth, moving beyond the allure of immediate revenue gains to cultivate an environment conducive for widespread digital access. The federal government must also take a proactive stance in unifying RoW policy and supporting telecommunications expansion across the nation. Without timely intervention and cooperation, Nigeria risks falling behind in a digitized world, jeopardizing the digital economy’s potential for national development.
