Ogun State ranks fourth in Nigeria for fibre infrastructure funding, with 4,189.18 kilometres of cable laid. But, it expenses the very best right-of-way charges—levied by state governments for laying fibre optic cables—within the nation: ₦9,477 per linear metre, in keeping with a listing obtained completely by TechCabal from telecom business operators. 

Osun State, which has one of many lowest ranges of fibre deployment at simply 64 kilometres, is second on the listing, charging a right-of-way charge of ₦6,850 per linear metre.

Compiled by telecom business operators in March 2024, the listing is the primary complete snapshot of right-of-way expenses throughout Nigerian states. It highlights the fragmented and infrequently burdensome nature of right-of-way governance. It reveals how a number of states have leveraged it primarily for income era moderately than as a device to advertise digital infrastructure growth.

Lagos, which leads Nigeria in fibre protection with 7,864.6km, expenses ₦6,264 per metre, making it the third costliest state for right-of-way. Different high-fee states embrace Oyo (₦5,303), Cross River (₦4,737), Rivers (₦4,047), Edo (₦3,491), and Ondo (₦3,075).

Some states have extra reasonably priced charges: Sokoto and Jigawa cost ₦3,000; Benue and Bayelsa ₦2,500; Kano ₦2,258; and Abia, Taraba, and Akwa Ibom ₦2,000. On the decrease finish, Borno and Yobe every cost ₦1,000, whereas Gombe presents the bottom charge at ₦500 per metre. 

In 2013, the Nationwide Financial Council (NEC)—together with the Vice President, state governors, and different senior officers—really useful a charge of ₦145 per metre to streamline prices and promote nationwide fibre deployment. However with no laws behind it, many states merely ignored the directive and imposed arbitrary charges.

Some progress was made after a January 2020 assembly between the then Minister of Communications and Digital Economic system, Isa Ali Pantami, and the Nigerian Governors’ Discussion board. Since then, 16 states have revised their charges. Twelve states—Niger, Zamfara, Katsina, Anambra, Kebbi, Nasarawa, Bauchi, Adamawa, Kaduna, Ekiti, Imo, and Plateau—have eradicated the charges. Delta, Enugu, Ebonyi, and the Federal Capital Territory (FCT) now cost the NEC-recommended ₦145.

For some states, waiving right-of-way charges is a deliberate technique to draw telecom investments past simply city centres. In Anambra, the place over 1,000km of fibre has already been deployed, a lot of the funding is concentrated in industrial hubs like Onitsha and Nnewi. The purpose, nonetheless, is to increase protection statewide.

“If telcos judged each funding strictly by revenue, solely industrial zones would get infrastructure,” stated Chukwuemeka Fred Akpata, Managing Director of the Anambra State ICT Company. “By waiving right-of-way, we’re encouraging deployment in underserved areas.”

Equally, Niger State handed a legislation adopting the ₦145 commonplace charge earlier than issuing an government order in September 2024 to waive the charge altogether.

“The ₦0 right-of-way charge relies on government order, however the ₦145 is legislation,” stated Suleiman Isah, Commissioner for Communications and Digital Economic system, Niger State. “If the funding we appeal to within the subsequent 12 months or two outweighs what we constructed from charges, we’ll amend the legislation completely.”

Telecom operators have typically negotiated these charges and obtained diminished charges in a couple of states. In 2021, the Affiliation for Licenced Telecommunication Operators of Nigeria (ALTON), whose members embrace the most important telecom operators similar to MTN Nigeria, Airtel, Globacom, and 9mobile, negotiated a diminished Proper of Approach charge with the Lagos State Authorities. 

Below Governor Godwin Obaseki’s administration, Edo State eradicated Proper-of-Approach charges for a couple of telecom operators similar to MTN Nigeria and Airtel Nigeria. This coverage enabled these firms to increase web connectivity to quite a few authorities workplaces and public establishments.

Gbenga Adebayo, President of the Affiliation of Licensed Telecommunications Operators of Nigeria (ALTON), has noticed these developments carefully. He argues that whereas eradicating right-of-way charges is a step ahead, it isn’t a sustainable answer by itself.

“The period of state governments charging Proper-of-Approach charges needs to be over,” Adebayo advised TechCabal. “When states impose these charges, they lose out on the broader advantages of digital infrastructure. As a substitute of charging right-of-way charges, states ought to require telecom operators to ship social impression tasks.”

Adebayo added that some states, regardless of formally waiving right-of-way charges, impose hidden prices similar to schooling taxes and freeway levies, which discourage funding. In distinction, states like Kwara have efficiently attracted impactful tasks, together with a multi-million greenback ICT hub, the Ilorin Innovation Hub.

These inconsistencies in right-of-way insurance policies proceed to affect the place fibre infrastructure is deployed, deepening regional disparities in digital entry. Whereas some states leverage charge waivers to attract long-term funding, others threat lacking out by imposing excessive entry prices. With out a unified and enforceable nationwide right-of-way framework, Nigeria’s ambition for common broadband protection will stay uneven and fragmented.