The Bottleneck of High Right-of-Way Fees
As Nigeria aggressively positions itself as Africa’s leading digital powerhouse, critical infrastructural roadblocks continue to threaten the expansion of robust broadband networks. Stakeholders within the telecommunications sector, led by the Association of Licensed Telecoms Operators of Nigeria (ALTON), have renewed urgent calls for state governments to slash exorbitant telecom right-of-way charges. Industry leaders argue that high state levies stifle capital expenditure, delay rural connectivity, and ultimately impede the nation’s broader macroeconomic objectives.
Economic Implications for Broadband Penetration
Despite previous federal directives and agreements aimed at capping right-of-way fees at N145 per linear meter, several subnational authorities continue to impose arbitrary and prohibitive tariffs on fiber-optic deployment. Economists and sector analysts emphasize that these high costs act as a severe disincentive to infrastructure investment. In an era where digital literacy, fintech integration, and remote commerce drive the modern Nigerian economy, failing to expand high-speed internet infrastructure into unserved and underserved areas directly counters the federal government’s push for a trillion-dollar economy.
Path Forward: Harmonization and Subnational Collaboration
Addressing this recurring challenge requires a synchronized policy framework between federal regulatory bodies, such as the Nigerian Communications Commission (NCC), and state executives. Industry advocates maintain that viewing fiber infrastructure not as an immediate internal revenue generation tool, but as a long-term economic catalyst, will yield exponential dividends. By lowering the cost of deploying telecom right-of-way assets, Nigeria can unlock billions of naira in fresh private sector investments, drastically reduce data costs for end-users, and secure a resilient digital future for millions of citizens.