The federal government is aiming for 70% broadband penetration in Nigeria by 2025. To this end, Abuja is stepping up actions to encourage more investment in the sector.
Telecom operators will now pay N14.50 (USD 0.033) per meter as a right of way fee to deploy broadband infrastructure in the Federal Capital Territory of Nigeria. The new tariff which will come into effect from Thursday, December 1 represents a reduction of 90% compared to the 145 naira (0.33 USD) paid until then. It will be valid for the next two years.
In 2017, the federal government entered into an agreement with all the governors of Nigeria’s 36 states to harmonize right of way fees for telecom companies in the country. Until then, these fees were set by the states and varied between 4,000 Naira and 8,000 Naira per meter. It was after the harmonization that the tariff increased to 145 naira.
The new revision of the right of way tariff is part of the actions undertaken by the Nigerian government to accelerate the penetration of broadband in the country, in a context marked by the acceleration of digital transformation. Abuja has set a target of connecting 70% of the population to broadband by 2025. However, the latest statistics from the Nigerian Communications Commission (NCC) show only 45% broadband penetration.
The reduction in right of way charges is expected to accelerate investments in broadband telecommunications infrastructure in Nigeria. This should not only improve the availability and quality of telecom services, but also reduce their costs.