Nigeria: Katsina State removes right of way fees for telecom operators
December 14th 2023
The right of way refers to the fees levied by the government on telecoms companies so that they can use land reserved for roads for the installation of optical fiber. In Nigeria, this fee is N145 per meter nationwide.
The government of Katsina State, in northern Nigeria, decided last week to waive right of way fees for telecommunications operators. The initiative aims to accelerate the deployment of high-speed telecoms infrastructure.
« I have no doubt that this measure will soon attract investments in Katsina State, particularly in the areas of information and communication technology (ICT). ) and Internet development,” said Ibrahim Kaula, spokesperson for the governor of Katsina.
The current right of way fee in Nigeria is 145 naira ($0.18) per linear meter. This tariff is the result of the harmonization process initiated in 2017 by the federal government in collaboration with the governments of the 36 states of Nigeria. Prior to this, these fees were set by states and ranged between N4,000 and N8,000 per meter.
More and more Nigerian states are taking initiatives to reduce toll fees. Last August, Anambra State decided to remove right of way fees to accelerate the deployment of broadband. In November 2022, Nigeria reduced rights of way fees for telecom infrastructure in its Federal Capital Territory by 90%. Ekiti State also made a similar decision in 2020.
These various initiatives aim to facilitate the deployment of optical fiber in a context of digital transformation marked by a growing demand for high-speed connectivity. According to Bosun Tijani, Minister of Communications, Innovation and Digital Economy, Nigeria still needs about 60,000 km of optical fiber to ensure full coverage. To achieve this, the country will have to invest between 1.5 and 2 billion US dollars.
Source: Agence Ecofin Back