Nigerian Telecom Operators Seek Removal of Right-of-Way Charges to Accelerate Broadband Expansion

Telecommunications operators in Nigeria have called for legislation to eliminate right-of-way charges on fibre-optic infrastructure, arguing that the fees are increasing network deployment costs and discouraging investment in broadband connectivity.

The proposal could have significant implications for Nigeria’s digital economy, particularly as businesses become increasingly dependent on reliable internet services, digital payments and technology-driven operations.

Addressing High Infrastructure Deployment Costs

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has identified right-of-way charges as a major barrier to the expansion of telecommunications infrastructure.

Speaking during the Nigerian Economic Summit in Abuja, ALTON Chairman Gbenga Adebayo explained that the charges can account for approximately 50% to 60% of fibre-optic deployment costs in some states.

These expenses increase the financial burden on operators seeking to expand networks and improve service coverage.

Industry stakeholders are therefore advocating legislation that would eliminate the charges and encourage greater investment in communications infrastructure.

Expanding Broadband Access Across Nigeria

Improving internet connectivity remains essential to Nigeria’s digital transformation.

Although the country has a large telecommunications subscriber base, significant connectivity gaps persist, particularly in rural and underserved communities.

High infrastructure costs, ageing telecommunications facilities, inadequate fibre networks and recurring cable damage continue to affect network expansion.

Operators believe that reducing deployment expenses could encourage investment in areas where the commercial returns are currently limited.

The industry has also proposed additional incentives and government support mechanisms to make network expansion into underserved locations more economically viable.

Implications for Businesses and Digital Services

Reliable broadband connectivity has become an important requirement for modern business operations.

Enterprises increasingly depend on internet infrastructure for digital payments, online marketing, e-commerce, customer communications and cloud-based services.

Improved network quality could enhance business productivity, support remote operations and encourage entrepreneurship.

For technology startups and financial technology companies, stronger telecommunications infrastructure could also help expand access to digital services.

The development of artificial intelligence applications, digital banking and other emerging technologies will similarly depend on reliable, high-capacity networks.

Encouraging Investment in Digital Infrastructure

The call for regulatory reforms highlights the broader importance of a predictable investment environment.

Telecommunications companies require substantial capital to build and maintain networks, making infrastructure costs and regulatory consistency important investment considerations.

Reducing unnecessary financial barriers could make Nigeria more attractive for long-term infrastructure investment.

However, effective reforms would also need to address infrastructure protection, permitting procedures and coordination between telecommunications operators and public authorities.

The Bigger Picture

Nigeria’s digital economy depends on affordable, accessible and reliable telecommunications infrastructure.

Removing or reducing right-of-way charges could help accelerate broadband expansion, particularly in underserved communities.

If supported by consistent policies, infrastructure protection and continued private investment, such reforms could strengthen digital inclusion, improve business competitiveness and create new opportunities across Nigeria’s technology ecosystem.