The Federal Government’s ambitious plan to install 90,000 kilometers of fiber optic connections across Nigeria through a Special Purpose Vehicle (SPV), has sparked concerns from industry stakeholders. They emphasized the urgent issue of levies, multiple taxes, and Right of Way (RoW) charges, which are within state government control. The stakeholders said unless these problems are resolved, the project may encounter major challenges from state governments that might compromise its success. These critical issues were brought up by industry experts during the Sixth Edition of the Policy Implementation Assisted Forum (PIAFO) in Lagos.
While commending the SPV idea as a viable remedy for Nigeria’s lack of digital infrastructure, Mr. Chidi Ibisi, Executive Director of Broadbased Communications, emphasized the need of addressing present issues. The Group Chief Operating Officer of WTES Projects Limited, Mr. Chidi Ajuzie, noted that one of the biggest challenges facing telecom operators is the informal rates of return levied by local thugs. Chairman of the Association of Licenced Telecommunications Operators of Nigeria (ALTON) Chairman, Engr. Gbenga Adebayo, stressed that state governments must assume responsibility for the 90,000-kilometer fiber project in order for it to be successful.
Boosting Nigeria fiber optic coverage to 125,000 km.
He condemned the state governments act of using RoW as a source of wrath and enacting a number of levies that add up to more than the official RoW charges. CEO of Open Access Data Centre (OADC), Dr. Ayotunde Coker, stated that the Private Sector should be entrusted with executing the project. The goal of the forum, according to its organizer, Mr. Omobayo Azeez, is to promote communication between public and private sector participants in the digital economy. In keeping with Nigeria’s updated strategic vision for the digital economy, the event, with the theme “Accelerating Our Collective Prosperity through Technical Efficiency,” challenged participants to push the boundaries of Innovation and improve technical efficiency.
Initially, Nigeria intends to use this project to increase the capacity of its optical fiber network from 35,000 kilometers to at least 125,000 kilometers in order to guarantee total coverage and provide high-speed internet services to all of its citizens. The installation of an additional 90,000 km of fiber optic cable through this project, would position the country to have the third-longest terrestrial fiber optic backbone in Africa, behind Egypt and South Africa.
World Bank has pledged to fund the initiative up to $3 billion.
Moreover, the project is anticipated to have a major economic impact by lowering Internet Access costs by more than 60 percent, raising internet penetration to over 70 percent, and possibly boosting GDP by $30 billion by 2028. The World Bank has also pledged to fund the initiative up to $3 billion, highlighting the significance of collaboration between the public and private sectors in accomplishing these lofty objectives. With such wide coverage, Nigeria would be able to fully capitalize on the submarine cables that have already landed in the country and boost the cables data capacity to surpass the current 10 percent threshold.
Nigeria’s deployment of fiber optics has advanced, as evidenced by a number of individual projects. In Lagos and other areas, for instance, the 7,000-kilometer fiber optic cable project by MainOne has greatly boosted the penetration of broadband. The partnership between IHS Nigeria and the Nigerian government has also resulted in notable advancements in rural connectivity, providing mobile network services to more than 580 rural villages that were initially underserved. This project is in tandem with the National Broadband Plan, which aims to achieve 70 percent broadband penetration by 2025. These initiatives highlight how effective policy frameworks and strategic alliances may be in changing Nigeria’s digital environment.
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Eight submarine cables, including the 2Africa Cable, Google’s Equiano cable, and the Nigeria Cameroon Submarine Cable System (NCSCS), have currently landed in Nigeria, greatly enhancing the nation’s Digital Infrastructure and internet capabilities. Firms such as Phase3 Telecom have been active in the installation of fibre optic cables alongside important thoroughfares and the extension of the system to underserved areas. In addition, MTN Nigeria has installed thousands of kilometres of fibre across the nation, linking rural and urban locations. The accomplishment of fiber optic projects in Nigeria is contingent upon the ability to surmount administrative and logistical obstacles through efficient cooperation between public, corporate, and community organizations.