Twelve States Waive Fees to Strengthen Broadband Investment in Rural Areas

Bitcoins

bitcoins Global Internet Index
Global Internet Index



About a dozen Nigerian states have waived Right of Way (RoW) fees to attract broadband investments and expand internet access, particularly in rural and underserved areas.

These states, including Zamfara, Katsina, Anambra, Kebbi, Nasa,rawa, Bauchi, and Adamawa, have over 31.17 million mobile subscriptions. Their goal is to improve digital connectivity by easing infrastructure deployment for telecom operators.

RoW is a fee that telecom companies pay state governments for permission to dig roads and install infrastructure like fibre optic cables, which carry internet traffic. This fee is one of the major hurdles in building broadband networks across the country.

Fibre optic cables are essential to modern communication, providing high-capacity links that connect mobile network sites and carry data traffic. Building these cables is essential in a country where broadband penetration stood at 45.61 percent in January 2025. This is despite surging internet usage in the country, which rose to over 1 million terabytes in January, underscoring increased consumption of digital services.

“Nigeria has fast internet capacity on its shores, but this capacity cannot reach people without fibre. RoW challenges have gotten in the way of this over the years,” an industry insider said.

According to the Ministry of Communications, Innovation and Digital Economy, only 39 percent of Nigerians live within five km of fibre networks. High RoW charges have discouraged investments in expanding Nigeria’s fibre backbone, which stands at around 35,000km. To address this problem, the state governors agreed to reduce RoW rates to N145 per metre.

“However, only a limited number of states have implemented this agreement, with many states increasing RoW rates instead,” according to GSMA, the global body for telcos.

Read Also:

Ebonyi has the highest RoW charges, up to 69 times more than others, like Ekiti, which has the lowest.

However, advocacy by the Nigerian Communications Commission (NCC) is beginning to yield results. So far 12 states have waived this fee, with Niger State becoming the latest addition to this group of states. Rather than collecting RoW fees, telecom operators will now pay a one-time, non-refundable application fee of N500,000.

These states aim to expand their at least 14,223.76km of fibre network to improve access for their citizens. “Eliminating right of way (RoW) fees for telecommunication infrastructure can significantly lower the cost of network deployment, thereby accelerating digital inclusion and providing residents with better access to educational resources, healthcare services, and economic opportunities,” Niger State said.

GSMA estimates that harmonising RoW rates to N145 per metre across all states could reduce the total cost of national broadband rollout by roughly 15 percent. With more states waiving the fees, operators are likely to increase their investments.

Despite rising demand, limited connectivity has led to usage gaps, with more than 120 million Nigerians not using mobile internet due to infrastructure and affordability issues, according to GSMA. The NCC estimates that 23 million Nigerians still lack telecom access, while 301 local government areas have no internet service. Without resolving the RoW challenge, operators cannot deploy the fibre needed to bridge this gap.

Aminu Maida, the executive vice chairman of the NCC, emphasised that waiving RoW fees creates an enabling environment for telecom investment, increases connectivity, drives economic growth, and enhances access to digital services.

According to the GSMA, streamlining RoW processes will accelerate nationwide connectivity.

Source: Businessday

Economic Confidential Read More

Latest

Tencent Music Posts 7.3% Q1 2026 Revenue Jump, Points to Triple-Digit Live Growth and Continued Superfan Expansion

A live performance from Jay Chou, whose Children of the Sun is said to have generated about $14.7 million on Tencent Music during Q1 2026. Photo Credit: GEM_Ady Amid a continued SVIP expansion and a triple-digit revenue boost on the concerts side, Tencent Music Entertainment (TME) has reported nearly $1.2 billion in Q1 2026 revenue.

Newsletter

Don't miss

Tencent Music Posts 7.3% Q1 2026 Revenue Jump, Points to Triple-Digit Live Growth and Continued Superfan Expansion

A live performance from Jay Chou, whose Children of the Sun is said to have generated about $14.7 million on Tencent Music during Q1 2026. Photo Credit: GEM_Ady Amid a continued SVIP expansion and a triple-digit revenue boost on the concerts side, Tencent Music Entertainment (TME) has reported nearly $1.2 billion in Q1 2026 revenue.

BLXCKIE Previews New Song “Uphi Usomnyama”

MusicBLXCKIE Previews New Song “Uphi Usomnyama.” The SA...

WD sees sustainability as key business driver in an ‘AI economy’

Hard drive company WD promoted long-term operations and sustainability executive Jackie Jung to become its first chief sustainability officer in February, as it steps up sales to companies building AI data centers. Her vision: Turn sustainability into a “brand” for WD, a strategy that reduces risk for the $6 billion company (formerly known as Western

5 Business Ideas Worth Starting in 2026

If there is one thing Nigerians understand well, it is how to spot opportunity inside hardship. In 2026, that mindset will matter more than ever. The economy is tough, competition is rising, and many people are looking for smarter ways to earn, build, and survive. But even in a difficult environment, some businesses still stand

Getting a business loan now comes with a frequent flyer upside

Australian fintech Prospa has partnered with Qantas Business Rewards, letting eligible SMEs earn up to 500,000 points per loan. What’s happening: Australian fintech lender Prospa has partnered with Qantas Business Rewards to allow eligible small and medium business owners to earn up to 500,000 Qantas Points per loan when taking out a Prospa Small Business