In a significant step toward strengthening Nigeria’s digital infrastructure, 11 states have waived Right of Way (RoW) charges for telecom operators. This move aligns with the Federal Government’s commitment to accelerating broadband expansion and reducing financial barriers hindering telecom investments.
Minister of Communications and Digital Economy, Bosun Tijani, confirmed that these states responded to the Federal Government’s appeal to remove RoW fees. This development follows President Bola Tinubu’s receipt of the Digital Economy Report from participants of the Senior Executive Course 46 at the National Institute for Policy and Strategic Studies (NIPSS). One of the report’s key recommendations was to encourage states to waive RoW fees to enhance broadband accessibility.
Impact on Broadband Rollout and Affordability
The elimination of RoW fees is expected to cut national network rollout costs by approximately 15%, making broadband services more affordable and accessible across the country. Among the states implementing the waiver are:
Zamfara
Katsina
Anambra
Kebbi
Nasarawa
Bauchi
Adamawa
These states collectively represent over 31 million mobile subscribers as of Q1 2024, underscoring the significant impact of the waiver on telecom penetration.
Emerging Challenges: Alternative Levies
Despite the waiver, some states have introduced alternative levies, such as developmental or ecosystem fees, which could counteract the benefits of RoW charge elimination. This raises concerns about whether the financial relief for telecom operators will translate fully into lower broadband costs for consumers.
The Federal Government aims for full nationwide adoption of the RoW fee waiver initiative before the end of its second year in office. This ambition highlights the administration’s dedication to creating a more investment-friendly digital ecosystem and ensuring that broadband services reach underserved communities.
Conclusion
By waiving RoW fees, these 11 states are paving the way for enhanced digital connectivity and economic growth. However, addressing emerging levies and ensuring that cost reductions benefit end-users will be crucial for the success of Nigeria’s broadband expansion strategy.