Telecom stakeholders express concern for Nigeria’s fibre optic expansion plan
Stakeholders in the telecommunications industry have expressed concerns over the Federal Government’s ambitious plan to deploy 90,000 kilometers of fibre optic cables across Nigeria.
During the Sixth Edition of the Policy Implementation Assisted Forum (PIAFO) in Lagos on Wednesday, the industry experts highlighted the pressing issues of Right of Way (RoW) charges, multiple taxation, and levies, which fall under the jurisdiction of state governments.
Stating that the initiative may face significant obstacles from state governments that could jeopardize its success, they warned that unless these issues are addressed, the project, set to be implemented through a Special Purpose Vehicle (SPV), would likely fail.
Mr. Chidi Ibisi, Executive Director of Broadbased Communications, presented a paper titled “Harmonizing Nigeria’s Fibre Deployment Strategies for Effective Implementation.”
He praised the SPV initiative as a potential solution to Nigeria’s digital infrastructure gap but stressed the need to resolve current challenges.
“The issues of high cost of Right of Way (RoW), destruction of fiber by road construction companies, and vandalism all need to be addressed for this new SPV initiative to be successful,” he said.
Mr. Chidi Ajuzie, Group Chief Operating Officer of WTES Projects Limited, pointed out that informal RoW charges by local hoodlums are a major hurdle for telecom operators.
“In some communities, so-called landowners (omo onile) demand payments from operators laying fibre cables, complicating the process and adding to costs,” he explained.
Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), emphasized that state governments must take ownership for the 90,000-kilometer fibre project to succeed.
He criticized the practice of state governments treating RoW as a source of revenue and imposing various levies, which cumulatively exceed formal RoW charges.
Dr. Ayotunde Coker, CEO of Open Access Data Centre (OADC), advocated for private sector execution of the fibre project, which is expected to receive up to $3 billion in funding from the World Bank.
He argued that the World Bank should engage the private sector to implement the project effectively and ensure that lessons from past failures are learned.
“We need meaningful broadband, superhighway fibres, and a well-distributed backbone to achieve our broadband penetration targets,” he stated.
The convener of PIAFO, Mr. Omobayo Azeez, noted that the forum aimed to foster dialogue among digital economy stakeholders from both the public and private sectors.
The event, themed “Accelerating Our Collective Prosperity through Technical Efficiency,” focused on Nigeria’s renewed strategic agenda for the digital economy, challenging stakeholders to explore new frontiers and enhance technical efficiency.
