Ogun State, known for its significant investment in fibre infrastructure, has raised eyebrows by charging the highest right-of-way fees in Nigeria. According to a list obtained from industry operators, Ogun demands ₦9,477 per linear metre for laying fiber optic cables—an amount that surpasses all other states in the country.
On the other hand, Osun State takes the second spot despite having minimal fiber deployment compared to its counterparts. With only 64 kilometers of fiber laid down, Osun charges ₦6,850 per linear meter for right-of-way access.
The compiled data from March 2024 offers a comprehensive overview of right-of-way charges across Nigerian states—a pivotal moment shedding light on the disparities and complexities within digital infrastructure governance nationwide.
### A Closer Look at State Charges
While Lagos boasts extensive fiber coverage spanning 7,864.6km, it maintains a fee of ₦6,264 per meter—placing it among the top three most expensive states for right-of-way access. Other notable high-fee locations include Oyo (₦5,303), Cross River (₦4,737), Rivers (₦4,047), Edo (₦3,491), and Ondo (₦3,075).
Conversely, some states present more pocket-friendly rates such as Sokoto and Jigawa at ₦3,000; Benue and Bayelsa at ₦2.500; Kano at ₦2.258; and Abia,Taraba,and Akwa Ibom at ₦2.000 per meter. At the lower end of the spectrum are Borno and Yobe charging ₦1.000 each; while Gombe stands out with the lowest rate set at ₦500 per meter.
### The National Economic Council’s Recommendation
Back in 2013,the National Economic Council proposed a standard fee of ₦145 per meter to streamline costs and foster widespread fiber deployment across Nigeria.However,this recommendation lacked legislative backing,resulting in several states disregarding it to impose arbitrary fees based on their discretion.
A significant turning point occurred post a crucial meeting in January 2020 between then Minister of Communications and Digital Economy Isa Ali Pantami and representatives from the Nigerian Governors’ Forum.As a result,sixteen states amended their fees following this encounter—with twelve states completely abolishing them altogether.
### Insider Perspectives and Strategic Moves
Chukwuemeka Fred Akpata,the Managing Director of Anambra State ICT Agency,argues that waiving right-of-way fees serves as an intentional strategy to attract telecom investments beyond major urban centers.His insights shed light on how incentivizing expansions into underserved regions can spur overall growth within the sector.
Similarly,Niger State adopted a forward-thinking approach by passing legislation adoptingthe recommended standard fee before eventually waiving it entirely through an executive order issued in September 2024.This proactive measure aims to stimulate increased investments which,in turn,could outweigh revenue generated from imposing fees.
Gbenga Adebayo,the President of ALTON,stresses that while eliminating these fees is undoubtedly positive,it should be seen as just one step towards ensuring sustainable development within Nigeria’s digital landscape.He advocates for state governments to pivot towards compelling telecom operators to embark on impactful community projects instead of focusing solely on financial gains through levies like right-of-way fees.
### Shaping Future Landscapes through Policy Changes
Inconsistencies among state policies regarding right-of-way access not only influence where fiber infrastructure is expanded but also deepen discrepancies in digital connectivity regionally.While certain regions leverage fee waivers as catalysts for long-term investments,others potentially hinder progress by enforcing exorbitant entry costs without a standardized,nationwide framework guiding these decisions.
Ultimately,a unified approach underpinned by enforceable regulations could pave the way towards realizing Nigeria’s vision of universal broadband coverage characterized by equitable distribution across all corners of the nation.
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