By TOSI ORE

Nigeria’s Digital Highway Blocked by RoW Charges as Telcos Warn of Investment Slowdown

The Infrastructure Bottleneck Behind Nigeria’s Digital Ambitions

NIGERIA’S telecommunications industry is facing a persistent infrastructure challenge that operators say is limiting investment and slowing the expansion of reliable broadband services.

At the centre of the dispute is Right of Way, or RoW, the permission required by telecommunications companies to deploy and maintain fibre-optic cables, towers, antennas and other network infrastructure across public and private land.

Telecom operators argue that inconsistent charges imposed by states and local governments have made infrastructure deployment unnecessarily expensive.

The problem is significant because Nigeria’s digital economy increasingly depends on widespread and reliable connectivity.

Mobile banking, online education, digital healthcare, electronic commerce and other technology-driven services all depend on telecommunications infrastructure reaching communities beyond major commercial centres.

Operators Challenge the Cost of Doing Business

Gbenga Adebayo, Chairman of the Association of Licensed Telecoms Operators of Nigeria, said the cost of moving connectivity across some parts of Nigeria can be disproportionately high.

He argued that operators sometimes face a situation in which carrying bandwidth internationally can cost less than extending connectivity to certain parts of the country.

Adebayo attributed part of the problem to what operators describe as hidden charges imposed after states announce supposedly free or reduced RoW policies.

According to him, some states that advertise zero-RoW regimes subsequently impose development charges, education levies and infrastructure-related fees.

Such charges, he argued, undermine the purpose of the zero-RoW policy and increase the cost of deploying broadband infrastructure.

The operators are consequently calling for greater harmonisation between federal and state telecommunications policies.

The N145 Question

The dispute is not new.

In 2020, the Nigerian Governors’ Forum agreed to a uniform RoW charge of N145 per linear metre as part of efforts to reduce the cost of broadband deployment.

The intended objective was straightforward.

A uniform charge would provide operators with greater certainty when planning infrastructure projects and reduce the regulatory differences encountered from one state to another.

But the implementation has remained uneven.

The Nigerian Communications Commission has indicated that only some states have completely waived RoW fees, while others have adopted the N145 benchmark.

Between 2023 and 2025, Adamawa, Bauchi, Enugu, Benue and Zamfara joined the states that eliminated RoW charges.

These states have consequently emerged as examples of how cooperation between government and the telecom industry can reduce one of the barriers to infrastructure deployment.

Yet the wider national picture remains fragmented.

Why State-Level Policies Matter

For telecommunications operators, infrastructure investment requires long-term planning.

A fibre network can cross several local government areas and state boundaries.

When each jurisdiction applies different charges, approval processes and requirements, the cost and uncertainty of a project increase.

The problem becomes more serious when operators must deal with multiple agencies for what is essentially the same infrastructure deployment.

The consequences extend beyond telecom companies.

When fibre deployment slows, communities may wait longer for faster internet services.

Businesses may face weaker connectivity.

Schools may struggle to expand digital learning.

Healthcare providers may encounter limitations in telemedicine and digital record systems.

Financial institutions and technology companies may also face higher costs when expanding digital services into underserved areas.

Investment Under Pressure

RoW charges are not the only problem confronting operators.

The industry also faces high operating costs, foreign-exchange volatility, unreliable electricity supply and expensive diesel for base stations.

Fibre cuts caused by road construction and other infrastructure projects add another layer of disruption.

Vandalism and insecurity further threaten network infrastructure.

Operators therefore face a difficult investment environment in which the cost of building and maintaining networks continues to rise while returns can remain uncertain.

The slower uptake of expensive 5G-compatible devices and weaker foreign capital inflows add to the pressure.

The result is a complicated investment equation.

Telecom companies are expected to expand coverage and improve quality, but the operating environment can make additional investment increasingly expensive.

The Tariff Debate

Against this backdrop, the industry has also sought to clarify concerns about telecommunications tariffs.

Adebayo dismissed suggestions that the NCC’s ongoing Mobile Termination Rate cost study automatically means another increase in retail telecom prices.

The exercise, he explained, concerns wholesale interconnection charges between operators.

These are the charges associated with completing calls across different networks.

He said the review is intended to reflect current market conditions and is based on evidence and cost analysis.

According to ALTON, no industry proposal has been submitted to the NCC seeking a retail tariff increase as a direct consequence of the exercise.

The distinction is important because wholesale interconnection pricing and retail prices paid by consumers are not the same regulatory issue.

Quality of Service Beyond Penalties

The industry’s position also highlights a continuing disagreement over network quality.

Subscribers understandably expect reliable services.

However, Adebayo argued that imposing fines on operators cannot by itself solve disruptions caused by damaged fibre, electricity shortages, insecurity, vandalism or delays in infrastructure deployment.

The argument places responsibility on a broader ecosystem.

Network operators control some elements of service delivery.

Governments, construction companies, security agencies, electricity providers and regulators influence others.

Improving telecommunications quality therefore requires coordination across these areas.

A Test for Nigeria’s Digital Economy

The RoW dispute ultimately goes beyond telecom companies.

It raises a broader question about how Nigeria intends to build its digital economy.

A country cannot achieve widespread digital inclusion if the infrastructure required to provide connectivity remains expensive and difficult to deploy.

The states that have waived or capped RoW charges demonstrate that policy decisions can influence investment conditions.

But isolated reforms may not be enough.

Nigeria needs greater consistency between federal policy and state implementation if broadband infrastructure is to expand at the pace required by its growing digital economy.

The debate also exposes a central policy tension.

Governments seek revenue from fees and charges, while telecom operators need predictable costs to justify infrastructure investment.

Finding the right balance will determine whether Nigeria’s digital transformation reaches only commercially attractive urban markets or extends to underserved communities across the country.

The Road Ahead

Recent cooperation among the NCC, the Federal Competition and Consumer Protection Commission and other institutions suggests that regulators recognise the need for greater coordination.

Security agencies have also intensified efforts to protect critical telecommunications infrastructure.

But the larger challenge remains institutional.

Nigeria needs a regulatory environment in which operators can calculate infrastructure costs with reasonable certainty and governments can protect the public interest without creating unnecessary barriers to investment.

Until that balance is achieved, the country’s digital ambitions will continue to encounter a very physical obstacle: the difficulty and cost of building the infrastructure that carries the digital economy.