
Why Free Right of Way Isn’t Enough for Telecom Growth in Nigeria
As of April 2025, twelve Nigerian states, including Zamfara, Katsina, and Anambra, have officially waived Right of Way (RoW) fees in a bid to attract telecom infrastructure investments. Despite this bold move, these states find themselves lacking critical telecom infrastructure, highlighting that eliminating fees is just a small part of a much larger issue.
The Laid-back Leaders: Lagos vs. Fee-Waiver States
Nigeria's telecom landscape is dominated by Lagos, boasting a staggering 7,864.60 kilometers of laid fiber as of 2023, despite charging RoW fees between ₦850 ($0.53) and ₦1,500 ($0.93) per meter. In stark contrast, states like Niger and Kaduna, which have waived RoW fees, have only managed 3,681.66km and 3,028.88km of fiber respectively.
Understanding the Factors that Influence Investment
This disparity points to a broader truth: fee waivers alone do not guarantee investment. States fostering robust infrastructure, favorable investor policies, and adequate urban populations attract telecom operators, even with RoW costs. As Wole Abu, Managing Director of Equinix West Africa, notes, RoW is just one factor in the overall cost of fiber deployment.
Understanding Local Demand Beyond Fee Structures
To illustrate this further, even states with substantial GDP figures, like Rivers and Akwa Ibom, lag in infrastructure despite their financial clout. Nigeria's rush to eliminate RoW fees began in 2013 with the National Executive Council proposing a standard fee of ₦145 ($0.09). Yet, many states veered off course with arbitrary charges aimed at boosting internal revenue, showing that local market conditions and demand significantly shape telecom investments.
The Road Ahead: Strategies for Improvement
For these fee-waiving states, the next crucial step lies in stimulating local demand. As telecom growth is intricately linked to financial viability, addressing purchasing power and consumer needs is vital in transforming the telecom landscape.
In conclusion, the elimination of RoW fees can act as a catalyst but is insufficient alone for enhancing telecom infrastructure. A multifaceted approach that considers market dynamics, local demand, and systemic reforms is indispensable for achieving the desired expansion across Nigeria's states.
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