RoW Charges: Telcos Harp On Total Waiver To Boost Broadband Penetration

In a bid to accelerate the expansion of broadband infrastructure across Nigeria, telecommunications companies (telcos) are urging the federal and state governments to implement a total waiver on Right-of-Way (RoW) charges.

The call comes as stakeholders emphasised the critical role of affordable and widespread broadband access in driving economic growth, digital inclusion, and national development.

The push for a RoW waiver is part of a broader effort to bridge Nigeria’s digital divide and unlock the potential of its burgeoning tech ecosystem.

With over 200 million people, Nigeria is Africa’s largest economy and home to a rapidly growing population of internet users.

However, broadband penetration currently stands at just 48 per cent, leaving millions without access to reliable internet services.

Experts believe that a total waiver on RoW charges could serve as a catalyst for economic growth, enabling small businesses to thrive, improving access to online education, and facilitating the delivery of e-government services.

It could also enhance Nigeria’s competitiveness in the global digital economy. As the debate continues, stakeholders are hopeful that the federal and state governments will heed the call and take decisive action to support the telecom industry.

For now, the ball is in the court of policymakers, who must weigh the immediate financial implications against the transformative potential of a fully connected Nigeria.

Right-of-Way fees, which are levied by state governments for the installation of fiber optic cables and other telecommunications infrastructure, have long been a contentious issue in Nigeria.

Telcos argue that the high and inconsistent charges across states have significantly hindered the deployment of broadband networks, particularly in rural and underserved areas.

At a recent industry forum held in Abuja, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) highlighted the urgent need for a unified and waiver-based approach to RoW charges.

According to ALTON, the current RoW regime not only increases the cost of broadband deployment but also discourages investment in critical digital infrastructure.

Industry experts estimate that Nigeria requires an additional 40,000 to 60,000 kilometers of fiber optic cables to achieve its target of 70% broadband penetration by 2025.

However, the high cost of RoW permits, which can range from N3,000 to N6,000 per linear meter depending on the state, has slowed progress.

In some states, RoW charges account for up to 70 per cent of the total cost of laying fiber cables. “Waiving RoW charges will significantly reduce the financial burden on telcos and encourage faster rollout of broadband infrastructure.

“This is not just about the telecom industry; it’s about enabling a digital economy that benefits every sector, from education and healthcare to agriculture and finance,” Chairman of ALTON, Gbenga Adebayo, said.

The Nigerian Communications Commission (NCC) has also thrown its weight behind the proposal, noting that a waiver would align with the federal government’s National Broadband Plan (2020-2025).

The plan aims to provide affordable internet access to all Nigerians and position the country as a leader in Africa’s digital transformation.

While some state governments have expressed willingness to review their RoW policies, others remain hesitant, citing revenue generation as a key concern.

However, stakeholders argue that the long-term economic benefits of increased broadband penetration far outweigh the short-term gains from RoW fees. NCC EVC, Amino Maida, said: “States that prioritize broadband infrastructure will attract more investments, create jobs, and improve the quality of life for their citizens.

“We are calling for a collaborative approach between the federal government, states, and the private sector to make this a reality.”

Meanwhile, the Minister of Communications and Digital Economy, Dr Bosun Tijani, recently announced that 11 states have agreed to waive the Right of Way (Row) charges on telecom infrastructure following the request to waive the charge by the federal government in a bid to facilitate broadband expansion.