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…Dismiss Telecom Tariff Hike Over NCC Cost Study
LAGOS – Telecom operators in Nigeria have blamed their reluctance to aggressively invest in infrastructure for more efficient operations on the challenges being faced in the hands of some states in the country that restrict them from the Right of Way (RoW) for the deployment of services.
While the country has been pushing to deepen digital adoption, one of the key impediments to fully realising this digital future is the struggle for accessible and affordable RoW to roll out the essential infrastructure due to various fees imposed by state governments.
RoW is the permission granted to telecom companies to install, maintain, and upgrade infrastructure, such as fibre optic cables, cell towers, and antennas on public or private property.
Speaking on the development which has become perennial in the telecoms industry, the Chairman of the umbrella body of the operators, Association of Licensed Telecoms Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, revealed a startling reality. According to him, delivering bandwidth from Lagos across international borders to Canada is currently cheaper than routing connectivity to several subnational states within Nigeria.
“While several state governments have publicly announced “zero-rate” Right-of-Way policies to attract telecom investments, it is now common knowledge that these promises are often offset by hidden fees.
“When states claim Right-of- Way is free, they turn around and hit operators with development charges, education levies, and infrastructure fees.
“These back-door levies make a total mess of the zero-RoW policy and drastically inflate the cost of delivering internet services to Nigerians outside major commercial hubs”, he said.
He, however, called for an immediate harmonisation of state and federal telecom policies, warning that without a unified regulatory framework, regional digital divides will continue to widen.
In acknowledgement of the economic challenges the restrictions of RoW pose to the telecom operators and the country as a whole, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, last year, expressed his feelings in stark terms.
“One of the most significant barriers to broadband deployment in Nigeria has been the high cost of Right of Way fees charged by state governments.
“Although the Nigerian Governors’ Forum had agreed on a uniform Right of Way (RoW) charge of N145 per linear metre, varying rates across states continue to cause delays and cost uncertainties for telecom operators.”
Despite attempted efforts by relevant stakeholders to assuage the plight of the network operators in the deployment of their infrastructure, no cogent results have been achieved.
In 2020, for instance, the Nigerian Governors’ Forum agreed to harmonise RoW charges at N145 per metre to reduce cost burdens for telecom operators. But six years down the line, the resolution has become a rhetoric as nothing much has been achieved.
According to NCC, only 11 states completely waived RoW fees, while 17 others have capped them at the agreed N145 benchmark.
Between 2023 and 2025, Adamawa, Bauchi, Enugu, Benue, and Zamfara states joined the list of states that have eliminated RoW charges altogether.
These policy shifts have made them models of digital cooperation, attracting new network investments and faster broadband rollouts. However, they represent less than one-third of the country, meaning the majority of Nigerian states still impose unpredictable costs that deter private-sector investment.
In recent times, the supposed rate of N145 RoW charges per metre has been indirectly replaced by multiple fees and charges by some states and local governments in the country.
Telecom operators say that each delay in fibre deployment slows down access to digital services, whether it’s mobile banking, online education, or e-health initiatives. Worse still, vandalism and infrastructure sabotage continue to compound the problem.
As part of their critical means for optimal operation, RoW quagmire is pushing telecom operators in Nigeria to face a low return on investment (ROI).
Other factors responsible for the low ROI include high operating costs, foreign exchange volatility, and slow consumer adoption of high-cost services. Others include expensive diesel for base stations, low 5G uptake from costly devices, and plunging foreign capital inflows.
ALTON also dismissed reports suggesting that the Nigerian Communications Commission’s (NCC) ongoing Mobile Termination Rate cost study will lead to another increase in retail telecommunications tariffs.
Engr. Gbenga Adebayo, ALTON chairman, clarified that the NCC’s exercise is focused solely on determining fair and cost-reflective wholesale interconnection charges paid by telecom operators to complete calls across different networks.
Speaking at the Nigeria Information Technology Reporters Association (NITRA) Innovative Conference 2026, Adebayo said the cost study is an evidence-based regulatory review that had not been conducted in eight years and is intended to reflect current market realities.
“There is currently no industry proposal before the NCC seeking a review of retail tariffs arising from this exercise,” he said, explaining that the commission has instead challenged operators to improve customer experience, expand network coverage and strengthen infrastructure resilience.
He noted that sustainable investment in telecommunications depends on transparent, objective and evidence-based pricing frameworks rather than speculation about retail price increases.
According to Adebayo, operators remain focused on improving service quality despite significant operational challenges, including unreliable electricity, fibre cuts caused by road construction, multiple taxation, insecurity, Right-of- Way bottlenecks and vandalism of telecommunications infrastructure.
He maintained that while operators remain accountable to subscribers, quality of service cannot improve through fines and penalties alone because many network disruptions arise from factors beyond the control of telecom companies.
The ALTON chairman praised recent collaboration between the NCC, the Federal Competition and Consumer Protection Commission (FCCPC) and other regulators, saying greater institutional coordination is becoming increasingly important as telecommunications, financial services and digital platforms continue to converge.
He also commended security agencies and the Office of the National Security Adviser (ONSA) for ongoing efforts to protect telecommunications infrastructure, noting that arrests of vandals and improved coordination with federal and state ministries are helping reduce network disruptions.
Adebayo reaffirmed ALTON’s commitment to working with the Federal Government, regulators and industry stakeholders to build a resilient, innovative and globally competitive telecommunications sector capable of driving Nigeria’s digital transformation.
