The high cost of deploying telecommunications infrastructure, multiple taxation, Right of Way (RoW) charges, insecurity, and costly power supply are threatening efforts to extend quality broadband services to underserved communities across Nigeria.
Industry stakeholders who spoke at the Lagos Chamber of Commerce and Industry (LCCI) ICTEL Expo in Lagos said the country could accelerate broadband expansion by reducing infrastructure duplication and adopting more open-access and infrastructure-sharing models.
The stakeholders also warned that increasing broadband penetration alone would not be sufficient if the quality, reliability and affordability of services remain poor.
Speaking at a panel session titled “Broadband, Fibre & Telecoms Infrastructure: Solving Nigeria’s Connectivity Gap,” Oluseyi Lala, Divisional Chief Executive Officer, ipNX Business, said the economics of broadband deployment remained a major obstacle, particularly in areas with low population density.
“Deploying broadband infrastructure is capital-intensive. The cost of building infrastructure, providing reliable power, transporting equipment to remote locations, and maintaining networks in difficult terrains significantly impacts deployment economics,” Lala said.
He, however, argued that operators should look beyond fibre deployment and combine different technologies while reducing unnecessary duplication of infrastructure.
“Achieving Nigeria’s broadband ambitions will require more than fibre alone. We need to leverage both fibre and wireless technologies, encourage greater collaboration among operators, and embrace infrastructure-sharing models that reduce unnecessary duplication of investments,” he said.
The call comes amid persistent concerns over the cost and pace of broadband infrastructure deployment, particularly outside major commercial centres where lower population density can make private investment less attractive.
Lala said competition in the telecommunications sector should increasingly be based on the quality of services and customer experience rather than competing to build identical physical networks along the same routes.
“If one operator has already deployed fibre along a route, there is little value in having multiple operators excavate the same corridor to install parallel infrastructure,” he said.
He advocated innovative infrastructure-sharing arrangements that would enable operators to utilise existing networks while directing capital towards underserved locations.
Also speaking, Obinna Adumike, Head of Converged Digital Infrastructure for Africa at Open Access Data Centres, said Nigeria’s geographical structure compounds the cost of extending connectivity inland.
According to him, submarine cables primarily land along the coastal regions, leaving operators to commit additional resources to move capacity into the hinterland.
“We should not continue duplicating fibre infrastructure. Open-access and shared infrastructure models make network expansion easier, reduce costs, and improve access.” Adumike said.
He noted that infrastructure sharing was already established in other parts of the global telecommunications ecosystem, arguing that Nigeria could adapt similar models to its operating environment.
“The majority of submarine cable systems were built through joint ventures and shared investment models. Nigeria should adopt approaches that work for our local operating environment,” he said.
The panel identified regulatory and operating challenges that continue to increase the cost of telecoms infrastructure which is beyond its construction, as these include inconsistent implementation of RoW reforms by state governments, multiple layers of taxation, security risks, high energy costs and regulatory complexities.
The challenges are particularly significant for operators seeking to extend networks into rural and underserved communities, where infrastructure costs can be difficult to recover from relatively small customer bases.
Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, meanwhile, called for stronger protection of telecommunications infrastructure and tougher consequences for vandalism and other forms of damage.
Adebayo also raised concerns over how infrastructure-sharing arrangements would affect existing investors, stressing the need for an equitable contribution model that would prevent companies that invested early in infrastructure from being disadvantaged.
