Ogun State, which boasts 4,189.18 kilometres of fibre optic cable, charges the highest right-of-way fees in Nigeria, with a staggering ₦9,477 per linear metre. This is according to an exclusive list obtained from telecom industry operators, highlighting the fragmented and often burdensome nature of right-of-way governance in the country.

The list, compiled in March 2024, reveals that Osun State, with one of the lowest levels of fibre deployment at just 64 kilometres, is the second most expensive state for right-of-way fees, charging ₦6,850 per linear metre. Lagos, which leads Nigeria in fibre coverage with 7,864.6km, charges ₦6,264 per metre, making it the third most expensive state.

Other high-fee states include Oyo (₦5,303), Cross River (₦4,737), Rivers (₦4,047), Edo (₦3,491), and Ondo (₦3,075). In contrast, some states have more affordable rates, such as Sokoto and Jigawa, which charge ₦3,000; Benue and Bayelsa, which charge ₦2,500; and Abia, Taraba, and Akwa Ibom, which charge ₦2,000.

The National Economic Council (NEC) recommended a fee of ₦145 per metre in 2013 to streamline costs and promote nationwide fibre deployment. However, with no legislation behind it, many states ignored the directive and imposed arbitrary fees. Some progress was made after a January 2020 meeting between the then Minister of Communications and Digital Economy, Isa Ali Pantami, and the Nigerian Governors' Forum, resulting in 16 states revising their fees. Twelve states have eliminated the fees, while Delta, Enugu, Ebonyi, and the Federal Capital Territory (FCT) now charge the NEC-recommended ₦145.

For some states, waiving right-of-way fees is a deliberate strategy to attract telecom investments beyond just urban centres. Anambra State, which has deployed over 1,000km of fibre, aims to extend coverage statewide by waiving the fees. "If telcos judged every investment strictly by profit, only commercial zones would get infrastructure," said Chukwuemeka Fred Akpata, Managing Director of the Anambra State ICT Agency. "By waiving right-of-way, we're encouraging deployment in underserved areas."

Niger State has also adopted a similar approach, passing a law adopting the ₦145 standard fee before issuing an executive order in September 2024 to waive the fee altogether. "The ₦0 right-of-way fee is based on executive order, but the ₦145 is law," said Suleiman Isah, Commissioner for Communications and Digital Economy, Niger State. "If the investment we attract in the next year or two outweighs what we made from fees, we'll amend the law permanently."

Telecom operators have often negotiated these fees and received reduced fees in a few states. In 2021, the Association for Licenced Telecommunication Operators of Nigeria (ALTON) negotiated a reduced Right of Way fee with the Lagos State Government. Similarly, Edo State eliminated Right-of-Way fees for a few telecom operators, enabling them to extend internet connectivity to numerous government offices and public institutions.

However, Gbenga Adebayo, President of ALTON, argues that while removing right-of-way fees is a step forward, it is not a sustainable solution on its own. "The era of state governments charging Right-of-Way fees should be over," Adebayo said. "When states impose these fees, they lose out on the broader benefits of digital infrastructure. Instead of charging right-of-way fees, states should require telecom operators to deliver social impact projects."

Adebayo added that some states, despite officially waiving right-of-way fees, impose hidden costs such as education taxes and highway levies, which discourage investment. In contrast, states like Kwara have successfully attracted impactful projects, including a multi-million dollar ICT hub, the Ilorin Innovation Hub.

The inconsistencies in right-of-way policies continue to influence where fibre infrastructure is deployed, deepening regional disparities in digital access. While some states leverage fee waivers to draw long-term investment, others risk missing out by imposing high entry costs. Without a unified and enforceable national right-of-way framework, Nigeria's ambition for universal broadband coverage will remain uneven and fragmented.