In a bid to boost digital infrastructure development, 12 Nigerian states have officially waived Right of Way (RoW) fees, a move aimed at attracting telecom infrastructure investments. However, experts argue that this step is only the beginning of a much larger and more complex equation to achieve digital inclusion in the country.

The 12 states, including Zamfara, Katsina, Anambra, Kebbi, Nasarawa, Bauchi, Adamawa, Kaduna, Ekiti, Imo, Plateau, and Niger, have taken this step to encourage telecom operators to invest in their regions. While Lagos, the country's commercial hub, still charges RoW fees ranging from ₦850 ($0.53) to ₦1,500 ($0.93) per metre, it has the highest fibre deployment in the country, with 7,864.60 kilometres of laid fibre as of 2023.

According to Wole Abu, Managing Director of Equinix West Africa, waiving RoW fees is just one component in the cost breakdown of fibre deployment. "You must still estimate customer demand, as return on investment depends on revenue generation," Abu said. "If you deploy fibre to a community with insufficient demand or purchasing power, the business case will fail. Waiving right-of-way fees is a good first step to incentivise investment. I believe stimulating local demand is another crucial step in this process."

The Nigerian Communications Commission (NCC) and the Federal Ministry of Communications have repeatedly emphasized RoW reform as a catalyst for digital inclusion. However, real-world outcomes suggest that the elimination of fees hasn't been enough to spark the infrastructure boom envisioned. The push to harmonise RoW charges across Nigeria began in 2013, but many states disregarded the directive, continuing to impose arbitrary and often excessive charges as a means of boosting internally generated revenue (IGR).

The decision to eliminate fees varies by state, often influenced by local conditions. In Niger State, the government waived RoW fees for a few operators in September 2024 primarily due to a surge in fibre cuts caused by extensive road construction. The state's Commissioner for Communications Technology and Digital Economy, Suleiman Isah, explained that the governor approved zero-naira RoW compensation to encourage telecom investments by lowering the barriers to entry.

Despite the push for harmonisation, only 12 out of Nigeria's 36 states have fully waived RoW fees. While the Federal Capital Territory (FCT) and Kwara State charge minimal fees, many others still present challenges. Telecom operators remain cautious, deterred by inconsistent regulations at the state and local levels. Even in states offering free RoW, the lack of uniformity, overlapping rules, and added levies create a complex and costly compliance landscape that limits large-scale investment.

Securing permits for telecom infrastructure deployment in Nigeria remains deeply hindered by bureaucratic red tape. Lengthy approval processes at state and local government levels frequently cause significant delays. Even after installations are completed, some infrastructure faces disruption due to harassment or arbitrary shutdowns stemming from conflicting enforcement by multiple regulatory bodies.

Adding to these challenges is the opaque implementation of RoW waivers. Many of these waivers are granted through executive orders rather than legislation, leading to inconsistent enforcement. Telecom operators often encounter hidden or informal "administrative fees" that drive up costs, despite the existence of official zero-fee policies. In some cases, local authorities impose levies that directly contradict their state's waiver commitments, further undermining investor confidence and complicating deployment efforts.

However, some states are taking proactive steps to streamline the process and reduce barriers for network operators. Niger State has introduced a more predictable framework, where operators are required to pay a one-time, non-refundable application fee of ₦500,000 ($311.8). This fee covers both initial deployments and future expansions. Anambra State has adopted a different but equally facilitative approach, where network operators can apply at no cost to the state's physical planning agency, and applications are reviewed in collaboration with the Anambra State ICT Agency.

Nigeria's broadband growth also hinges on developing "middle-mile" infrastructure—terrestrial fibre networks that connect subsea cable landing stations to end users inland. The Federal Ministry of Communications' new Broadband Alliance aims to bridge this gap, but its success depends on collaboration across federal, state, and private actors.

The right-of-way dilemma mirrors broader governance issues: decentralised responsibilities, inconsistent policies, and fragmented implementation. Until these structural challenges are addressed, Nigeria risks falling short of its broadband penetration target of 70% by the end of 2025—it currently sits at just 45%.

In conclusion, while the waiver of RoW fees is a step in the right direction, it is only the beginning of a complex equation to achieve digital inclusion in Nigeria. The country needs to address the underlying infrastructure challenges, streamline regulations, and foster a more conducive environment for telecom investments to achieve its broadband goals.