The Nigerian government has announced an ambitious N3.3 trillion ($2 billion) digital infrastructure plan aimed at closing the country’s digital divide and improving broadband access nationwide. The initiative, dubbed Project Bridge, is set to roll out by the fourth quarter of 2025. Led by the Ministry of Communications, Innovation, and Digital Economy, the plan includes the deployment of 90,000 kilometres of fibre optic cables and 7,000 telecom towers, targeting underserved and rural communities. According to Minister Bosun Tijani, the project could contribute up to 2.5% to Nigeria’s GDP.
Despite government optimism, there are growing concerns from consumers and industry stakeholders. Many argue that current service quality remains below par, and new financial strains may worsen the situation. A major point of contention is the reintroduction of a five percent excise tax on telecom services, proposed under the new Nigeria Tax Bill 2024. Industry leaders warn that the tax could further burden Nigerian consumers already facing inflation and rising costs, and potentially slow digital growth.
The telecom sector plays a crucial role in Nigeria’s economy, contributing about 16% to the national GDP, with projections to hit 22% by 2026. However, operators are burdened with more than 50 separate taxes, prompting fears that the investment climate could be compromised. Gbenga Adebayo, chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), has urged the government to treat telecom infrastructure as essential, not as a luxury commodity subject to sin taxes.
Nevertheless, the government remains confident in its digital transformation strategy. Foreign Direct Investment in the sector surged to $191 million in the first quarter of 2024, up from $22 million the previous year. Additionally, over 117,000 individuals have received training under the 3MTT (Three Million Technical Talent) programme, a key workforce initiative to support the growing digital economy. Minister Tijani views this as a significant step toward reducing poverty through technology.
To complement the government’s efforts, telecom operators are investing $1 billion in network equipment, primarily sourced from Chinese manufacturers. The new equipment, expected to begin arriving by July 2025, will enhance internet speeds, reduce call drops, and extend services to neglected regions. Experts, however, warn that for Nigeria’s digital future to be successful, policies must be consistent, access must remain affordable, and efforts must focus on inclusivity to avoid widening the digital gap.
Source: Leadership