Telecom Analyst Urges Unified RoW Charges, Local Equipment Production to Boost Nigeria’s Digital Future

A telecom analyst, Osita Odafi, has called on the Federal Government to harmonise right-of-way (RoW) charges across Nigeria and encourage local production of telecom equipment. In a statement shared with The PUNCH, he warned that without urgent reforms, Nigeria’s telecom infrastructure may not be able to support the rollout of 5G, smart cities, and AI-powered services essential for the country’s digital transformation. Odafi emphasized that inconsistent policies, including exorbitant RoW fees, power instability, and reliance on imports, are threatening progress.

The Nigerian Communications Commission (NCC) has set RoW charges at N145 per meter, but many state governments demand up to N10,000 per meter. Odafi highlighted that only 12 states have adopted the NCC’s recommended fee, while others continue to impose arbitrary levies under different guises. This situation, according to him, severely hampers the expansion of fibre optic networks, which are vital for broadband growth and digital access in rural areas.

He further pointed out that the volatility of foreign exchange rates and the overdependence on imported telecom equipment drive up costs for operators. Odafi urged the Central Bank of Nigeria to collaborate with telecom stakeholders to support backward integration and promote local manufacturing. He acknowledged CBN Governor Olayemi Cardoso’s advocacy for local production but stressed that the effort needs robust policy backing, including tax incentives and consistent regulation.

Another major concern raised by Odafi was the high diesel usage by telecom operators—exceeding 40 million litres monthly—which poses sustainability and cost challenges. He commended efforts by the NCC and the Rural Electrification Agency to transition base stations to solar energy. However, he warned that Nigeria risks missing its 70% broadband penetration goal by 2025 if bold and immediate actions are not taken to secure and expand network infrastructure.

Additionally, Odafi drew attention to the frequent fibre optic cuts, citing over 50,000 incidents in 2024, 60% of which were due to government road works. He advocated for stronger enforcement of President Bola Tinubu’s designation of telecom infrastructure as Critical National Information Infrastructure. Odafi concluded that the deployment of 90,000km of fibre and 7,000 rural base stations must be fast-tracked to ensure Nigeria remains competitive in the digital economy.

Source: Punch