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Nigeria: MTN Spends N11bn on Fibre Repairs, Highlighting Infrastructure Challenges

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MTN Spends N11bn on Fibre Repairs, Highlighting Infrastructure Challenges
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MTN Nigeria, the country’s largest telecom operator, has expended N11.1 billion on repairing and relocating 2,502km of fibre-optic cables over the past two years, according to findings from the latest GSMA Nigeria Digital Economy Report.

The report underscores that these substantial costs, if redirected towards network expansion instead of maintenance, could have enabled the deployment of an additional 870km of new fibre infrastructure.

Rising Costs of Fibre Maintenance

Data from the report shows that MTN Nigeria allocated N4.4 billion in the 2022 financial year to repair 1,069km of fibre and an additional N6.7 billion in 2023 to fix 1,433km. The primary causes of these damages include construction activities, road projects, and acts of vandalism, which have significantly impeded network expansion.

The diversion of financial resources to repairs has hindered the expansion of coverage in underserved regions, ultimately slowing Nigeria’s broadband penetration.

“As a result, fibre networks in Nigeria are more expensive to build and maintain than they otherwise would be. These costs are substantial,” the report stated. “For instance, MTN Nigeria was required to relocate 1,069km of fibre cables in 2022 and a further 1,433km in 2023, with budgets of N4.4 billion and N6.7 billion, respectively.”

Impact on Connectivity and Consumer Experience

Angela Wamola, Head of Sub-Saharan Africa at GSMA, highlighted the impact of persistent fibre cuts during a media briefing.

“Vandalism and other forms of damage have been causing significant financial losses to the telecom sector. While some areas can be quickly repaired, continued damage leads to prolonged service disruptions and increased complaints from consumers,” she noted.

Fibre-optic cables are critical to Nigeria’s telecom infrastructure as they enhance network capacity and enable connectivity. As of 2023, the country had deployed 78,676km of fibre-optic cable, with the highest concentration in urban areas such as Lagos (7,864.60km), Edo (4,892.71km), FCT (4,472.03km), Ogun (4,189.18km), and Niger (3,681.66km).

Strategies to Mitigate Fibre Cuts

To address frequent fibre damages, telecom operators have implemented proactive strategies, such as incorporating additional protective measures in infrastructure planning and increasing maintenance budgets. However, these measures have significantly raised overall telecom infrastructure costs in Nigeria.

In August 2023, the federal government issued the official gazette, ‘Designation and Protection of Critical National Information Infrastructure Order, 2024’, aimed at safeguarding vital telecom assets. According to the Minister of Communication and Digital Economy, Bosun Tijani, the legislation criminalizes willful damage to critical infrastructure, including telecom towers, fibre-optic cables, and data centres.

If passed into law, this bill would provide legal protection for telecom infrastructure, mitigating damages and reducing the financial burden on operators. However, regulatory delays have left the industry vulnerable to continued infrastructure disruptions.

Regulatory Intervention Needed for Sustainable Broadband Growth

With mounting costs for network maintenance, industry stakeholders warn that prolonged policy inaction could slow Nigeria’s broadband expansion and negatively impact businesses and consumers reliant on stable connectivity. Regulatory technology solutions must be strengthened to ensure robust infrastructure protection, compliance enforcement, and sustainable network growth.

As Nigeria aims for deeper digital transformation, a strategic combination of regulatory compliance, risk mitigation, and enhanced infrastructure governance will be essential in securing the country’s telecom assets and driving economic progress.

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