Twelve Nigerian States Scrap Right of Way Fees to Boost Rural Broadband Access

In a significant move to enhance broadband infrastructure and promote digital inclusion, twelve Nigerian states have waived Right of Way (RoW) fees to attract greater broadband investment, especially in rural and underserved communities.

States including Zamfara, Katsina, Anambra, Kebbi, Nasarawa, Bauchi, and Adamawa — collectively accounting for over 31.17 million mobile subscriptions — are easing barriers to network expansion by reducing infrastructure deployment costs for telecom operators.

The Right of Way (RoW) fee, traditionally charged by state governments to telecom providers for laying fibre optic cables and related infrastructure, has long been a major obstacle to nationwide broadband deployment. Fibre optic infrastructure, critical for high-speed data transmission and connecting mobile network sites, is essential for Nigeria’s digital economy, where broadband penetration stood at 45.61% as of January 2025. This comes amid surging internet data consumption, which exceeded 1 million terabytes during the same period, highlighting the growing demand for digital services.

Despite Nigeria’s substantial internet capacity along its coastline, limited inland fibre deployment has stifled access, largely due to prohibitive RoW costs. “Nigeria has fast internet capacity on its shores, but this capacity cannot reach people without fibre. RoW challenges have gotten in the way of this over the years,” an industry expert noted.

Data from the Ministry of Communications, Innovation and Digital Economy reveals that only 39% of Nigerians currently live within five kilometers of fibre networks, with the national fibre backbone covering just about 35,000km. High RoW fees have deterred investment in expanding this critical infrastructure. In an earlier resolution, state governors agreed to standardize RoW charges at N145 per metre, aiming to lower deployment costs. However, implementation has been inconsistent, with several states either ignoring the agreement or significantly inflating charges. For instance, Ebonyi State reportedly charges up to 69 times more than Ekiti State, which maintains the lowest rates.

Following persistent advocacy efforts by the Nigerian Communications Commission (NCC), twelve states, including Niger State as the most recent, have now scrapped RoW fees altogether. Instead, operators will pay a one-time, non-refundable application fee of N500,000, providing a much-needed incentive for infrastructure investment. Collectively, these states aim to expand their fibre network coverage — currently spanning approximately 14,223.76km — to better serve their citizens.

“Eliminating Right of Way fees for telecommunication infrastructure can significantly lower the cost of network deployment, thereby accelerating digital inclusion and providing residents with better access to educational resources, healthcare services, and economic opportunities,” noted officials from Niger State.

Industry group GSMA projects that standardizing RoW fees at N145 per metre across all states could reduce Nigeria’s total broadband rollout costs by around 15%. With more states waiving fees, telecom operators are expected to ramp up investment in network expansion, improving access across underserved regions.

Despite increasing internet demand, infrastructure and affordability challenges persist. GSMA data shows that over 120 million Nigerians remain offline due to limited connectivity, while the NCC reports that 23 million people still lack telecom access entirely. Furthermore, 301 local government areas remain without internet coverage, underscoring the urgency of addressing infrastructure gaps.

Aminu Maida, Executive Vice Chairman of the NCC, stressed that eliminating RoW charges is vital to fostering a more conducive environment for telecom investments. “Waiving RoW fees creates an enabling environment for telecom investment, increases connectivity, drives economic growth, and enhances access to digital services,” Maida said.

As regulatory frameworks continue to evolve, streamlining Right of Way processes will play a pivotal role in accelerating Nigeria’s digital transformation and ensuring broader access to regulatory technology solutions, compliance software, and financial services critical to inclusive economic growth.