11 States waive right of way charges for telcos to drive nationwide broadband expansion

Nigeria’s Minister of Communications and Digital Economy, Dr Bosun Tijani, has revealed that 11 states have agreed to waive the Right of Way (Row) charges on telecom infrastructure. The request to waive the charges was made by the federal government in a bid to facilitate broadband expansion.

The Minister disclosed this decision as President Bola Tinubu had received the reports of the participants of Senior Executive Course 46 National Institute for Policy and Strategic Studies (NIPSS), Kuru.

Right of Way charges are the fees paid by telecom companies to state governments in order to obtain access to install, maintain and upgrade their service infrastructure. Such infrastructure could include cell towers, fibre optic cables, and antennas on either public or private property in any state within Nigeria. 

Waiving RoW charges to boost broadband expansion

Telecom operators have been calling for an intervention for the reduction of the Right of Way charges as it seems to be a financial barrier to their operations.

You will recall that before the recent development, only 7 of the 36 states had responded to the request to waive the charges, with Anambra state being the last to join them back in 2021. 

In January 2020, Nigeria’s telecom sector appeared to have made headway as regards the RoW controversy after the 36 state governors unanimously agreed to review charges to a maximum of N145 per linear metre of fibre. However, some states reneged on that agreement.

Currently, 18 states have agreed to review the charges, thereby putting the telecom companies in a more favourable financial position to expand their broadband infrastructure. Tijani expressed his optimism, noting that all states within the federation will renege with the initiative before the end of May 2025. 

The minister’s disclosure follows a recommendation from 96 participants of the Senior Executive Course 46 at the National Institute for Policy and Strategic Studies (NIPSS) in Kuru. They met with President Bola Tinubu and submitted a report titled “Digital Economy, Youth Empowerment and Sustainable Job Creation in Nigeria: Issues, Challenges and Opportunities.”

Amid tariff hikes and increasing telecom infrastructure costs

The state’s decision could however be linked to the recent 50% hike in data price by network providers. The hike had been approved by the Nigerian Communications Commission (NCC), marking the first major adjustment since 2013. This decision was driven by rising operational costs and an inflation rate of 34.8%.

With inflation rates soaring and the cost of living at an all-time high, the tariff hike was seen not just as an increase in service fees but as an assault on the economic well-being of millions who are living below the poverty line.

Furthermore,  telecom operators have welcomed the move, noting that waiving the RoW charges could significantly reduce operational costs and accelerate the deployment of telecom infrastructure. They believe that the initiative will help extend network coverage to underserved areas and create a more competitive market that ultimately benefits consumers with improved connectivity.

Policy recommendations for Nigeria’s digital economy initiatives

GSMA, the global body for mobile operators, estimated that if charges for RoW were reduced in all states to the agreed level of N145 per metre, it could cut the cost of national network rollout by around 15%. This significant cost reduction is expected to boost investments in telecom infrastructure and accelerate the expansion of broadband services nationwide.

With lower operational expenses, industry experts predict that the initiative will create a more competitive market, benefiting both operators and consumers. As stakeholders push for full state compliance, the move underscores Nigeria’s commitment to a robust digital economy and sustainable job creation, paving the way for a more connected future.