The Federal Government has approved a special purpose vehicle for the delivery of an additional 90,000 km fibre optic cable to ensure universal internet access in Nigeria
This was disclosed in a statement by the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani on Tuesday, according to The Punch.
An SPV is a separate legal entity created to achieve a specific objective or project. In this context, the fibre optics project will be managed by an SPV responsible for its implementation, financing, and operations.
Tijani said that the project would enhance the National Broadband Network for Internet Access and make use of eight submarine cables that have already been laid in Nigeria.
According to him, the project was expected to increase Nigeria’s fibre optic cable capacity from 35,000 kilometres to 125,000 km, making it Africa’s third-longest terrestrial fibre optic backbone behind South Africa, and Egypt.
Tijani said the Ministry had started working on setting up a Special Projects Vehicle, which would be similar to some of Nigeria’s best Public Private Partnership schemes such as NIBSS and NLNG in terms of governance and operations.
The minister explained, “This extensive coverage will enable us to optimise the unique benefit of having eight submarine cables already landed in Nigeria and, therefore, drive uptake of the data capacity that the cables offer beyond the current usage level of 10 per cent.
“Building on our existing work with the Broadband Alliance, this increased connectivity will help plug the current non-consumption gap by connecting over 200,000 educational, healthcare and social institutions across Nigeria, ensuring that a larger section of our society can be included in the benefits of internet connectivity.”
Tijani said that the project would also ensure access for at least 50 % of Nigeria’s 33 million citizens who are currently excluded from accessing the Internet.
He underlined that the project is expected to have a significant impact on the country’s economy, with GDP projected to grow by up to 1.5 % per capita over the next four years, increasing GDP from $472.6 billion in 2022 to $502 billion in the following four years.
According to a report by the Groupe Special Mobile Association last week, 71 per cent of Nigerians do not have regular access to mobile internet.
It was noted that with the right policies in place, Nigeria could grow to 15 million internet users by 2028; however, without universal access to digital connectivity, a wider digital transformation of the Nigerian economy cannot be achieved.
The report stated, “While 29 per cent of Nigerians are regularly using mobile internet, there remains untapped potential; 71 per cent are not accessing these services regularly.
“An improved policy environment has the potential to help the industry boost coverage and adoption, resulting in 15 million additional internet users by 2028. However, the sector faces challenges to infrastructure deployment”.
