Alex Omenye
The Federal Government will provide 50% of the $2 billion needed to implement Nigeria’s 90,000-kilometer fibre optic project, according to Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy.
Speaking on Arise TV on Friday, Tijani revealed that the government’s contribution will be secured through loans as part of its borrowing plans for 2025.
Earlier this year, the Federal Executive Council approved the establishment of a special purpose vehicle to deploy the fibre network across the country.
The government’s share, amounting to nearly $1 billion, will be financed through loans, while private companies are expected to contribute the remaining funds.
The project has garnered significant support from President Bola Tinubu, the Ministry of Finance, and other key stakeholders, including the World Bank, Tijani noted. He expressed optimism that work on the project, which includes digging for cable installation, will begin in the second quarter of 2025.
Tijani emphasized the need for government investment in digital infrastructure, stating that many Nigerians currently experience poor connectivity due to the limited investment by private operators.
He argued that businesses tend to invest in regions where returns are guaranteed, which often leaves rural and underserved areas with inadequate infrastructure.
He outlined two options for expanding Nigeria’s digital economy: either relying on private sector investment, or having the government take a more proactive role, as seen in other progressive nations.
The latter approach, according to Tijani, led to the creation of the SPV, which will be managed as a private entity with government representation.
The 90,000km fibre project aims to increase internet penetration in Nigeria to over 70% and reduce internet access costs by more than 60%.
It is also expected to help connect over 50% of the 33 million Nigerians currently without internet access and contribute to GDP growth of up to 1.5% per capita over the next four years.
