The Federal Government has been called upon to harmonise right-of-way charges across Nigeria and incentivise local manufacturing of telecom equipment as part of urgent reforms to prepare the country for the demands of a digital economy.

In a memo shared with The PUNCH, telecoms analyst Osita Odafi warned that while Nigeria has made significant gains in mobile and internet penetration, its telecom infrastructure is ill-equipped to handle the emerging demands of 5G, smart cities, and AI-powered services.

“Nigeria’s digital future rests on the strength of its networks,” Odafi said. “But the system is hampered by inconsistent RoW fees, unreliable power supply, forex volatility, and dependence on imported equipment.”

The Nigerian Communications Commission recommends a uniform RoW fee of N145 per metre for fibre optic cable deployment. However, several states still impose rates as high as N10,000 per metre, discouraging broadband investment.

Odafi noted that only 12 states have aligned with the NCC’s directive, while others continue to impose arbitrary fees, often disguised as environmental or processing charges.

He also identified foreign exchange challenges and the reliance on imported network components as major cost drivers. He urged the Central Bank of Nigeria to work with industry players to promote local manufacturing, backing CBN Governor Olayemi Cardoso’s recent call for domestic production with tax incentives, funding support, and regulatory clarity.

Highlighting other structural issues, Odafi noted that the sector consumes over 40 million litres of diesel monthly—a heavy burden amid high energy costs. He commended recent efforts by the NCC and Rural Electrification Agency to support solar energy adoption at telecom sites.

Odafi warned that Nigeria risks missing its 2025 broadband penetration target of 70% unless infrastructure rollout is prioritised. He cited over 50,000 fibre cuts in 2024—60% linked to government roadworks—and urged the government to enforce President Bola Tinubu’s designation of telecoms as Critical National Infrastructure through stronger protections and public awareness.

He called for accelerated deployment of the proposed 90,000km national fibre backbone and 7,000 rural base stations. “Time is running out,” he said. “If Nigeria wants to lead in the global digital economy, infrastructure must come first.”