As of 2025, 12 Nigerian States, including Zamfara (Kaduna), Katsina (Anambra), Nasarawa (Bahri), Adamawa, Kaduna and Kaduna have officially waived Right of Way fees to attract investments in telecom infrastructure. These states are willingly sacrificing vital revenue but are finding that waiving fees only begins a larger and more complicated equation.
Lagos is Nigeria’s undisputed top leader with 7,864.60 km of laid fibre by 2023 despite charging RoW fee The range is N850 ($0.53) up to N1,500 (0.93) per metre.Edo (4.892.71km), Federal Capital Territory (4.472.03km) and Ogun (4.189.18km), are also leading the way. None of these states have eliminated RoW charges. Niger and Kaduna are two of the fee-waiver state, and they are a rare example. They rank fifth and sixth in fibre deployment, with 3,681.66km, and 3,028.88km, respectively. This trend suggests fee waivers are not the only factor that determines investment. Telecom operators continue to pay more attention to states with strong infrastructures, investor-friendly policies and bureaucracies that are functional, as well as urban population density, regardless of the right-of-way charges.
Wole Abu is the Managing Director of Equinix West Africa and told TechCabal right-of-way charges are only one component of the cost breakdown for fibre deployment.
Abu said, “You still have to estimate customer demand because return on investment is dependent on revenue generation.” “If you deploy fiber to a community that has insufficient purchasing power or demand, the business case is doomed. The first step in encouraging investment is to waive right-of-way charges. I believe that stimulating local demand is a crucial step in this procedure.”
Although states like Rivers and Akwa Ibom have impressive Gross Domestic Product figures, they lag behind Lagos both in total and per capita terms. While Lagos boasts a Gross Domestic Product of N41.17 trillion ($102 billion) and a GDP per person of $6,614, Rivers State’s GDP is N7.96 trillion, with a $2,277 per capita GDP, while Akwa Ibom has a N7.77 trillion GDP with a $2,962 per capita GDP.
RoW is the legal permission that telecom providers require to install critical infrastructure, such as fibre optic cables and towers on public or private land. This infrastructure is essential for digital services and broadband connectivity. The Nigerian Communications Commission and the Federal Ministry of Communications both have repeatedly emphasized RoW reform as an important catalyst for digital inclusion. The elimination of fees did not lead to the infrastructure boom that was envisioned.
In 2013, the National Executive Council (NEC), which is Nigeria’s top executive body, proposed a standard fee for RoW of N145 ($0.09) a linear metre. The goal was to reduce prohibitive costs and streamline infrastructure deployment. Many states ignored the directive and continued to impose arbitrary, often excessive charges in order to boost their own revenue (IGR). After Isa Ali Pantami’s push in 2020 and 2025 as Minister of Communication and Digital Economy pushed for the reduction or elimination of RoW fees, some states finally complied with federal recommendations.
State-specific conditions often influence the decision to eliminate fees. In September 2024, the Niger State government waived RoW charges for a small number of operators due to an increase in fibre cuts caused primarily by extensive road construction.
Our governor is building 1,200 kilometers of roads in his first full year in office. Suleiman ISAH, the state Commissioner for Communications Technology and Digital Economy, said that as a result of this, there have been numerous fibre cuts. The NCC reported 230 fibre cuts between January and February 2025. This is why the governor approved zero-naira RoWas Compensation.”
Isah stated that the second reason was to encourage telecom investment by lowering entry barriers.
Despite efforts to harmonise, only 12 of Nigeria’s 36 state have completely waived RoW charges. The Federal Capital Territory (FCT), and Kwara State, charge minimal fees – N145 and N1, respectively – but many others still face challenges. Telecom operators are cautious due to inconsistent regulations at state and local levels. Even in states that offer free RoW, the lack uniformity, overlapping regulations, and additional levies creates a complex and expensive compliance landscape, which limits large-scale investments.
The bureaucratic red-tape in Nigeria continues to make it difficult for telecom infrastructure deployments. The lengthy approval processes at the state and local levels often cause significant delays. Even after installation, some infrastructure is disrupted by harassment or arbitrary shut downs resulting from conflicting enforcement of multiple regulatory bodies.
The opaque implementation of RoW waives adds to these challenges. These waivers are often granted by executive orders, rather than legislation. This leads to inconsistent enforcement. Telecom operators are often hit with “administrative” fees that are hidden or informal, which drive up costs despite official policies of no-fees. Local authorities sometimes impose fees that are in direct contradiction to the state’s waiver policies, which undermines investor confidence and complicates deployment efforts.
Despite widespread challenges in Nigeria’s telecom infrastructure deployment, some states are taking proactive measures to streamline the process.
Niger State introduced a more predictable framework: operators must pay a non-refundable, one-time application fee of N500,000 ($311.8). This fee covers initial deployments as well as future expansions. Even if the company has its permit for a decade, it doesn’t need to pay another fee to expand its network.
If you applied 10 years back and want to expand your current network, you do not need to pay a new fee. Isah explained that you only need to inform your state that you are expanding.
Anambra State adopted a similar but equally facilitating approach. The state’s physical planner will accept applications from network operators at no charge. Applications are reviewed in collaboration between the Anambra State ICT Agency and the Anambra State ICT Agency. This helps assess their technical feasibility and spatial feasibility.
“We avoid multiple digging. Chukwuemeka Fred Akpata is the Managing Director of Anambra State ICT Agency. He said that we engage the interested telcos to consider the possibility to lease ducts in order to avoid multiple digging.
Nigeria’s broadband growth also hinges on developing “middle-mile” infrastructure–terrestrial fibre networks that connect subsea cable landing stations to end users inland. According to the World Bank, Nigeria only has 35,000 kilometres worth of national fibre and needs at least 95,000 additional kilometres. The Federal Ministry of Communications has launched a new Broadband Alliance to bridge the gap. However, its success depends on collaboration between federal, state and private actors.
Right-of-way issues mirror broader governance problems: decentralised responsibilities and inconsistent policies. Nigeria may not reach its 70% broadband penetration target by 2025 if these structural issues are not addressed. It is currently at just 45%.
