Abuja, November 21, 2025 – Nigeria’s telecommunications industry has issued a strong caution to the National Assembly that the National Digital Economy and E-Governance Bill 2025, in its current form, could severely undermine investor confidence and slow the country’s broadband expansion, primarily due to provisions that fail to address the long-standing problem of exorbitant and unharmonised Right of Way (RoW) charges imposed by state governments.
Speaking at a joint public hearing of the Senate and House of Representatives Committees on Digital and Creative Economy and Information Communication Technology in Abuja on Monday, the Association of Licensed Telecom Operators of Nigeria (ALTON) urged lawmakers to amend the bill to explicitly tackle the RoW fee crisis.
ALTON Chairman, Engr. Gbenga Adebayo, told the lawmakers:
“We are concerned that the bill, as presently drafted, does not sufficiently address the issue of Right of Way charges which remain a major impediment to infrastructure deployment. The absence of a clear, uniform, and investor-friendly RoW regime will continue to deter both existing operators and potential new investors.”
Adebayo highlighted that despite a 2013 federal guideline setting RoW charges at a maximum of N145 per linear metre for fibre optic deployment, many states still demand fees ranging from N1,500 to as high as N9,477 per metre. Some states impose additional annual recurring charges, multiple taxation, and bureaucratic delays that inflate project costs by up to 40 per cent in certain corridors.
He further warned that vesting sweeping regulatory powers over digital infrastructure in the National Information Technology Development Agency (NITDA) while leaving the Nigerian Communications Commission (NCC) with overlapping or unclear mandates could create jurisdictional conflicts that further erode investor trust.
“The bill concentrates too much power in one agency and risks creating regulatory uncertainty. Investors need clarity, predictability, and a single, competent regulator for telecommunications infrastructure,” Adebayo stressed.
The operators proposed that the legislation should:
Reaffirm the NCC as the sole regulator for telecommunications networks and infrastructure deployment
Mandate zero or nominal RoW charges nationwide in line with global best practice
Prohibit states from imposing recurring fees on linear infrastructure
Establish strict timelines for granting permits (not exceeding 14 days)
As of November 2025, only 12 states — Zamfara, Katsina, Anambra, Kebbi, Nasarawa, Bauchi, Adamawa, Kaduna, Ekiti, Imo, Plateau, and Niger — have fully waived or significantly reduced RoW charges. Niger State recently introduced a one-time permit fee of N500,000 for initial deployment and subsequent expansions to encourage rural coverage.
Industry data presented at the hearing showed that between January and August 2025 alone, operators recorded 19,384 incidents of fibre cuts, over 3,241 cases of equipment theft or vandalism, and more than 19,000 instances where access to sites was denied by state or local authorities — many linked to disputes over RoW payments.
With Nigeria’s broadband penetration stuck at approximately 45.6 per cent against a 2025 target of 70 per cent, and only 39 per cent of the population living within five kilometres of fibre infrastructure, operators warned that failure to resolve the RoW impasse will continue to leave vast amounts of international submarine cable capacity stranded at the coast, unable to reach inland communities.
The public hearing continues across all 36 states and the Federal Capital Territory, with the National Assembly targeting passage of the bill before the end of the second quarter of 2026.
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Telecom Operators Warn Digital Economy Bill Risks Driving Away Investors Over Right of Way Fees
