The Nigerian Federal Government is embarking on a transformative digital infrastructure project aimed at deploying 90,000 kilometers of fiber-optic cable across the country. This ambitious initiative, set to begin within the next six months, is designed to significantly enhance Nigeria’s national connectivity backbone by increasing the current network from 35,000 kilometers to a robust 125,000 kilometers.
The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, announced the Federal Government’s plan, highlighting the progress made under his leadership over the past year.
The deployment of the fiber-optic network is expected to start between now and February 2025.
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Through the project, the government aims to improve internet connectivity by expanding the country’s digital infrastructure, ensuring more Nigerians have access to reliable and affordable internet services, and ultimately stimulating economic growth.
However, this expansion represents more than a move to improve telecom services. Many believe it represents a strategic move to make the Nigerian market more competitive especially as international tech giants like SpaceX’s Starlink expand their presence in the country.
The global tech company SpaceX, through its satellite internet service, Starlink, is rapidly expanding its footprint in Nigeria by establishing ground stations across the country. Starlink’s entry into the Nigerian market has introduced a new level of competition, particularly for local internet service providers (ISPs), who now face the challenge of competing with Starlink’s high-speed, low-latency internet offerings.
Funding and Partnership Model
To finance this large-scale project, the Nigerian government is working with international funding partners, including the World Bank. Dr. Tijani revealed that the Federal Executive Council (FEC) has approved a Special Purpose Vehicle (SPV) to manage the project’s delivery. This SPV, modeled after successful Public-Private Partnerships (PPPs) like the Nigeria Inter-Bank Settlement System (NIBSS) and Nigeria LNG Limited (NLNG), is expected to help in securing the necessary funds and ensuring the effective deployment of the fiber-optic network.
“The Federal Executive Council (FEC) FEC has approved the SPV that will deliver on this project, and our development funding partners are currently finalizing the SPV structure to ensure the aggregation of funding required for the effective deployment of the fiber-optic network.
“Our target is for this deployment to start within the next six months,” Dr. Tijani stated, noting that the project is critical for creating a more vibrant digital ecosystem.
“By connecting more communities across the country, we will ensure that many more of our citizens can connect to the benefits of the digital economy,” he added.
Impact on the Nigerian Internet Market
The deployment of the fiber-optic network is particularly necessary for the survival of local ISPs, which have served as Nigeria’s economy’s backbone, especially in the face of increasing pressure from Starlink’s aggressive expansion.
Starlink’s satellite internet service, known for its high speed and global reach, has already started making inroads into underserved and remote areas of Nigeria. While Starlink’s presence is a boon for consumers, offering them more choices and better service, it presents a formidable challenge for local ISPs who rely on ground-based infrastructure.
Local ISPs need large-scale fiber-optic infrastructure to remain competitive in this new landscape. Without such infrastructure, they may struggle to offer the same level of service as Starlink, potentially leading to a loss of market share. Thus, many believe that the government’s fiber-optic deployment plan, therefore, is not just about improving national connectivity but also about empowering local ISPs to compete effectively against global giants.
Economic and Social Benefits
The project is also expected to have far-reaching economic and social benefits. The government aims to raise internet penetration to over 70% and reduce the cost of internet access by more than 60% by increasing the country’s fiber-optic coverage. This would bring more than half of the 33 million Nigerians currently without internet access into the digital economy, fostering greater inclusion and participation.
Moreover, the project is projected to contribute up to 1.5% growth in GDP per capita, potentially raising Nigeria’s GDP from $472.6 billion in 2022 to approximately $502 billion within the next four years. By connecting more communities, especially in rural and underserved areas, the project will unlock new economic opportunities, drive innovation, and improve the quality of life for millions of Nigerians.
The Challenge of Right of Way
Despite the potential benefits, the project faces significant challenges, particularly concerning the issue of Right of Way (RoW). RoW regulations, which differ across Nigeria’s 36 states, have historically slowed down infrastructure development due to high costs and bureaucratic delays imposed by state governments.
Telecom industry experts have said that for the fiber-optic deployment to succeed, the Federal Government will need to secure the cooperation of state governments and streamline RoW processes. They warned that without addressing these challenges, the project could face significant delays, undermining its potential impact.