Partner with govt in $2bn broadband project, telcos urged

Nigeria’s $2bn fibre-optic expansion project, aimed at boosting internet connectivity across the nation, has attracted calls for telecommunications companies to invest and participate in the initiative.

The project, which has gained support from the World Bank, seeks to extend the country’s fibre network by 90,000 kilometres from its current 35,000 km, positioning Nigeria as the third-longest terrestrial fibre optic backbone in Africa, behind Egypt and South Africa.

While a special purpose vehicle for the project has been established, the Nigerian government will need at least 15 months to raise $2bn for the project.

The Director at Adaba Consult, Ejikeme Onyeaso, underlined the importance of telcos’ involvement in the fibre project.

The telecom consultant told The PUNCH that telcos’ partnership with the federal government will reduce capital expenditures by leveraging existing infrastructure.

He said, “We need to explore how the private sector, particularly the telecom operators, can collaborate with the federal government on leveraging existing infrastructure.

“Such partnerships could significantly reduce capital expenditure. For instance, in areas where telcos require infrastructure deployment, they could utilise existing government infrastructure through co-location, leasing, or similar arrangements.

He said another area of potential collaboration is addressing the foreign exchange challenges faced by the telecom sector.

“As we know, telecommunications heavily rely on forex, and engaging the federal government on measures to stabilise forex rates could be beneficial,” he reasoned.

Meanwhile, the expansion is forecast to increase economic growth by up to 1.5 per cent over the next four years, according to industry projections.

It is expected to significantly enhance internet access for over 200,000 institutions, including schools, businesses, and communities, particularly those currently underserved.

Onyeaso added that telcos could benefit from reduced costs by sharing infrastructure with government agencies and participating in co-location or leasing agreements.

He noted that this collaboration would not only minimise investment burdens but also increase efficiency, thereby helping telcos remain competitive in a rapidly growing market.

Telcos have been constrained and facing significant challenges due to high capital expenditure and a liquidity squeeze. This has led to calls for them to leverage infrastructure sharing.

In December, the Vice President of Marketing and Partnerships at Tizeti—an internet service provider, Temitope Osunrinde, said embracing infrastructure sharing would minimise rising costs and improve connectivity across the continent.

Osunrinde proposed that instead of each operator purchasing equipment individually, they should pool resources by consolidating demand.

This collaborative approach, he argued, would significantly reduce costs, stimulate local manufacturing, and foster partnerships with pan-African companies like Dangote and Coca-Cola, which could help expand service availability.

“With aggregated demand, we can reduce the cost of purchasing equipment, lower the financial burden on telecom operators, and make essential services more affordable,” he said.