As of April 2025, 12 Nigerian states—including Zamfara, Katsina, Anambra, Kebbi, Nasarawa, Bauchi, Adamawa, Kaduna, Ekiti, Imo, Plateau and Niger—have officially waived Right of Way (RoW) fees to attract telecom infrastructure investments. While these states are willing to forgo vital revenue, they are discovering that waiving fees is only the beginning of a much larger and more complex equation.
Lagos remains Nigeria’s undisputed leader with 7,864.60 kilometres of laid fibre as of 2023, despite charging RoW fees ranging from ₦850 ($0.53) to ₦1,500 ($0.93) per metre. Edo (4,892.71km), the Federal Capital Territory (4,472.03km), and Ogun (4,189.18km) also lead the way, none of which have eliminated RoW fees. Niger and Kaduna, two of the 12 fee-waiver states, are a rare exception, ranking fifth with 3,681.66km and sixth with 3,028.88km respectively in fibre deployment.
This trend suggests that fee waivers alone aren’t the deciding factor for investment. States with strong infrastructure, investor-friendly policies, functional bureaucracies, and urban population density continue to attract more attention from telecom operators, regardless of RoW charges.
Wole Abu, Managing Director, Equinix West Africa, told that right-of-way is just one component in the cost breakdown of fibre deployment.
“You must still estimate customer demand, as return on investment depends on revenue generation,” Abu said. “If you deploy fibre to a community with insufficient demand or purchasing power, the business case will fail. Waiving right-of-way fees is a good first step to incentivise investment. I believe stimulating local demand is another crucial step in this process.”
States like Rivers, Akwa Ibom, and Imo have significant Gross Domestic Product figures but lag behind Lagos in both total and per capita terms. For instance, while Lagos boasts a GDP of ₦41.17 trillion ( $102 billion) with a GDP per capita of $6,614, Rivers State has a GDP of ₦7.96 trillion with a per capita GDP of $2,277, while Akwa Ibom’s GDP stands at ₦7.77 trillion with a per capita GDP of $2,962.
RoW refers to the legal permission telecom providers need to lay down critical infrastructure like fibre optic cables and towers across public or private land. Without this infrastructure, broadband connectivity and digital services simply can’t scale. The Nigerian Communications Commission (NCC) and the Federal Ministry of Communications have repeatedly emphasised RoW reform as a catalyst for digital inclusion. However, real-world outcomes suggest that the elimination of fees hasn’t been enough to spark the infrastructure boom envisioned.
The push to harmonise RoW charges across Nigeria began in 2013, when the National Executive Council (NEC) proposed a standard fee of ₦145 ($0.09) per linear metre. The goal was to streamline infrastructure deployment and reduce prohibitive costs. However, many states disregarded the directive, continuing to impose arbitrary and often excessive charges as a means of boosting internally generated revenue (IGR). It wasn’t until between 2020 and 2025, after a push by Isa Ali Pantami, then Minister of Communication and Digital Economy, that some states began aligning with federal recommendations by reducing or waiving RoW fees altogether.
The decision to eliminate fees varies by state, often influenced by local conditions. In Niger State, the government waived RoW fees for a few number of operators in September 2024 primarily due to a surge in fibre cuts caused by extensive road construction.
“Our governor is constructing 1,200 kilometres of roads in his first year in office. As a result, we’ve been experiencing numerous fibre cuts,” said Suleiman Isah, the state’s Commissioner for Communications Technology and Digital Economy. Between January and February 2025 alone, the NCC reported nearly 230 fibre cuts. That’s why the governor approved zero naira RoWas compensation.”
The second reason, Isah noted, was to encourage telecom investments by lowering the barriers to entry.
Despite the push for harmonisation, only 12 out of Nigeria’s 36 states have fully waived RoW fees. While the Federal Capital Territory (FCT) and Kwara State charge minimal fees—₦145 and ₦1, respectively—many others still present challenges. Telecom operators remain cautious, deterred by inconsistent regulations at the state and local levels. Even in states offering free RoW, the lack of uniformity, overlapping rules, and added levies create a complex and costly compliance landscape that limits large-scale investment.
Securing permits for telecom infrastructure deployment in Nigeria remains deeply hindered by bureaucratic red tape. Lengthy approval processes at state and local government levels frequently cause significant delays. Even after installations are completed, some infrastructure faces disruption due to harassment or arbitrary shutdowns stemming from conflicting enforcement by multiple regulatory bodies.
Adding to these challenges is the opaque implementation of RoW waivers. Many of these waivers are granted through executive orders rather than legislation, leading to inconsistent enforcement. Telecom operators often encounter hidden or informal “administrative fees” that drive up costs, despite the existence of official zero-fee policies. In some cases, local authorities impose levies that directly contradict their state’s waiver commitments, further undermining investor confidence and complicating deployment efforts.
Despite the widespread challenges facing telecom infrastructure deployment in Nigeria, some states are taking proactive steps to streamline the process and reduce barriers for network operators.
Niger State has introduced a more predictable framework: operators are required to pay a one-time, non-refundable application fee of ₦500,000 ($311.8). This fee covers both initial deployments and future expansions. Even if a company received its permit a decade ago, it does not need to pay again to expand its network.
“If you applied 10 years ago and you want to expand your network today, there is no need to pay another fee. You just need to inform the state you are expanding,” explained Isah.
Anambra State has adopted a different but equally facilitative approach. There, network operators can apply at no cost to the state’s physical planning agency. Applications are reviewed in collaboration with the Anambra State ICT Agency, which helps assess their technical and spatial feasibility.
“We avoid multiple digging. We engage the interested telco to consider the possibility of leasing ducts to avoid digging multiple times,” said Chukwuemeka Fred Akpata, Managing Director of the Anambra State ICT Agency.
Nigeria’s broadband growth also hinges on developing “middle-mile” infrastructure—terrestrial fibre networks that connect subsea cable landing stations to end users inland. Nigeria has only 35,000 kilometres of national fibre but needs at least 95,000 more, according to the World Bank. The Federal Ministry of Communications’ new Broadband Alliance aims to bridge this gap, but its success depends on collaboration across federal, state, and private actors.
The right-of-way dilemma mirrors broader governance issues: decentralised responsibilities, inconsistent policies, and fragmented implementation. Until these structural challenges are addressed, Nigeria risks falling short of its broadband penetration target of 70% by the end of 2025—it currently sits at just 45%.
