Why Lower Fibre Fees Alone Won't Close Nigeria's Connectivity Gap

Despite widespread right-of-way fee reductions across Nigeria, deployment data shows fibre investment persists in high-fee states and stalls in low-fee regions, revealing that cost cuts alone won't bridge the country's connectivity gap.

ValueDrive Post Editor Oct 19, 2026 2 min read

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Introduction

Nigeria's states adopt widely varying right-of-way fees for fibre deployment, yet deployment data doesn't neatly align with cost differences. Some states with zero fees have minimal fibre, while high-fee states host substantial networks. The disconnect raises questions about what truly drives infrastructure investment.

What Happened

Analysis of the Nigerian Communications Commission's July 2026 Ease of Doing Business portal reveals stark disparities. Ogun charges ₦6,600 per metre but has 4,246km of fibre; Kano charges ₦2,754 per metre with 4,616km; Rivers charges ₦2,256 per metre with 4,616km. Meanwhile, Ebonyi at the ₦145 benchmark manages only 586km, and Bayelsa at ₦850 has 656km. States like Kaduna and Anambra with zero fees boast 4,339km and 2,547km respectively, showing fee waivers don't automatically translate to more deployment.

Why This Matters

Fibre length doesn't equal capital expenditure, as route conditions, excavation, and equipment costs vary significantly. High fees can tie up capital and create budget uncertainty, especially when rates differ between NCC portals and state agencies like Lagos's LASIMRA. Without clear, consistent fee structures and transparent data linking policy changes to new deployment, operators struggle to assess commercial viability. The result is that fee reductions may lower costs in already-active markets but won't necessarily spur investment in underserved areas.

Key Takeaways

Fee levels alone don't determine fibre deployment volume
States with zero fees still show wide deployment gaps
Existing networks often predate policy changes
Transparent data on new fibre, approval times, and capital spend is needed to measure policy impact
Commercial demand, transport corridors, and existing infrastructure remain primary investment drivers

Conclusion

Lower right-of-way fees are a useful policy tool but not a guaranteed catalyst for broader connectivity. States that track new fibre deployment, approval timelines, and capital expenditure alongside fee changes will better understand what drives investment. Until then, fee reductions remain an input - not proof that infrastructure growth has increased. True progress requires aligning policy with measurable outcomes, especially in regions where demand exists but infrastructure remains out of reach.