Telecom Operators Lament Multiple Levies as States Flout N145 RoW Policy

Telecommunications operators in Nigeria are facing fresh financial pressure as several state governments continue to impose additional charges on fibre infrastructure deployment despite the Federal Government’s N145 per linear metre Right of Way (RoW) directive.

The development, according to industry stakeholders, is threatening the country’s broadband expansion drive and could further delay the deployment of fibre and 5G infrastructure, particularly in underserved communities.

Data from the Nigerian Communications Commission (NCC) on ease of doing business showed wide variations in RoW and application charges across states.

The National Economic Council (NEC) approved the N145 per linear metre uniform RoW fee in 2020 to reduce deployment costs and encourage investment in broadband infrastructure.

However, several states have retained additional application fees, while others continue to charge RoW rates far above the approved benchmark.

Adamawa, for example, has abolished its RoW fee but charges operators N100,000 for each application.

Cross River, which adopted the N145 per linear metre rate, imposes an additional N250,000 application fee.

Ekiti charges N145 per linear metre but has an application fee of N700,000, while Taraba charges N350,000 per application alongside the standard RoW fee.

Oyo imposes N50,000 in application charges, while Yobe charges N25,000. Gombe, despite charging the approved N145 per linear metre, also imposes a N10,000 application fee.

Other states have continued to charge substantially higher RoW fees.

Kano charges N2,754 per linear metre, Delta N2,706, Rivers N2,256, Ogun N6,600, Osun N1,500 and Akwa Ibom N2,000.

The Association of Licensed Telecom Operators of Nigeria (ALTON) said the additional charges imposed by some states effectively defeat the purpose of the RoW harmonisation policy.

ALTON Chairman, Gbenga Adebayo, said some states that claim to have reduced or eliminated RoW charges had introduced other levies that operators must pay before deploying infrastructure.

He identified developmental, educational, environmental and effluent discharge levies, as well as capital deployment and application fees, among the additional charges faced by operators.

Adebayo said such charges make the claim of zero RoW fees meaningless.

He further warned that excessive deployment costs and difficulties encountered by operators in some states could make those locations commercially unattractive for telecommunications investment.

A former NITEL staff member, Kehinde Aluko, said the situation was already affecting investment decisions, with some fibre deployment projects being delayed or abandoned because of the high cost of accessing rights of way.

He warned that the consequences could be felt by consumers through higher data costs and slower expansion of broadband services.

According to Aluko, expensive deployment charges could also slow the rollout of 5G and fibre broadband outside major urban centres, leaving many communities with inadequate connectivity.

He said the situation could undermine access to digital services in critical sectors, including education, healthcare and e-commerce.

The development comes as the Federal Government continues to pursue wider broadband coverage and improved digital connectivity across the country.

Industry stakeholders are therefore urging stronger enforcement of the N145 RoW policy and closer cooperation between federal and state authorities to eliminate multiple charges that could discourage investment in telecommunications infrastructure.