As of December 2021, reports indicated that 114 communities in Nigeria lacked adequate internet connectivity, with 81% of Nigerians facing challenges in accessing meaningful internet services, as per the Alliance for Affordable Internet (A4AI). The World Bank defines meaningful connectivity as not just having access to the internet but also utilizing it effectively for various purposes like education, healthcare, and government services.
Without the deployment of telecoms infrastructure, Nigeria risks missing its target of achieving 70% internet penetration by 2025. To address this digital divide, the Nigerian Communications Commission (NCC) introduced the Infrastructure Company (InfraCo) model. This model, developed in consultation with industry experts, aims to bolster optic fibre backbone infrastructure development across Nigeria.
The InfraCo initiative is a pivotal component of the National Broadband Plan 2020-2025, which seeks to achieve various milestones including 60% fibre to towers connection, a minimum of 120,000km fibre infrastructure, and fibre coverage along federal and state roads, among others.
Currently, seven companies have been licensed as InfraCos to deploy optic fibre across Nigeria’s six geopolitical zones. These companies are mandated to establish high-capacity wholesale networks and adhere to stringent performance standards. The goal is to allow retail operators to leverage shared infrastructure, expand their coverage, and reduce the cost of broadband services.
Despite the potential benefits of the InfraCo model, several challenges have hindered its effectiveness. These challenges include difficulties with securing Right of Way (RoW), funding constraints, poor Return on Investment (ROI) in rural areas, and inadequate government support. Additionally, InfraCos face challenges in accessing foreign exchange (forex) to purchase infrastructure equipment, as most of these components are imported.
The failure to address these challenges has resulted in a decline in broadband penetration, as evidenced by recent statistics from the NCC. Broadband penetration decreased from 48.49% in February 2023 to 41.87% in December 2023.
To address these issues, stakeholders emphasize the need for government intervention. Key recommendations include addressing forex challenges, streamlining regulations, reducing multiple taxation, and designating telecom infrastructure as Critical National Infrastructure (CNI). Additionally, there is a call for increased advocacy and sensitization to encourage state governments to adopt standardized RoW charges.
In response to these challenges, the NCC has pledged to work closely with state governments to address regulatory bottlenecks and advocate for telecom infrastructure development. However, stakeholders emphasize the need for sustained government support to ensure the successful deployment of infrastructure and the deepening of broadband penetration in Nigeria.
