In 2024, Nigeria’s telecom industry faced one of its toughest financial years.
Operating costs surged 85%, reaching a record ₦5.85 trillion, according to the NCC.
This increase stemmed from high Right of Way (RoW) fees, inflation, currency volatility, and rising energy costs.
“Many licensees complained of high RoW fees and harsh economic conditions,” the NCC reported.
However, some states waived these fees in 2024, which eased pressure on operators.
RoW Challenges
RoW fees, required to lay fibre cables across public land, continue to burden operators.
Although the federal guideline sets ₦145 per metre, some states charge up to ₦9,477.
Ogun, Lagos, and Oyo demand the highest rates, which slows broadband expansion.
Fortunately, five additional states recently scrapped RoW fees, joining six others already providing free access.
Broadband Setbacks
Nigeria aimed for 70% broadband penetration by 2025, but coverage reached only 49.3% by September.
Consequently, high RoW fees, project delays, and hidden state charges stall infrastructure deployment.
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Telecom Costs And Revenue
Operators increased domestic capital expenditure to ₦2.9 trillion, up 159% from 2023, due to network upgrades and currency pressures.
Despite rising costs, operators grew revenue 44.7% to ₦7.67 trillion, boosted by data demand and subscriptions.
Furthermore, the NCC approved a 50% tariff increase, enabling operators like MTN to return to profitability.
Nigeria’s telecoms sector demonstrates resilience, yet nationwide broadband remains uncertain.
Resolving RoW disparities across all states remains essential to achieve the country’s digital ambitions.
