…must strengthen infrastructure laws to attract more investment

Nigeria must harmonise and reduce right-of-way charges imposed by states and strengthen laws protecting telecommunications infrastructure to lower the cost of digital investment and accelerate network expansion, Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), has said.

Adebayo made the call at a panel session titled “Innovation, Investment and the Next Decade of Partnerships” at the 32nd Nigerian Economic Summit in Abuja on Tuesday, where business leaders and policymakers discussed the conditions required to attract long-term investment into Nigeria.

He said inconsistent charges for access to land and rights of way, alongside high land rents and the risk of damage to network infrastructure, remained concerns for telecommunications operators seeking to expand services and improve connectivity.

According to him, the government needs to create a more consistent regulatory environment across states while strengthening the legal framework for protecting critical telecommunications and digital infrastructure.

“I don’t see why states should still charge for right of way. And we are starting an advocacy on why we think right of way should be provided free of charge.

“We require stronger legislation to solidify the possession of our assets. More than that also, the consequence management also has to be better,” he said

The calls come as Nigeria seeks to attract more investment into its digital economy, where reliable telecommunications networks are essential to financial services, commerce, education and other technology-enabled activities.

Adebayo advocated free right-of-way access across all states, arguing that the cost of securing access for fibre-optic cables and other network infrastructure should not become an additional barrier to investment.

For operators, differing charges and requirements across states can complicate network deployment, increase project costs and make expansion more difficult, particularly where infrastructure must cross multiple jurisdictions.

A uniform approach, he argued, would help create a more predictable environment for telecommunications companies planning infrastructure projects and seeking to extend coverage to underserved communities.

Adebayo said infrastructure damage had declined since telecommunications assets were designated as critical national infrastructure, while enforcement and consequence management had improved. However, he argued that existing laws and penalties needed to be strengthened to provide more effective protection for operators’ investments.

He called for legislation that would make the protection of telecommunications infrastructure more effective, noting that damage to networks can disrupt essential services and increase the cost of maintaining and expanding connectivity.

“We think that there’s a need for us to look at that and see how best we can provide commensurate consequence for actions that are impactful on our services,” he added

Also speaking, Shuaibu Afolabi, chairman of the Senate Committee on ICT and Cybersecurity, said the 2025 amendment had designated critical national information infrastructure, including telecommunications networks, banking systems and the National Identity Number database.

He said the Office of the Attorney-General of the Federation was coordinating relevant stakeholders to improve understanding and enforcement of laws governing information and communications technology and cybercrime.

Afolabi said the Senate would consider relevant legislation and welcomed contributions from industry stakeholders, signalling the need for closer cooperation between lawmakers, regulators and telecommunications operators in addressing infrastructure protection.

The issue of right-of-way charges has remained a challenge for operators despite efforts to harmonise fees across states. The Federal Government’s recommended rate is N145 per linear metre, but some states continue to impose higher charges or additional application and administrative fees.

These additional costs can undermine the benefits of lower headline charges and make fibre deployment more expensive, particularly for projects that cross multiple states.

The implications extend beyond telecom operators. Fibre-optic networks provide the backbone for broadband services, digital payments, cloud computing and other services increasingly used by businesses and households. Higher deployment costs can slow network expansion and limit access to reliable internet services, especially in underserved communities.

For investors, the concerns raised at the summit point to a broader issue: the need for a regulatory environment that combines clear rules with consistent implementation across different levels of government.

Reducing right-of-way costs, simplifying approval processes and enforcing laws protecting critical infrastructure could help lower investment risks and improve the commercial case for expanding digital networks.