High right-of-way charges are making telecommunications infrastructure more expensive and slowing network expansion into underserved communities, the Association of Licensed Telecommunications Operators of Nigeria has warned.
ALTON Chairman, Gbenga Adebayo, called on state governments to abolish the charges, particularly in rural areas where operators may struggle to recover the cost of deploying fibre-optic cables.
Speaking on Tuesday on the sidelines of the 2026 Nigerian Economic Summit in Abuja, Adebayo said right-of-way fees accounted for between 50 and 60 per cent of the cost of deploying a kilometre of fibre in some states.
He argued that removing the charges would encourage operators to extend connectivity to communities with poor or no network coverage, helping to bridge Nigeria’s digital divide.
Adebayo also urged the government to introduce incentives for telecommunications companies investing in locations where expected revenue might not justify the cost of infrastructure.
He said the Universal Service Provision Fund, established to support connectivity in underserved areas, could be deployed more effectively to close coverage gaps.
The ALTON chairman rejected suggestions that operators were unwilling to invest in rural communities, arguing that appropriate incentives and targeted government support would make such projects more viable.
He added that Nigeria needed increased investment in fibre-optic cables, telecommunications sites and network capacity to improve service quality and support emerging technologies, including artificial intelligence.
At the summit, the Chairman of the Senate Committee on ICT and Cybersecurity, Shuaib Salisu, said the National Digital Economy and E-Government Bill had reached its third reading, expressing optimism that it would be passed before the end of 2026.
He said lawmakers were also working on cybersecurity reforms and reviewing the Data Protection Act.
Salisu added that the Federal Government’s planned 90,000-kilometre fibre-optic network would help extend connectivity to underserved communities, while the Three Million Technical Talent programme would strengthen the country’s digital workforce.
He urged businesses to engage lawmakers early in the legislative process to ensure that proposed laws reflected industry needs and investment realities.
Also speaking, the United States Mission’s Chargé d’Affaires in Abuja, Jimmy Mauldin, called for stronger investment partnerships between Nigeria and the US, identifying digital infrastructure, energy, manufacturing, agriculture and financial services as areas with opportunities for cooperation.
Mauldin said predictable policies, respect for contracts, reliable electricity, efficient trade procedures and improved security were essential to attracting and retaining investors.
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