NCC seeks cost-based pricing to unlock fibre infrastructure investment

The Nigerian Communications Commission (NCC) is seeking a fair, transparent and sustainable pricing framework for fibre infrastructure sharing under the country’s Dig-Once policy, as it moves to reduce deployment costs and attract more investment into broadband infrastructure.

The initiative is aimed at developing a cost-based structure for accessing shared underground ducts built under the Dig-Once policy, which encourages the coordinated deployment and sharing of fibre infrastructure to minimise duplication of civil works.

Nadungu Gagare, permanent secretary at the Ministry of Communications, Innovation and Digital Economy, disclosed this at the second Stakeholders’ Consultative Forum on Developing a Pricing Mechanism and Cost-Based Structure for Sharing Ducts Built under the Dig-Once Policy, held in Abuja on Wednesday.

Gagare said the engagement was critical to ensuring that the policy delivers on its objectives of accelerating broadband expansion, reducing infrastructure deployment costs and promoting efficient use of national resources.

He said the forum would enable government, investors, infrastructure providers and other stakeholders to develop a pricing model that balances commercial interests with the broader public interest.

“The Dig-Once policy remains one of the government’s strategic interventions for accelerating fibre infrastructure development. It will reduce the cost of broadband expansion, prevent unnecessary road excavation and promote efficient use of national resources,” he said.

According to him, the success of the policy depends on a pricing framework that is transparent, commercially viable, equitable and capable of encouraging infrastructure sharing.

He noted that digital infrastructure remains central to Nigeria’s economic transformation agenda, providing the foundation for innovation, digital inclusion, job creation and improved competitiveness.

“Every kilometre of fibre deployed will help connect more communities, empower businesses and expand economic opportunities for Nigerians,” Gagare said.

He urged stakeholders to provide practical recommendations that would strengthen investor confidence while ensuring that public interest is protected.

Earlier, Ayuba Shuaibu, director of Policy, Competition and Economic Analysis at the NCC, said the effectiveness of the Dig-Once policy would depend on establishing a transparent and economically sustainable approach to pricing and access for shared duct infrastructure.

Shuaibu explained that the initiative was designed to reduce the cost and complexity of network deployment by promoting coordinated civil works and shared use of underground duct infrastructure.

However, he warned that without a well-defined pricing mechanism, the objectives of efficiency, fairness and investment protection may not be fully achieved.

“This study seeks to provide a structured and cost-based framework that ensures equitable access while supporting sustainable infrastructure development across the sector,” he said.

Shuaibu added that feedback from stakeholders would help refine the proposed framework to ensure it is practical, implementable and aligned with realities in Nigeria’s telecommunications market.

Meanwhile, Olugbenga Olabiyi, managing director of Dimension Data Ltd, said despite the significant growth recorded in Nigeria’s telecommunications sector, broadband deployment continues to face structural and economic challenges.

He identified the high cost of civil engineering works required for fibre deployment as one of the major barriers affecting broadband expansion.

“The construction of ducts, sub-ducts, conduits, manholes, poles and associated infrastructure typically constitutes the largest portion of broadband deployment expenditure,” Olabiyi said.

He noted that passive infrastructure remains the most expensive and difficult component of broadband deployment across both developed and emerging markets.

According to him, this has increased global efforts by policymakers and regulators to promote infrastructure sharing as a way of reducing costs, improving efficiency, encouraging investment and accelerating broadband expansion.