States advocate transparent fibre duct pricing to support 90,000km rollout

The Governments of Kogi and Cross River States have advocated a transparent, cost-based pricing framework for shared fibre infrastructure, saying it is critical to accelerating broadband deployment and attracting private investment into Nigeria’s digital infrastructure.

The states made the call at a stakeholders’ forum organised by the Nigerian Communications Commission (NCC) in Abuja to develop a sustainable pricing model for fibre ducts deployed under the Federal Government’s Dig-Once policy.

The policy is designed to reduce repeated road excavations, minimise damage to fibre cables, lower the cost of broadband deployment and improve service quality through the sharing of fibre duct infrastructure.

Helen Adeniyi, Kogi State Commissioner for Innovation, Science and Technology, said the initiative would reduce network disruptions, cut infrastructure costs and improve broadband reliability.

She urged the Federal Government and the NCC to work closely with state governments in designing revenue models that encourage, rather than discourage, broadband investment.

“We need a pricing framework that creates incentives for investment while ensuring infrastructure is accessible to operators on fair and transparent terms,” she said.

Justin Beshel, Cross River State Commissioner for Science and Technology, said the State had demonstrated the viability of the Dig-Once approach through its partnership with the NCC between 2012 and 2015, which led to the deployment of about 120 kilometres of fibre-optic backbone infrastructure in Calabar.

According to Beshel, the project showed that coordinated infrastructure planning can reduce deployment costs while expanding broadband access.

WTES Projects Ltd., the consulting firm leading the pricing study, said the proposed framework would establish a common cost structure with floor and ceiling prices to provide pricing certainty while allowing room for commercial negotiations between infrastructure owners and operators.

Chidi Ajuzie, chief operating officer of WTES Projects, said duct-sharing charges currently range between N2,000 and N7,000, depending on the infrastructure deployed and the services provided.

He said the proposed model is designed to support fibre projects ranging from 20 kilometres to 1,000 kilometres and align with the Federal Government’s plan to deploy 90,000 kilometres of fibre-optic infrastructure nationwide.

Industry stakeholders expect the framework to reduce infrastructure duplication, encourage greater sharing of fibre assets, improve investment certainty and support Nigeria’s broadband expansion targets as the country seeks to deepen digital connectivity and grow its digital economy.