The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has urged state governments to abolish right-of-way charges for telecommunications infrastructure to encourage network expansion into underserved communities.

The association said the charges significantly increased the cost of deploying fibre-optic cables, discouraging investment in areas where operators might struggle to recover their costs.

Its Chairman, Engr. Gbenga Adebayo, made the call on Tuesday while speaking on the sidelines of a plenary session sponsored by IHS Nigeria at the 2026 Nigerian Economic Summit in Abuja.

 

Right of way refers to the permission granted to telecommunications operators to access and use public or private land, roads and other designated spaces to install fibre-optic cables and other network infrastructure.

 

Adebayo said the charges accounted for between 50 and 60 per cent of the cost of deploying a kilometre of fibre-optic cable in some states.

He called for legislation to make right of way for telecommunications infrastructure free, particularly in rural communities and locations with limited commercial prospects.

“Today, the cost of right-of-way amounts to a significant part of the cost of fibre deployment. For every one kilometre of fibre that you deploy, in some of the states, the cost of right of way can be as high as 50 to 60 per cent of the cost of deploying the entire infrastructure,” he said.

Adebayo argued that removing the charges would encourage operators to extend their networks to communities with poor or no connectivity, helping to bridge the country’s digital divide.

He said the government could also introduce incentives for operators willing to invest in areas where expected revenue might not justify the cost of infrastructure deployment.

The ALTON chairman urged stakeholders to identify communities with connectivity gaps and deploy available government intervention funds to support expansion.

“There are also intervention funds. We have the Universal Service Provision Fund, which is designed for special intervention in those areas that are lacking coverage,” Adebayo said.

He rejected the perception that operators were unwilling to invest in rural communities, arguing that appropriate incentives and targeted government support could make such investments more viable.

Beyond expanding coverage, Adebayo said Nigeria needed greater investment in fibre-optic cables, telecommunications sites and network capacity to improve service quality and prepare for emerging technologies.

He noted that artificial intelligence (AI) depended not only on software and computing power but also on the underlying telecommunications infrastructure that supports connectivity and data transmission.

 

He described telecommunications networks as critical to the digital economy and called for more investors to support the sector’s infrastructure needs.

 

Speaking earlier at the summit, Chairman of the Senate Committee on ICT and Cybersecurity, Shuaib Salisu, disclosed that the National Digital Economy and E-Government Bill had reached its third reading.

 

Salisu expressed optimism that the National Assembly would pass the bill before the end of 2026. He added that lawmakers were working on cybersecurity reforms and reviewing the Data Protection Act.

 

He said the Federal Government’s planned 90,000-kilometre fibre-optic network would help extend connectivity to underserved communities, while the Three Million Technical Talent (3MTT) programme would strengthen Nigeria’s digital workforce.

The senator urged businesses to engage lawmakers early in the legislative process to ensure that proposed laws reflected industry realities and investment requirements.

 

The remarks formed part of Plenary IV, themed “Innovation, Investment and the Next Decade of Partnership”, at the summit organised by the Nigerian Economic Summit Group (NESG).

 

Also speaking, Chargé d’Affaires of the United States Mission in Abuja, Jimmy Mauldin, called for stronger investment partnerships between Nigeria and the United States, saying cooperation should go beyond trade to create jobs, transfer technology and strengthen local businesses.

 

Mauldin identified digital infrastructure, energy, manufacturing, agriculture, critical minerals and financial services as areas with opportunities for deeper collaboration.

 

He said Nigeria’s large young population, technology sector and position in West African commerce made it attractive to investors, but stressed that predictable policies, respect for contracts, efficient trade procedures and improved security were essential to sustaining investment.

 

“Capital is mobile. And it’s also important to remember that capital is very selective,” he said.

 

He added that reliable electricity and secure communities were necessary for businesses to establish factories, deploy fibre networks and operate supply chains.

 

The summit brought together government officials, business leaders, policymakers and development partners to discuss investment, infrastructure and strategies for Nigeria’s economic development.