Lagos begins phase 2 of 3,300km metro fibre project

Nigeria has issued about 1,154 telecom licences to operators within the last two decades since the telephony revolution began in the country. Specifically, this has been aided by the Nigerian Communications Act (NCA) 2003. The Act has, however, come under review to accommodate the latest developments in the ICT sector, including emerging technologies, cyber security, and local content.

The telecoms sector, as of three years ago is estimated to be worth $76 billion and has been fueled by the various services offered by licensees since the revolution started in the country.

In a document, titled: ‘The Nigerian Communications Act (NCA) 2003: Impact Analysis of the Communications Sector,’ these licenses enabled the sector’s 14.4 per cent contribution to the country’s Gross Domestic Product (GDP) as of last quarter of 2024, and has helped in bringing telephone services to over 160 million active subscribers as of quarter one of 2025.

The licenses have been issued by the Nigerian Communications Commission (NCC), and have earned the Federal Government some amount of money, including $863.9 million paid by MTN, Mafab Communications and Airtel for 5G licences between 2022 and 2023.

Checks by The Guardian showed that these licences include, Individual Licence, Class licence, Unified Access Service licence, Value Added Service licence categories.

Specifically, an individual licence is one specific to the service being provided, with terms, conditions, obligations, scope, and limitations tailored accordingly. The process for obtaining an individual licence can vary and may include auctions, tenders, fixed prices, or standard administrative procedures.

Examples of services that may require an individual licence include Digital Mobile Services (GSM). This is for mobile network operators providing voice and data services. There is also the Fixed Telephony (Wired or Wireless) licence for operators providing fixed-line voice and data services and international Gateway Services, for companies operating the infrastructure connecting Nigeria’s telecom networks with international networks.

Others in this category include National Long Distance Operator; Metropolitan (Fibre) Cable Network; Local Exchange Operator; Internet Service Provider (ISP), among others.

Further, a class licence is a general authorisation where the terms and conditions are common to all licence holders within that class. It typically requires registration with the NCC for applicants to commence operations.

Examples of services that usually fall under class licences include Internet Exchange Point (IXP), Public Payphone Services, for businesses providing public telephone facilities; Cybercafés and Mobile Virtual Network Operator (MVNO.

The UAS is an individual licence that allows the licensee to provide a bundle of telecommunication services under a single licence. For instance, a UAS license can permit an operator to offer mobile and fixed telephony services, national long-distance, and gateway services. Existing licensees with separate licenses may be eligible to convert to a UAS license if they meet certain criteria, such as having an operational network infrastructure and a significant customer base.

MEANWHILE, the second phase of Lagos State’s 3,300km metro fibre project has started in earnest. Commissioner for Innovation, Science and Technology, Olatunbosun Alake, announced the development during the ministry’s yearly Ministerial Press Briefing at the weekend in Lagos.

Alake informed that the new phase extends the initial 2,700km already deployed across the state, and is designed to further strengthen Internet connectivity and digital access in underserved areas.

“Between 2023 and 2025, the metro fibre initiative led to over one million new Internet subscribers. It also enabled telecom operators to roll out infrastructure in parts of Lagos that had long been neglected,” he said.