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Home Broadband

Ogun State Charges the Highest Right-of-Way Fee, But Still Lags Behind in Broadband Access

by Joan Aimuengheuwa
April 24, 2025
in Broadband
0
Ogun State Charges the Highest Right-of-Way Fee
Source: Getty Images

Source: Getty Images

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If irony had a price tag, Ogun State would be selling it at ₦9,477 per metre.

That’s the price it demands from telecom companies for laying fibre-optic cables. And in this theatre of the absurd, the state has managed to rank fourth in Nigeria for fibre coverage, with over 4,100 kilometres of cables beneath its soil—but at what cost? Ogun State charges the highest right-of-way fee in the country. For context, Gombe charges ₦500 per metre. That’s 18 times less.

We usually say Nigeria is a federation, but never has the fragmentation of policy been more visible than in the digital space. A document compiled by industry stakeholders in March 2024 reveals how states choose to treat broadband infrastructure. From Lagos to Yobe, it’s a roulette of fees, politics, and misplaced priorities.

Let’s get specific. Lagos, with its over 7,800km of fibre and reputation as the nation’s digital nucleus, charges ₦6,264 per metre. Osun, with 64km laid, somehow believes ₦6,850 is appropriate. Apparently, having little doesn’t mean charging less.

States like Sokoto, Jigawa, Kano, and Borno charge moderately, from ₦1,000 to ₦3,000 per metre. They seem to have realised what many others haven’t: infrastructure attracts investment, not the other way round.

In 2013, the National Economic Council proposed a standard right-of-way fee of ₦145 per metre to boost national fibre deployment. It sounded like progress. But like many Nigerian policies, it died in infancy—good on paper, ignored in practice. Today, most states charge whatever they please. Why? Because they can. There’s no law to stop them.

“The ₦0 right-of-way fee is based on executive order, but the ₦145 is law,” said Suleiman Isah, commissioner for Communications and Digital Economy in Niger State. “If the investment we attract in the next year or two outweighs what we made from fees, we’ll amend the law permanently.”

What Niger and a few other states are beginning to understand is that digital investment is a long game. Niger went beyond adopting the ₦145 benchmark, it took a step further—zero fee by executive order. And unlike others, they’ve committed to reviewing their law if it proves beneficial. That’s governance with foresight.

Meanwhile in Ogun…

Ogun State clearly didn’t get the memo pertaining the right-of-way fee. Or worse—it read it, laughed, and shredded it. The state charges more than nine times the NEC recommendation. One wonders if the goal is to build digital infrastructure or to bleed telecom operators dry. 

Ironically, despite laying thousands of kilometres of fibre, broadband reach is still abysmally uneven. Only 39% of Nigerians live within five kilometres of fibre networks, according to recent data. The rest? Digitally stranded.

The problem is bigger than just fees. Gbenga Adebayo, President of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said:

“The era of state governments charging Right-of-Way fees should be over. When states impose these fees, they lose out on the broader benefits of digital infrastructure. Instead of charging right-of-way fees, states should require telecom operators to deliver social impact projects.”

Some states, even after “waiving” fees, sneak in new levies—education taxes, highway fees, building permits. They give with one hand and snatch with the other. What Does Progress Look Like?

Progress isn’t only about kilometres of cable. It’s about who benefits, how far the access spreads, and whether the investment environment makes sense. Delta, Enugu, Ebonyi, and the FCT have embraced the ₦145 model. 

Other states like Anambra and Benue have gone fee-free altogether to stimulate investment beyond the major cities.

In Anambra, fibre isn’t just concentrated in Onitsha and Nnewi anymore. The goal, officials say, is statewide coverage.

“If telcos judged every investment strictly by profit, only commercial zones would get infrastructure,” said Chukwuemeka Fred Akpata, MD of Anambra ICT Agency. “By waiving right-of-way, we’re encouraging deployment in underserved areas.”

Now compare that to Ogun, where the right-of-way fee is mouth-opening. The State charges the highest and still hasn’t cracked equitable access. Maybe it’s time we stopped applauding infrastructure by kilometre count alone.

Numbers Don’t Lie, But They Do Mock

Nigeria’s broadband penetration stood at 45.61% as of January 2025. That’s promising—but it’s not enough. The GSM Association estimates that standardising right-of-way fees to ₦145 per metre across Nigeria could slash broadband rollout expenses by 15%. That’s not chump change. That’s money that could build infrastructure, hire engineers, reach the rural poor.

Instead, we’re stuck in a loop of states milking telecoms dry while claiming to support digital development. Some are waking up to the bigger picture. Others are doubling down on short-term revenue.

If we truly want to become a digital economy, we have to stop pretending that fees are policy. The path to progress isn’t paved with toll booths. It’s built on access, equity, and smart governance. And right now, only a few Nigerian states seem to understand that.

Until there’s a uniform, enforceable policy, Nigeria’s digital growth will remain a postcode lottery, fast in one state, frozen in the next.

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Tags: Association of Licensed Telecommunications Operators of Nigeria (ALTON)BroadbandBroadband InfrastructureBroadband Infrastructure Ogun StateChukwuemeka Fred AkpataDigital economy Nigeriafibre optic cablesGbenga AdebayoNational Economic CouncilNECogun stateOgun State Right-of-Way FeeRight-of-Way FeeRight-of-Way Fees in NigeriaTelecom Investment Challenges
Joan Aimuengheuwa

Joan Aimuengheuwa

Joan thrives at helping individuals and businesses scale via storytelling...

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