Bosun Tijani, Nigeria’s minister of Communications, Innovation and Digital Economy, stood before the crowd and took them back to a vision first shared in August 2025, a dream to weave 90,000 kilometres of fibre-optic cable across the length and breadth of the nation.

It was an audacious plan, bold in scale and rooted in a simple belief: that no corner of Nigeria should be cut off from the promise of the internet.

“When I talk about the fact that we will connect 90,000 kilometres of fibre, it’s not just a dream,” he said, his voice steady with conviction. “I’ve actually done 60 percent of that work.”

That single sentence carried the weight of countless hours of planning, laying kilometres of dark fibre, and overcoming logistical hurdles in terrains from cities to villages. It was a moment of pride, but also a reminder of work still ahead.

Tijani didn’t just want to celebrate progress; he wanted to paint a picture of what that progress would mean for everyday Nigerians. For students in remote towns, reliable broadband could unlock global classrooms.

“The money for that project has been secured. So if I talk to you today, I can boldly say that I’ve done the bulk of the work for whoever is going to become the minister.”

For entrepreneurs, it could open doors to digital markets once thought unreachable. And for the economy, it was a foundational pillar in the administration’s vision of a $1 trillion economy anchored in shared prosperity.

Tijani said digital infrastructure drive is part of President Bola Tinubu’s vision to build a $1 trillion economy anchored on shared prosperity.

But the infrastructure story didn’t stop at cables buried beneath the soil.

Reaching for the Skies

Amid the fibre rollout updates, Tijani turned the conversation skywards.

Nigeria, already unique in West Africa for having a known communication satellite, has now received approval to procure two new communication satellites.

In the minister’s words, this isn’t just about having satellites in orbit. It’s about ensuring that every remote community, every rural school, and every underserved town can be reached with connectivity that doesn’t depend solely on terrestrial lines.

These space assets are intended to stretch Nigeria’s digital reach further than ever before, across the nation’s vast landmass and potentially into neighbouring countries.

Picture it: fibre cables stitching cities and towns into the digital economy on the ground, while satellites overhead bridge the gaps that fibre cannot reach, all part of a grand plan to connect Nigeria and empower its people.

Trust as a Cornerstone

Yet, amid the pride in laying cables and launching satellites, Tijani sounded a note of caution. Connectivity without trust is like a road without direction.

As Nigeria pushes forward with its digital transformation, he emphasized that data protection and privacy must form the foundation of public confidence in these technologies.

That message, amplified by the Nigerian Data Protection Commission’s growing role, made clear that the government sees trust not as an afterthought but as a companion to progress.

A Journey Continues

At the close of the event, the hall buzzed with excitement, not just for the kilometres of fibre laid or the satellites soon to be procured, but for a future where digital tools serve every Nigerian, equally and securely.

The journey toward a fully connected Nigeria is far from over. But as the cables push outward and satellites prepare for launch, the story of Nigeria’s digital transformation is beginning to be written in earnest, one kilometre, one connection, and one heart at a time.

From the periphery, it could be said the capital inflow means the sector would have a continued flourishing end, but foresight tells us there is a need for certain policy shifts and in-depth management, to sustain the tempo of FDIs.

Opportunities

The increase in FDIs positively impacts Nigeria’s digital transformation agenda, with the government’s target of connecting at least 70% of the population to broadband by 2025. 

To achieve this, Nigeria requires an estimated $3.4 billion in investments for fibre infrastructure and the Federal Government has launched a Special Purpose Vehicle (SPV) to spearhead this expansion, aiming to deliver an additional 90,000 km of fibre optic cable. 

This initiative aims to connect over 200,000 educational, healthcare, and social institutions across the country.

The probable economic impact of these investments cannot be overstated. Increased connectivity is expected to drive internet penetration beyond 70%, reduce internet access costs by more than 60%, and contribute to a 1.5% GDP growth per capita. 

This could see Nigeria’s GDP rise from $472.6 billion in 2022 to $502 billion within the next four years. Early indicators of the SPV’s effectiveness are positive, with 30,000 km of new fibre optic cables already laid and a 10% increase in internet penetration since its launch. 

Added to this, some regions have seen internet costs drop by up to 30%, boosting business efficiency and consumer access to digital services.

The Fragility beneath the Surface

While the opportunities are many, there are risks that could undermine these successes, causing adverse effects across Nigeria’s economy. 

Hillson’s ‘Practical Project Risk Management’ (2012) defines risk as uncertainty affecting outcomes. In financial contexts, Black and Scholes’ ‘The Pricing of Options and Corporate Liabilities’ (1973) and the PMBOK Guide (2017) note that “risk is an inherent part of doing business.”

A good way to understand these risks is to examine strategies of successful business leaders. Richard Branson and Aliko Dangote, for example, have both emphasized the necessity of taking calculated risks. 

In an interview with Forbes, Dangote noted, “To be successful, one needs to be able to take risks and make bold decisions,” which resonates with Branson’s view that “risk is an inherent part of doing business.”

According to records, in 2023, global business failures surged due to inflation, economic uncertainty, and supply chain issues. The U.S. reported 157,000 closures, up from 140,000 in 2022, while the UK saw around 18,000 insolvencies, a rise from 16,000. In Europe, Germany experienced a 10% increase in corporate bankruptcies.

Back home in Africa, business failures also increased, with Nigeria seeing about 12,000 closures, South Africa experiencing an 8% rise, and Kenya facing over 8,000 failures. Egypt encountered rising closures due to economic reforms and currency devaluation.

These statistics tell us about the fragility of the global and regional business environment, where even seemingly powerful sectors are not immune to failure. 

The Nigerian telecommunications sector, despite its supposed boom, faces several high risks that could deter future investments and potentially lead to a downturn.

Key among these risks is regulatory and policy fluctuations. Frequent changes in regulations can create an unpredictable business environment, making it difficult for investors to commit long-term. 

The consequences could include investor flight, as frequent changes in regulations may deter foreign investors, leading to a decline in FDIs inflows. Compliance with new regulations can be expensive, resulting in increased operational costs for telecom operators, while regulatory changes may disrupt existing services, negatively impacting customer satisfaction and business operations.

Again, multiple taxation by various government agencies increases operational costs, reducing profitability for telecom operators. 

The issue of Right of Way (RoW), where inconsistent policies across states make it cumbersome and expensive to lay fibre optic cables, also poses a serious challenge.

Another vital risk factor is Nigeria’s unreliable power supply. Telecom operators are forced to invest heavily in backup power solutions, further inflating operational costs. 

Interconnection settlement disputes among telecom operators, which can lead to service disruptions and financial losses, add another layer of risk.

Economic instability, denoted by fluctuations in exchange rates and inflation, is perhaps the most disturbing issue. 

Inflation has greatly impacted the sector in 2024, driving up the cost of imported equipment and operational expenses. This has put huge pressure on telecom operators to maintain profitability, with many calling for tariff increases to offset rising costs. 

However, in a price-sensitive market like Nigeria, higher tariffs could dampen consumer demand, creating a vicious cycle that threatens the sector’s growth.

Adding to these economic challenges is the unending insecurity and social unrest. The issues of terrorism, banditry, and kidnappings in Nigeria is gradually creating an environment that can deter foreign investors.

The fear of potential attacks and the safety of personnel and assets have put fear in the minds of people.

This insecurity can lead to increased costs for businesses, such as higher insurance premiums and the need for private security, which can reduce the attractiveness of Nigeria as an investment destination.

As inflation rates increase, the cost of living becomes more expensive for the average citizen, leading to a huge burden. These protests have disrupted business operations, supply chains, and overall economic activity.

For foreign investors, such disruptions can mean delays, increased operational costs, and uncertainty about the stability of their investments.

The unpredictability of these protests makes it challenging to plan long-term investments, further discouraging FDI.

If these risks are not addressed, the outstanding profits made in attracting FDIs could quickly unravel. As MTN’s CEO and other industry experts have warned, a lack of adequate returns due to these challenges could lead to a reduction in future investments. 

This would not just slow down the expansion and improvement of telecom infrastructure but could also lead to investors withdrawing altogether, potentially causing a collapse of the sector. 

Such a collapse would have far-reaching consequences, threatening the stability of other sectors that rely heavily on telecommunications, from finance to healthcare.

The resilience of Nigeria’s telecom sector is fixed on how well these risks are managed. While the opportunities are huge, the challenges are equally huge. 

It will require a joint effort from all stakeholders — government, private sector, and investors — to develop and implement sustainable strategies that ensure the sector’s continued growth and resilience.

In conclusion, the influx of FDIs in 2024 is a positive sign, but it is not a guarantee of success. Strategic risk management, clear regulatory frameworks, and a stable economic environment are essential to ensuring that Nigeria’s telecom sector survives and thrives in the years to come. 

The decisions made today will determine whether the sector remains a huge contributor to the country or becomes another casualty of unmitigated risks.

Dr. Bosun Tijani, the minister of Communications, Innovation and Digital Economy, announced this through this verified X handle, stating that the fibre optic cables will complement existing connectivity infrastructure and deliver a stronger national backbone for universal access to the internet across Nigeria.

President Bola Tinubu had received briefing from the Minister prior to today’s FEC meeting.

“Over the last few months, we have put in extensive groundwork to set up this SPV which will be modelled in governance and operations similarly to some of the best Public-Private Partnership setups in Nigeria, such as NIBSS and NLNG.

“Working with partners and stakeholders from the government and private sector, this SPV will build the additional fibre optic coverage required to take Nigeria’s connectivity backbone to a minimum of 125,000km, from the current coverage of about 35,000km. Upon delivery, this will become Africa’s 3rd longest terrestial fibre optic backbone, after Egypt and South Africa.

“This extensive coverage will enable us optimise the unique benefit of having 8 submarine cables already landed in Nigeria and therefore drive an uptake of the data capacity that the cables offer, beyond the current usage level of 10%.

“Building on our existing work with the Broadband Alliance, this increased connectivity will help plug the current non-consumption gap by connecting over 200,000 educational, healthcare and social institutions across Nigeria, ensuring that a larger section of our society can be included in the benefits of internet connectivity”.

According to the Minister, some of these immediate benefits include:

1. Increasing internet penetration in Nigeria to over 70%
2. Potential reduction of the cost of access to internet by over 60%
3. Inclusion of at least 50% of the 33 million Nigerians currently excluded from access to the internet
4. Delivering up to 1.5% of GDP growth per capita raising GDP from $472.6 billion (2022) to $502 billion over the next 4 year.

Recall that in March 2024, the FEC approved the Minister’s request to source funds to invest in fibre optic cables to cover the entire country.

The minister said that Nigeria plans to invest in 120 kilometers of fibre optic cable, but currently has about 35,000 kilometers.

The federal government also plans to complete the deployment of the fibre active network within the next two to three years.

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Not only that, the Commission suggests that the country needs massive investments in about 40,000 additional Base Transceiver Stations (BTS) to ensure the plan does not become a mirage.

Mr. Adeleke Adewolu the Executive Commissioner (Stakeholders’ Management), Nigerian Communications Commission (NCC), dropped while delivering the keynote address at the Third Annual Stakeholders Conference of Lagos State Infrastructure Maintenance and Regulatory Agency (LASIMRA), themed: “Transforming Lagos State into a Smart City Hub in Africa – The Government’s Infrastructure Approach”, held at the Eko Hotel, Victoria Island, Lagos.

Mr. Adewolu stated that the theme of the conference is very apt since the broadband infrastructure is the backbone of Smart Cities.

“It is inevitable that the NCC and LASIMRA must engage and collaborate, but sometimes in disagreement, as Lagos State is clearly the hub of telecoms and technology activities in Nigeria”, Adewolu stated.

The NCC Commissioner, however, urged the government at various levels to increase internet capacity in the country due to its huge infrastructure deficit, saying “for instance, we need over 120,000 additional kilometres of Fibre Optic Cables from the current figure of fewer than 60,000 kilometres and about 40,000 additional Base Transceiver Stations (BTS) to meet the NNBP targets by the year 2025”.

Smart City: Lagos Speeds Up Digital Infrastructural Development  

Meanwhile, Lagos State Governor, Mr. Babajide Olusola Sanwo-Olu has stated his administration’s commitment to improving the provision of adequate infrastructure to fast-track the Smart City Project to optimise the limitless opportunity of a fully digitised economy.

Mr. Sanwo-Olu, who was represented by the Deputy Governor, Dr. Kadri Obafemi Hamzat, noted that the bedrock of a functional Smart City is adequate and functional infrastructure.

The Governor opined that: “The theme of the conference expresses our administration’s commitment to the smart city project through the deployment of cutting edge technology to bring about improved and effective governance as well as providing the necessary infrastructure to support the widespread application of technology to create opportunities and enhance socio-economic growth”.

He added that one of the key pillars of his administration’s agenda is making Lagos a 21st-century economy, noting that a requirement to achieve this goal is technology, especially the availability of efficient and reliable internet service.

Sanwo-Olu, therefore, stated that it is for this reason that his government placed a high premium on the 6000 kilometers of fibre optic cable, aimed at improving access to functional, efficient and affordable internet service.

According to him, “A number of private initiatives are already springing up with huge investments that will deliver high speed and efficient internet service”.

To realise the Smart City dream, the Governor revealed that the State has recently re-launched its residents’ card, adding that the new residents’ card is an upgraded version of the former ordinary plastic to a smart card with embedded features for multipurpose uses in addition to identification purposes.

He added that in June last year, his administration created a seamless payment system for the multimodal transport system with the launch of Cowry Card, to ensure the digitisation of key government services, processes and procedures to improve efficiency, accountability and transparency.

The Governor, however, commended the management of LASIMRA for sustaining a cordial relationship between the State Government and the Nigerian Communications Commission (NCC).

He stressed that the relationship and collaboration have been of great impact on the State, underscoring the need for good and harmonious cooperation between the Federal and State agencies.

Earlier in her welcome address, Engr. Abisoye Coker-Odusote, the General Manager, Lagos State Infrastructure Maintenance and Regulatory Agency (LASIMRA), said that the State Government is committed to driving economic growth, improving the quality of life and keeping the State environmentally sustainable through the adoption of technology and data analytics.

She said: “The Sanwo-Olu led government is playing the role of coordinator and funder by bringing different interests and stakeholders together; providing funding for digital infrastructure and demonstrator projects, as well as a regulator through Lagos State Infrastructure Maintenance and Regulatory Agency”.

She added that the set of initiatives seen in some cities like Amsterdam, Barcelona, Dubai, Singapore and the likes, which are active in implementing Smart City strategies are the building blocks for Lagos State Smart City Project.