HomeBusiness and TechNCC Seeks Cost-based Pricing Framework for Fibre Infrastructure

NCC Seeks Cost-based Pricing Framework for Fibre Infrastructure

Othniel Canice, Abuja

The Nigerian Communications Commission (NCC) has intensified efforts to develop a transparent, sustainable and cost-based pricing framework for sharing telecom ducts under Nigeria’s Dig-Once policy, as part of measures to accelerate broadband infrastructure deployment and reduce the cost of expanding fibre networks across the country.

The initiative was the focus of a stakeholders’ forum in Abuja, which brought together state government representatives, telecom operators, tower companies, infrastructure providers, consultants and officials of the Nigeria Governors’ Forum to deliberate on a pricing mechanism that balances commercial viability with public interest.

Speaking at the forum, the Permanent Secretary of the Ministry of Communications, Innovation and Digital Economy, Nadungu Gagare, described the engagement as a critical step towards achieving the objectives of the Dig-Once policy.

He said the policy remains one of the Federal Government’s key interventions for accelerating fibre infrastructure development by reducing broadband deployment costs, preventing repeated road excavations and encouraging the efficient use of national resources.

“The Dig-Once policy remains one of the government’s strategic interventions for accelerating fiber infrastructure development. Its full potential can only be realised when supported by a pricing framework that is transparent, commercially viable, equitable, and encouraging of infrastructure sharing.”

Gagare said digital infrastructure is central to the administration’s agenda because it provides the foundation for innovation, digital inclusion, economic diversification and national competitiveness.

He noted that every kilometre of fibre deployed would help connect underserved communities, support businesses, create employment opportunities and expand economic activities across the country.

Read Also: Lawmakers Advance Reforms to Expand Broadband Access

The Permanent Secretary urged stakeholders to provide practical recommendations that would strengthen investor confidence while protecting the public interest, assuring participants of the ministry’s commitment to working with the NCC and industry players to translate the study’s recommendations into implementable policies.

Earlier, the NCC Director of Policy, Competition and Economic Analysis, Ayuba Shuaibu, said the commission initiated the consultation to build consensus among stakeholders and ensure seamless collaboration in developing the proposed pricing model.

He explained that the consultation was prompted by longstanding concerns over permits, multiple levies and varying charges imposed by different levels of government on telecom infrastructure deployment.

According to him, bringing together state commissioners, telecom operators, tower companies and representatives of the Nigeria Governors’ Forum has improved understanding of the issues affecting broadband expansion.

Shuaibu said the Dig-Once initiative is designed to reduce the cost and complexity of network deployment by promoting coordinated civil works and the shared use of underground duct infrastructure.

He stressed, however, that the policy could only achieve its objectives if supported by a clearly defined and economically sound pricing framework that guarantees equitable access while protecting infrastructure investments.

“Without a well-defined pricing mechanism, the objectives of efficiency, fairness, and investment protection may not be fully realised,”

Shuaibu warned that the ongoing study seeks to provide a structured approach to access fees.

He added that the engagement remains a work in progress and that additional stakeholder contributions would be incorporated before the final recommendations are presented to the Nigeria Governors’ Forum.

Also speaking, the Commissioner for Innovation, Science and Technology in Kogi State, Helen Adeneye, welcomed the consultation, describing it as an important step towards creating a harmonised national framework for broadband infrastructure deployment.

She said Nigeria requires a unified policy that clearly defines the responsibilities of the federal and state governments while improving collaboration between state authorities and telecom operators.

The Chief Executive Officer of WTES Projects Limited, Chidi Ajuzie, whose firm is conducting the consultancy study, said the proposed framework would establish a common cost structure for duct sharing that would support broadband investment, wider adoption of digital services and economic growth.

He disclosed that consultants had already developed preliminary floor and ceiling prices to guide infrastructure operators while retaining flexibility within an approved pricing range.

Ajuzie said the proposals remain open to further industry input before the NCC finalises the framework.

Also speaking, the Managing Director of Dimension Data Ltd, Olugbenga Olabiyi, represented by the company’s Lead Solutions Architect and IT Systems and Infrastructure specialist, Akpevwe Egbelughe, said the high cost of civil engineering works remains one of the biggest obstacles to broadband deployment in Nigeria.

He noted that the construction of ducts, conduits, manholes, poles and related infrastructure accounts for the largest share of broadband deployment costs, adding that passive infrastructure is globally recognised as the most expensive and least replicable component of fibre network expansion.

According to him, regulators worldwide increasingly promote infrastructure sharing to reduce costs, improve operational efficiency, encourage investment and accelerate broadband rollout.

He added that Nigeria’s proposed pricing framework aligns with international best practices aimed at expanding digital connectivity.

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