Operating costs in Nigeria’s telecom sector have soared to a record ₦5.85 trillion in 2024, according to the Nigerian Communications Commission (NCC). This marks an 85% increase from ₦3.16 trillion in 2023, driven mainly by high Right-of-Way (RoW) charges, inflation, and energy costs.

RoW fees the charges operators pay to lay fibre cables along public roads remain steep across several states. Ogun (₦9,477 per metre), Lagos (₦6,264), and Oyo (₦5,303) top the list, while others like Cross River, Rivers, and Edo also maintain high rates.

The NCC report also shows capital expenditure rising to ₦2.9 trillion in 2024, up 159% from ₦1.12 trillion in 2023, as operators expand infrastructure to meet growing data demand.

Despite these investments, broadband penetration stood at 49.3% as of September 2025, below the government’s 70% target under the National Broadband Plan.

Analysts warn that escalating costs could slow network expansion and raise consumer tariffs. They urge states to adopt the federal benchmark of ₦145 per metre to reduce deployment costs and boost digital connectivity.

The NCC says it is engaging state governments to harmonize RoW fees and ease infrastructure rollout nationwide. Visit www.jocomms.com for more news.