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Nigeria Seeks Long-Term Capital, Power Reforms To Accelerate Digital Infrastructure Investment

newspegonline24 by newspegonline24
October 4, 2026
in News
Reading Time: 4 mins read
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NCC Reports 70% Progress On Network Expansion, Warns Against Call Masking

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By Nkechi Eze

Nigeria is seeking increased long-term investment, improved power supply and policy reforms to accelerate the development of digital infrastructure and expand meaningful connectivity across the country.

The call formed part of the resolutions of the Nigeria Digital Connectivity Investment Forum 2026, convened by the Nigerian Communications Commission (NCC) in partnership with Swedfund and Ookla in Abuja, where government, investors, financiers, infrastructure providers and other stakeholders examined barriers to digital infrastructure deployment and financing.

Held from September 29 to 30 under the theme, “Unlocking Infrastructure Investment through Data, Transparency and Partnerships,” the forum identified the cost and tenor of financing, Right of Way and permitting constraints, unreliable power supply and gaps in trusted infrastructure data as major barriers to the expansion of digital connectivity.

Participants urged the Federal Government to accelerate the delivery of Project BRIDGE, the proposed 90,000-kilometre national fibre backbone, as a strategic response to the country’s middle-mile connectivity gap, while also improving the availability and reliability of power for digital infrastructure.

They further called for sustained policy consistency and financing structures capable of reducing the cost of capital in the telecommunications sector.

According to the communiqué signed by the Director, Public Affairs Department, Nigerian Communications Commission, Nnenna Ukoha, Nigeria’s demand for digital services is growing rapidly, with the country consuming about 1.6 million terabytes of data in July 2026, representing an increase of almost 47 per cent within 12 months.

The communiqué noted that subscriptions were projected to rise from about 195 million to approximately 350 million within the next 10 to 15 years, while growing demand from cloud computing and artificial intelligence would place additional pressure on networks, data centres and power infrastructure.

The forum also observed that telecommunications and information services accounted for 9.72 per cent of Nigeria’s real Gross Domestic Product in the second quarter of 2026, underscoring the strategic importance of digital connectivity to the country’s economic development.

Participants, however, noted that while mobile broadband coverage had reached about 90 per cent of Nigerians, smartphone ownership remained at about 27 per cent, while broadband penetration stood at 57.4 per cent against a national target of 70 per cent.

They identified device affordability, digital skills and trust as major constraints to meaningful connectivity, stressing that coverage investment alone would not be sufficient to bridge Nigeria’s digital divide.

The forum also highlighted the critical role of power and middle-mile infrastructure in determining the pace and cost of digital deployment, with stakeholders advocating joint planning of energy and connectivity investments.

Participants recommended that tower clusters be recognised as anchor off-takers for distributed power generation, while data-centre requirements should be incorporated into the National Broadband Plan alongside off-grid and renewable energy solutions supported by blended finance.

The forum further called on State Governments to reduce and harmonise Right of Way and site permit charges, adopt the Federal model under which fibre operators reinstate roads after deployment, and shorten permitting timelines.

The NCC was urged to sustain reforms aimed at improving investment conditions, including tariff realignment, the designation of critical national information infrastructure and engagement with States on Right of Way reforms.

The Commission was also encouraged to publish the first national Nigeria Digital Connectivity Index report, advance open-access and wholesale regulation, and finalise the direct-to-device framework.

According to the communiqué, the pilot Nigeria Digital Connectivity Index across 12 States showed that Right of Way reforms had translated into fibre growth of between 22 per cent and 95 per cent in reforming States, while the number of States charging zero Right of Way fees had risen from seven in December 2024 to 12.

Investors and development finance institutions were also urged to match long-life digital infrastructure assets with long-tenor naira capital, link infrastructure financing to independently verified network performance and deploy blended financing and credit enhancement mechanisms to make emerging projects commercially viable.

The forum set a number of priority actions, including securing funding within six months for community co-owned rural networks powered by renewable energy in zero-connectivity communities, through partnerships involving the Universal Service Provision Fund, State Governments and the Rural Electrification Agency.

Within six to 18 months, stakeholders are expected to advance open-access and wholesale regulation, publish a wholesale rate card, complete broadband mapping, strengthen the Universal Service Fund as the primary financing source for underserved areas and develop the business case for indoor connectivity in commercial buildings.

Participants also called for the integration of data-centre requirements into the National Broadband Plan and the development of metro and access fibre under concession within 18 to 24 months, mapped against existing infrastructure and integrated with Project BRIDGE.

The forum was attended by the Minister of Industry, Trade and Investment, a representative of the Minister of Communications, Innovation and Digital Economy, the Ambassador of Sweden to Nigeria, heads of Federal agencies, development finance institutions, investment banks, institutional investors, mobile network operators, tower and fibre companies, satellite and fixed wireless providers, original equipment manufacturers and industry associations.

The communiqué said the NCC would sustain engagement with participants and relevant stakeholders to advance the agreed actions and investment pathways.

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