NCC Seeks Long-Term Financing To Bridge Nigeria’s Digital Connectivity Gap
By Stella Enenche, Abuja
The Nigerian Communications Commission (NCC) has called for long-term financing and stronger public-private partnerships to accelerate the expansion of digital infrastructure and bridge Nigeria’s connectivity gap.
NCC made the call in a communiqué issued at the end of the Nigeria Digital Connectivity Investment Forum 2026, according to a statement made available on Sunday by the commission’s Director Public Affairs Department, Mrs Nnenna Ukoha.
The forum, which brought together policymakers, investors, development finance institutions, telecommunications operators and infrastructure providers, focused on unlocking investments through data, transparency and strategic partnerships.
The telecommunications regulator said the lifespan of telecommunications infrastructure, which ranges between 20 and 30 years, makes it imperative for investors and financial institutions to provide long-tenor capital rather than relying on conventional short-term bank loans.
Participants noted that although infrastructure financing in Nigeria had increased from less than N70 billion in 2004 to N19.4 trillion in 2025, access to affordable long-term capital remained a major challenge to digital infrastructure development.
“Long-life assets require long-tenor capital,” the communiqué stated, warning that telecommunications infrastructure could not be sustainably financed through five-year bank facilities.
It stressed that access to long-term financing must be supported by sound governance, management capacity and predictable policies to attract private and institutional investors.
The forum also identified high electricity costs, Right of Way charges, permitting constraints and inadequate middle-mile connectivity as major obstacles to expanding broadband infrastructure, particularly in underserved communities.
Participants urged the Federal Government to accelerate the implementation of Project BRIDGE, the proposed 90,000-kilometre national fibre backbone, to improve connectivity and reduce the cost of deploying digital infrastructure across the country.
They also called for complementary investments in reliable electricity supply, noting that energy and telecommunications infrastructure must be developed together to support the growing demand for data services.
The communiqué disclosed that Nigeria consumed about 1.6 million terabytes of data in July 2026, representing an increase of almost 47 per cent within 12 months, while subscriptions are projected to grow from about 195 million to 350 million over the next 10 to 15 years.
It warned that the increasing adoption of artificial intelligence and cloud computing would place additional pressure on telecommunications networks, data centres and electricity infrastructure.
Despite mobile broadband coverage reaching about 90 per cent of Nigerians, the forum noted that broadband penetration remained at 57.4 per cent, against a national target of 70 per cent, while smartphone ownership stood at approximately 27 per cent.
It therefore emphasised the need to address device affordability, digital skills and public trust alongside infrastructure expansion to ensure meaningful connectivity.
The participants urged investors and development finance institutions to match long-life digital infrastructure assets with long-tenor naira capital, while deploying blended financing and credit enhancement mechanisms to make commercially challenging projects viable.
They also recommended linking infrastructure funding to independently verified network performance to improve transparency and reduce investment risks.
The forum called on state governments to harmonise Right of Way and site permit charges, shorten approval timelines and adopt policies that would encourage fibre deployment.
It noted that reforms in Right of Way charges had translated into fibre growth of between 22 and 95 per cent in states that implemented the changes, while the number of states charging zero Right of Way fees had increased from seven in December 2024 to 12.
The NCC was urged to sustain investment-friendly reforms, publish the first national Nigeria Digital Connectivity Index report, advance open-access and wholesale regulation, and finalise the direct-to-device framework.
The forum also recommended funding community-owned rural networks powered by renewable energy in communities without connectivity within six months, through partnerships involving the Universal Service Provision Fund, state governments and the Rural Electrification Agency.
Other priority actions include completing broadband mapping, developing financing frameworks for telecommunications power and expanding metropolitan and access fibre networks under concession arrangements.
Chief Executive Officer of Chapel Hill Denham, Bolaji Balogun, who spoke at the forum, emphasised the importance of investable projects, appropriate financing structures and capital-market participation in attracting long-term private investments.
Similarly, Chairman of the Board of FCMB and Managing Director of Financial Derivatives Company, Bismarck Rewane, highlighted the importance of investor confidence, policy predictability and the cost and availability of capital in driving infrastructure investment.
The participants said addressing financing constraints, electricity challenges, permitting delays and gaps in infrastructure data required coordinated action by government, regulators, investors and industry players.
The NCC pledged to sustain engagement with stakeholders to advance the agreed investment pathways and accelerate the development of Nigeria’s digital connectivity infrastructure.
