New Funding for Broadband Infrastructure Companies Coming, says Nigeria

Indications have emerged that Nigeria would roll out new support grant for licensed Internet Broadband Infrastructure Companies, in the bid to address the funding gap mitigating the laying of a nationwide broadband infrastructure for the country.

This indication emerged as the Nigerian Communication Commission (NCC) over the weekend revealed it has constituted a committee to review framework for the licensing of Infrastructure Companies (InfraCo) and recommend sustainable funding options efficient for implementing the proposed nationwide fibre laying project.

The constitution of the committee, the telecoms regulatory commission said, was sequel to the requirements of the new Nigerian National Broadband Plan (NNBP 2020-2025) and reports of relevant committees set up by the Federal Executive Council (FEC), which include the Inter-Ministerial Review Committee on Multiple Taxation on Telecommunications Operators over Right-of-Way (RoW) and the Technical Sub-Committee on Right-of-Way for Deepening Broadband Penetration in Nigeria.

It further explained that the review of InfraCo framework would imperatively cater for the delays in take-off of projects, hassles of unstable exchange rate, quagmire of other supply chain values and other challenges imposed by the COVID-19 pandemic.

The development report further indicated the Committee set up by the Commission has met with all the six licensed InfraCos as well as the preferred bidder for the North Central zone. The Committee is also looking at the challenges facing the InfraCo project, the need for accelerated deployment of fibre infrastructure, means of mitigating the exorbitant RoW charges, among others.

The Commission is also working actively with the Broadband Implementation Steering Committee (BISC), as constituted by the Hon. Minister of Communications and Digital Economy, Isa Patanmi based on the recommendations and requirements of the NNBP 2020-2025.

Providing updates on the status of the InfraCo project in his office in Abuja also at the weekend, the Executive Vice Chairman of the Commission, Prof. Umar Garba Danbatta, said:
“The InfraCo project is dear to the government because of its ability to enhance robust and pervasive broadband infrastructure to drive service availability, accessibility and affordability.”

According to him, “We are keen on ensuring the project delivers maximum benefits for the economy at large and that is why the ongoing review is very critical to the overall success of the project in line with the new realities of the time.”

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The EVC clarified that the current status of the InfraCo project, as provided above, is contrary to reports suggesting that the Commission is inching towards executing the counterpart funding in respect of the project.

Recalled that NCC had mentioned that about 265 billion naira would be raised within the next 4 years by the Nigerian Communications Commission (NCC) and a consortium of Infrastructural Companies (Infracos) for the development of broadband infrastructures across the country.

And, the Executive Vice Chairman of NCC, Prof Umar Garba Danbatta stated that the NCC would raise 65 billion naira as counterpart funding subject to the approval of the Federal Executive Council, while the Infrastructural Companies would raise the balance of 200 billion naira.

Also, according to Danbatta, payment would be made to the infrastructure companies handling the projects upon attainment of milestones benchmarked for all the 774 local government councils of the country including Federal Capital Territory, FCT.