FG Set To Revive Abandoned Rural Telephony Project With $3bn

As the Nigerian telecom indus­try continues to struggle in the deployment of its services, the Federal Government has con­cluded plans to invest $3 billion in infrastructure to give life to the rural telephony initiative which has suffered neglect over the years.

The decision of the govern­ment, in conjunction with the World Bank for the strategic in­vestment, is hinged on the hope that the deployment of modern infrastructure and equipment will significantly improve con­nectivity and provide more Ni­gerians, especially those in rural areas with reliable and affordable internet access that can stimulate economic growth, and enhance citizen engagement.

 Speaking on the development, the Minister of Communications, Innovation and Digital Economy, Bosun Tijani, said the country will receive telecommunications equipment and fibre optic infra­structure worth $3 billion in June 2025, noting that the equipment valued at $1 billion was expected to arrive in the country by mid- 2025.

He added that an additional $2 billion worth of fibre optic cables would soon be delivered to boost Nigeria’s telecommunications infrastructure.

In 2002, the rural telephony project was initiated in 2002 with the objective to reduce rural-ur­ban migration and give universal access to telecommunications to all Nigerians.

The Federal Government came up with the project with the hope that the country would make billions of naira on tax, em­ployment generation and levies.

The project has the potential of creating millions of direct and indirect jobs in a few years. But industry stakeholders expressed reservations on the viability of the rural telephony project, stat­ing that the policy would not see the light of the day because of the implementation process. Predict­ably, the initiative has dragged for over two decades without remark­able success.

With the new partnership be­tween the Federal Government and the World Bank, it is only hoped that the funds would be ju­diciously put into use to deepen broadband connectivity across the country.

The fund is expected to deploy an additional 120,000km of fibre optic cables to leapfrog broadband infrastructure and connectivity in Nigeria by 2027.

Early, this year, the Federal Government announced plans to build 7,000 new communication towers in rural areas to expand access to telecommunications services and improve digital con­nectivity across the country.

The approval was granted by the Federal Executive Council (FEC), as part of a broader strate­gy to bridge the digital divide.

The investment in the con­struction of the towers will com­plement the ongoing deployment of 90,000 kilometres of fiber-optic cables across the country.

Already, Nigeria has laid 3,035km of fibre optic cables, but 120,000km of fibre optic ca­bles would be required to boost broadband infrastructure and connectivity for Nigerians to have quality and efficient access to the Internet and other digital services irrespective of their locations.

As of the end of 2023, only 78,676km of fibre optic cables have been deployed in the country.

The first phase of the project would involve laying 95,000km of fibre optic cables across Nigeria to make the digital ecosystem vibrant.

The initiative aims to signifi­cantly enhance communication services across the country and bridge the connectivity gap with a pilot phase targeting over 20 mil­lion Nigerians who currently lack access to any form of telecommu­nications to soon be launched.

Before now, some efforts had been made to bridge the digital gap, but actions were not sus­tained.

For example, in pursuit of the rural telephony initiative, a US Trade and Development Agen­cy-funded feasibility study for Nigeria’s Hotspot Network Lim­ited in 2023 led to the issuance of financing for the deployment of 120 solar-powered rural telecom­munications base stations across 22 states in Nigeria.

Hotspot is a telecommunica­tion infrastructure and solar-pow­ered rural telephony network provider, using renewable energy and climate-smart technology in operating telecom sites in off-grid rural parts of Nigeria.

Acknowledging the transfor­mation the new arrangement will bring about, the minister noted: “There are still millions of Nigeri­ans on the fringes of digital trans­formation who are yet to have ac­cess to reliable connectivity. Many communities, particularly rural areas face significant barriers, in­cluding inadequate infrastructure and limited digital literacy.

“These gaps not only hinder personal and business growth but also limit the full potential of Nigeria’s digital economy.

“Some of our flagship initia­tives to close this divide include: Project BRIDGE (90,000km Fibre Optic Expansion), which is de­signed to significantly improve broadband penetration across Nigeria by extending fibre optic infrastructure to all regions.”

The lack of mobile networks in many rural areas which the rural telephony scheme would have addressed has been creating huge gaps in many communities, depriving the people from enjoy­ing digital services.

For instance, in the past cou­ple of years, the financial system in Nigeria has been leveraging technology to bridge the gap and provide accessibility to under­served communities. Point-of-Sale (POS) machines have taken some form of banking services to the unbanked.

Industry observers opine that the $3 billion grant from the World Bank should be channeled appro­priately so that every average Ni­gerian can access and afford dig­ital services from their locations.

COURTESY: Independent