The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has urged state governments to abolish right-of-way charges on telecommunications infrastructure, warning that the fees are increasing deployment costs and discouraging network expansion into underserved communities.

ALTON Chairman, Gbenga Adebayo, made the call on Tuesday on the sidelines of a plenary session sponsored by IHS Nigeria at the 2026 Nigerian Economic Summit in Abuja.

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According to the association, right-of-way charges can account for between 50 and 60 per cent of the total cost of fibre-optic deployment in some states, creating a major obstacle to expanding reliable internet connectivity across the country.

Right-of-way charges are fees imposed for permission to access and use public or private land, roads and designated spaces for the installation of fibre-optic cables and other telecommunications infrastructure.

Adebayo said reducing these charges, particularly in rural communities and areas with limited commercial prospects, would lower deployment costs, attract investment and help bridge Nigeria’s digital divide.

“Today, the cost of right-of-way amounts to a significant part of the cost of fibre deployment. For every one kilometre of fibre that you deploy, in some of the states, the cost of right-of-way can be as high as 50 to 60 per cent of the cost of deploying the entire infrastructure,” he said.

The ALTON chairman called for legislation to provide free right-of-way access for telecommunications infrastructure, especially in communities where expected revenue may not justify the cost of building and maintaining networks.

He argued that operators needed a more supportive investment environment to extend services to locations where commercial returns were uncertain.

Beyond abolishing right-of-way charges, Adebayo urged the government to introduce incentives for telecommunications companies investing in underserved areas where infrastructure costs exceed the revenue operators could reasonably expect to generate.

He identified the Universal Service Provision Fund (USPF) as an existing intervention mechanism that could be used more strategically to support network expansion in communities with poor or no connectivity.

“There are also intervention funds. We have the Universal Service Provision Fund, which is designed for special intervention in those areas that are lacking coverage,” he said.

Adebayo rejected suggestions that telecommunications operators were unwilling to invest in rural communities, maintaining that the principal challenge was the commercial viability of deploying infrastructure in locations with limited demand and high development costs.

He said targeted government support and appropriate incentives could encourage operators to expand coverage while improving access to digital services.

The association also called for increased investment in fibre-optic cables, telecommunications sites and network capacity to improve service quality and prepare the country for emerging technologies.

Adebayo stressed that artificial intelligence depends not only on software and computing power but also on reliable telecommunications infrastructure capable of supporting connectivity and the transmission of large volumes of data.

He described telecommunications infrastructure as a foundation of the digital economy and called for stronger investor participation to address the sector’s infrastructure requirements.

At the summit, Chairman of the Senate Committee on ICT and Cybersecurity, Shuaib Salisu, said the National Digital Economy and E-Government Bill had reached its third reading, expressing optimism that the National Assembly would pass it before the end of 2026.

Salisu also said lawmakers were working on cybersecurity reforms and reviewing the Data Protection Act as part of efforts to strengthen Nigeria’s digital governance framework.

He pointed to the Federal Government’s planned 90,000-kilometre fibre-optic network as an initiative expected to extend connectivity to underserved communities and complement efforts to improve access to digital services.

The senator also identified the Three Million Technical Talent (3MTT) programme as an important initiative for developing the skilled workforce needed to support Nigeria’s expanding digital economy.

He encouraged businesses and industry stakeholders to engage lawmakers early in the legislative process, arguing that their contributions could help ensure proposed laws reflected industry realities and the conditions required to attract investment.

Also speaking at the summit, United States Mission Chargé d’Affaires in Abuja, Jimmy Mauldin, called for stronger investment partnerships between Nigeria and the United States.

He said bilateral cooperation should extend beyond trade to include job creation, technology transfer and support for local businesses.

Mauldin identified digital infrastructure, energy, manufacturing, agriculture, critical minerals and financial services as sectors offering opportunities for deeper economic collaboration.

He also cited Nigeria’s large youthful population, expanding technology sector and strategic position in West African commerce as factors that could support investment.

However, he stressed that predictable government policies, respect for contracts, efficient trade procedures and improved security were important to sustaining investor confidence and attracting long-term capital.

“Capital is mobile. And it’s also important to remember that capital is very selective,” he said.

Mauldin added that reliable electricity and secure communities were necessary for businesses to establish factories, deploy fibre-optic networks and maintain efficient supply chains.

The 2026 Nigerian Economic Summit brought together government officials, business leaders, policymakers and development partners to discuss investment opportunities, infrastructure development and strategies for accelerating economic growth.

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ALTON’s proposal places the cost of telecommunications infrastructure at the centre of Nigeria’s digital expansion debate, with the association arguing that lower right-of-way charges and targeted incentives could make network deployment more commercially viable, particularly in communities that remain underserved.