FG to Fund $2 Billion Fibre Optic Expansion to Boost Connectivity
The Federal Government of Nigeria is set to provide half of the $2 billion required to implement a 90,000-kilometre fibre optic project aimed at expanding the nation’s digital infrastructure.
Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, disclosed this during an interview on Arise TV recently.
He revealed that the initiative, which forms part of the government’s 2025 borrowing plans, will be financed through loans.
“Earlier this year, the Federal Executive Council (FEC) approved a memo to set up a special purpose vehicle (SPV) to deploy 90,000 kilometers of fibre optic cables in Nigeria. Half of that money is what the government will make available,” Tijani stated.
He explained that nearly $1 billion of the project cost will come from government loans, while the remaining half will be secured through private sector partnerships.
According to the Minister, significant progress has been made in securing funding, with institutions like the World Bank playing a key role in discussions.
The project, which has received strong backing from President Bola Tinubu and the Ministry of Finance, is expected to commence the laying of cables in the second quarter of 2025.
Tijani highlighted the importance of government investment in backbone connectivity infrastructure, citing widespread complaints about poor service quality due to insufficient infrastructure deployed by private operators.
“Operators invest primarily in areas where returns are higher, which leaves some parts of the country underserved,” he explained.
“For true nationwide connectivity, the government must step in and treat connectivity as a critical resource accessible to all citizens.”
The Minister emphasized that while private investment remains crucial, the government’s involvement will ensure more equitable access to digital services across the country.
To drive the project, an SPV will be established to oversee the fibre optic deployment. Though supported by government funding, the SPV will operate as a private entity, with government representatives on its board.
Tijani concluded by reaffirming the government’s commitment to enhancing digital infrastructure, describing the initiative as a vital step toward bridging Nigeria’s digital divide and fostering inclusive economic growth.
