The Federal Government announced on Wednesday significant progress in discussions with Development Finance Institutions to establish a Special Purpose Vehicle (SPV) to expand Nigeria’s fiber optic network by an additional 90,000 kilometers.
Minister of Communications and Digital Economy, Bosun Tijani, highlighted a productive meeting with stakeholders to outline steps towards setting up the SPV. He emphasized the goal of enhancing internet access, particularly in rural and underserved areas.
The SPV, modeled after successful public-private partnerships like NIBSS and NLNG, will manage the project’s implementation, finances, and operations. This initiative aims to boost Nigeria’s existing fiber optic infrastructure from 35,000 km to 125,000 km, positioning it as Africa’s third-longest terrestrial fiber optic backbone.
The project is set to optimize the use of existing submarine cables and strengthen Nigeria’s national internet backbone. Tijani expressed gratitude to Minister of Finance Wale Edun, the World Bank, and other partners for their support. According to him, the government initiated talks with the World Bank on the project two weeks ago, aiming to deepen Nigeria’s digital economy and include 50 percent of the currently excluded 33 million Nigerians in internet access.
The project is projected to contribute significantly to economic growth, potentially increasing GDP per capita by up to 1.5 percent and boosting GDP to $502 billion over the next four years.
The National Broadband Plan 2020–2025, under the Ministry of Communications and Digital Economy, targets broadband connectivity, 4G deployment nationwide, and a digital economy policy to achieve data download speeds and coverage targets by 2025.
Despite ongoing challenges, such as limited mobile internet access for 71 percent of Nigerians, the initiative seeks to reduce infrastructure costs and complexity to encourage investment and broadband adoption, aligning with global recommendations for policy initiatives.