NCC Pushes Wholesale Fibre Market to Lower Internet Costs, Further Unlock Digital Economy

The Nigerian Communications Commission has called for the creation of a wholesale fibre market to unlock existing digital infrastructure, deepen broadband access and accelerate Nigeria’s transition from basic connectivity to a more productive digital economy.

The Executive Vice Chairman of the NCC, Dr Aminu Maida, made the case at the BusinessDay 2026 CEO Forum in Lagos, arguing that the country had reached a stage where digital policy must move beyond expanding telephone and internet connections to ensuring that infrastructure supports economic activity across healthcare, education, agriculture, manufacturing and other productive sectors.

Maida said Nigeria’s telecommunications journey had recorded substantial progress since the sector was liberalised in 2000, when the country had fewer than 500,000 telephone lines.

Today, Nigeria has more than 180 million active telecom connections, creating a broad foundation for digital inclusion, financial services, commerce and technology-enabled growth.

The next challenge, according to him, is not simply whether infrastructure exists, but whether operators can access it on fair, transparent and commercially viable terms.

Fibre exists, but access remains constrained

Maida challenged the widespread perception that many parts of Nigeria lack fibre connectivity entirely.

According to him, the country already has considerable fibre infrastructure across several states. The greater weakness is the absence of an effective framework that allows Internet Service Providers and other operators to access existing networks transparently and equitably.

“We actually do have connectivity, especially fibre, but what we do not have is a framework that enables fair and transparent access to that infrastructure,” he said.

The absence of a functioning wholesale market has limited the ability of smaller service providers to lease capacity from fibre owners at predictable prices. It has also contributed to duplication, underutilisation and uneven broadband expansion.

A wholesale framework would separate infrastructure ownership from retail service delivery more effectively, allowing operators without extensive fibre networks to buy capacity from those that own them.

Maida said the NCC was developing a framework that would introduce transparent pricing and ensure access to fibre infrastructure on fair commercial terms.

If implemented effectively, the model could lower entry barriers, encourage new investment and improve competition across Nigeria’s broadband market.

Why a wholesale market matters

Building national fibre infrastructure is capital-intensive. It requires large upfront investments, lengthy approvals, rights-of-way negotiations and long payback periods.

Without shared access, operators may be forced to build parallel networks along the same routes, increasing costs and leaving commercially weaker locations underserved.

A credible wholesale market could improve the economics of broadband deployment by allowing infrastructure to be shared among multiple service providers.

This could reduce duplication, strengthen network utilisation and help smaller ISPs enter markets previously dominated by large operators.

For consumers and businesses, the potential benefits include lower internet prices, wider service availability and stronger competition on quality.

The success of such a market will depend on enforceable pricing rules, non-discriminatory access, service-level standards and effective dispute resolution.

Infrastructure owners must be allowed to earn sustainable returns, while access seekers must be protected from excessive pricing or unfair exclusion.

Digital inequality extends beyond fibre routes

Maida said about 85 per cent of Nigeria’s ISPs operate mainly in Lagos and other large urban centres, despite the availability of fibre infrastructure elsewhere.

The concentration reflects the commercial realities of Nigeria’s digital economy. Lagos offers denser populations, stronger purchasing power, more businesses and greater demand for high-capacity broadband.

By contrast, operators face weaker returns, difficult logistics and lower household affordability in smaller cities and rural areas.

Expanding broadband outside major commercial centres would help narrow regional inequalities in internet access, service quality and digital opportunity.

Affordable connectivity is increasingly essential for students, entrepreneurs, healthcare providers, farmers and government institutions. Where broadband remains unreliable or expensive, communities risk being excluded from digital education, financial services, online commerce and modern public services.

Data centres must move beyond Lagos

Maida also called for the establishment of more data centres outside Lagos to strengthen Nigeria’s digital resilience and improve access to cloud services nationwide.

The concentration of data infrastructure in one city creates operational and economic risks. It can increase latency for users in distant regions and expose the wider digital economy to localised disruptions.

Regional data centres could improve service performance, support cloud adoption and encourage digital businesses to scale beyond Lagos.

They could also stimulate local ecosystems around software development, cybersecurity, managed services, enterprise technology and digital skills.

However, data-centre investment depends heavily on reliable power, security, fibre redundancy and predictable regulation. States seeking such investments will need to improve their infrastructure and business environments.

Technology must raise productivity

Maida said Nigeria must now put its digital infrastructure to productive use.

“It is about using technology to improve productivity and grow the economy,” he said.

Digital connectivity should support telemedicine, remote learning, precision agriculture, smart manufacturing, logistics, financial inclusion and more efficient government services.

The economic value of broadband does not lie only in the number of subscriptions. It lies in what people and businesses can accomplish with reliable access.

A connected farmer who still lacks market data, digital credit or logistics support gains limited value. A connected school without devices, trained teachers or relevant content remains digitally underserved. Infrastructure must therefore be integrated with skills, applications and institutional capacity.

Market and investor implications

A wholesale fibre framework could create opportunities for infrastructure funds, telecom operators, ISPs, tower companies, data-centre developers and cloud-service providers.

Investors are likely to welcome clearer rules on access and pricing, provided the framework offers regulatory certainty and adequate returns.

Greater competition engendered by the Wholesale fibre market could expand broadband demand and create opportunities in enterprise connectivity, cybersecurity, digital payments, health technology and educational platforms.

The main risks include policy inconsistency, weak enforcement, rights-of-way costs and persistent power shortages.

Brand implications

For the NCC, the initiative strengthens its positioning as a market-shaping regulator focused on competition, inclusion and productive connectivity.

For telecom operators, transparent infrastructure sharing could improve public perceptions around affordability and service quality.

Companies that expand beyond premium urban markets and develop services for underserved communities may build stronger trust and long-term brand relevance.

BRANDECONOMY Insight

Nigeria’s digital economy does not suffer only from an infrastructure shortage. It also suffers from fragmented access to infrastructure that already exists.

A wholesale fibre market could unlock stranded capacity, reduce duplication and give smaller operators a stronger chance to compete.

But regulation must strike a careful balance. Prices must be fair enough to encourage access and commercially viable enough to reward infrastructure investment.

The goal should not be broadband for its own sake. It should be broadband that powers hospitals, classrooms, farms, factories and businesses.

Nigeria’s next telecom revolution will not be measured by the number of active lines. It will be measured by how effectively connectivity raises productivity, reduces inequality and creates economic value.