The Federal Government said on Wednesday it had made significant progress in discussions with Development Finance Institutions to establish a Special Purpose Vehicle aimed at expanding the nation’s fibre optic network by 90,000 kilometers.

The Minister of Communications and Digital Economy Bosun Tijani highlighted a productive meeting with stakeholders that outlined the necessary steps for the SPV.

“We had an extremely productive conversation with Development Finance Institutions and other stakeholders to identify and outline steps towards setting up the SPV to build out 90,000 km of fibre optic connectivity across Nigeria,” Tijani said on X (formerly Twitter).

The move follows the government’s approval in May, with significant progress made over several months to ensure better internet access, particularly in rural and underserved areas.

The SPV, which will manage the project’s implementation, finances, and operations, will be modeled on successful public-private partnerships like the Nigeria Inter-Bank Settlement System (NIBSS) and Nigeria Liquefied Natural Gas (NLNG).

The project will boost Nigeria’s existing fibre optic cable infrastructure from 35,000 km to 125,000 km, making it the third-longest terrestrial fibre optic backbone in Africa, behind South Africa and Egypt.

This initiative aims to strengthen the national internet backbone and optimize the use of the eight submarine cables already landed in Nigeria.

Tijani expressed gratitude to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the World Bank, and several other partners for their support in this initiative.

“With this project, we are committed to fundamentally improving connectivity across the country and enhancing the lives of all citizens,” Tijani added.

Two weeks ago, the Nigerian government initiated talks with the World Bank on the project, which is expected to deepen the country’s digital economy. An additional 90,000 km of fibre optic cable will ensure the inclusion of at least 50 percent of the 33 million Nigerians currently excluded from internet access.

The minister noted the project’s potential economic impact, projecting GDP growth of up to 1.5 percent per capita, raising GDP from $472.6 billion in 2022 to $502 billion over the next four years.

The National Broadband Plan 2020–2025 addresses three of the eight priorities that the Nigerian Government assigned to the Federal Ministry of Communications and Digital Economy, and the parastatals under its purview.

“These priorities include the implementation of broadband connectivity, the deployment of 4G across the country, and the development of a digital economy policy and strategy,” according to the Ministry’s document.

The new broadband plan is designed to deliver data download speeds of at least 25 Mbps in urban areas and 10 Mbps in rural areas, with effective coverage available to at least 90 percent of the population by 2025, at a price not exceeding N390 per 1GB of data (2 percent of median income or 1 percent of the minimum wage).

Currently, about 71 percent of Nigerians still lack regular access to mobile internet, according to a GSMA report. The report recommends policy initiatives to reduce the cost and complexity of infrastructure rollouts to encourage investment and boost broadband adoption. (The PUNCH)

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