Morganable Technology | Telecoms
Nigeria is turning to community ownership and blended financing to extend telecommunications services to rural communities with little or no connectivity.
Lagos —
Nigeria’s Federal Government is turning to community ownership and blended financing to extend telecommunications services to rural communities with little or no connectivity.
The plan will combine public funding, renewable energy and state government support to build telecom towers and rural networks in areas where commercial investment has remained difficult.
Stakeholders have also agreed to secure funding within six months. This gives the initiative a clear timeline to move from discussion to implementation.
The decision followed the Nigeria Digital Connectivity Investment Forum, organised by the Nigerian Communications Commission (NCC), Swedfund and Ookla. The forum brought together government agencies, investors, telecom operators and other industry stakeholders to discuss the country’s connectivity gap.
Under the proposed model, communities would play a direct role in owning and maintaining telecom infrastructure. Instead of leaving rural projects entirely to government agencies or private operators, communities could form cooperatives.
These cooperatives could share revenue and help maintain the facilities. In turn, this could give residents a stronger interest in protecting the infrastructure and keeping the networks operational.
For many rural Nigerians, the plan could make a significant difference. Reliable internet access now supports education, healthcare, farming, financial services, small businesses and everyday communication.
Therefore, communities without stable connectivity risk falling further behind as more economic and social activities move online.
The proposed funding structure also recognises the strong link between telecommunications and electricity. A telecom tower needs dependable power to operate. Similarly, a network without adequate backhaul cannot provide reliable broadband services.
As a result, the Universal Service Provision Fund (USPF) is expected to support the telecommunications side of the programme. This could include towers, base stations, small cells, backhaul and other essential infrastructure for communities with little or no connectivity.
The Rural Electrification Agency (REA), meanwhile, is expected to support the energy component.
Its role could include providing solar panels, batteries and solar mini-grids to power telecom sites. This will be particularly important in areas where the national electricity grid is unreliable or unavailable.
State governments will also have important responsibilities. They are expected to provide land, security and Right of Way support to make infrastructure deployment easier.
This three-way approach could reduce some of the delays that have affected rural connectivity projects in the past.
Importantly, the government is not treating the initiative as a simple tower-building exercise. Stakeholders at the forum also recognised the need for long-term financing.
Digital infrastructure requires significant capital and can take years to generate sustainable returns. Therefore, financing arrangements must reflect the long operating life of telecom assets.
Stakeholders argued that infrastructure expected to operate for 20 to 30 years should not depend mainly on short-term commercial loans.
The need for stronger investment has become more urgent as Nigerians consume more data. NCC figures show that mobile broadband coverage has reached about 90 per cent.
However, broadband penetration remains below the government’s target. Smartphone ownership also remains a challenge.
This creates an important difference between having network coverage and actually using digital services.
For example, a community may have access to a mobile signal but still struggle to participate in the digital economy. Residents may lack affordable smartphones, data or the digital skills needed to use online services effectively.
Consequently, the new rural connectivity strategy will need to go beyond infrastructure.
Affordable devices, lower access costs, digital skills and reliable electricity will all influence whether newly connected communities can benefit from the investment.
The government is also planning a major expansion of physical connectivity. About 3,700 towers are planned under the broader programme, with an initial target of deploying 200 towers by December 2026.
The rollout will work alongside shared rural networks, satellite connectivity, micro-cabling and solar-powered sites.
In addition, stakeholders have urged the government to accelerate Project BRIDGE, a planned 90,000-kilometre national fibre backbone.
The project is expected to strengthen the middle-mile infrastructure needed to move internet traffic across the country. It could also reduce the cost of extending broadband services to underserved areas.
Shared infrastructure could play a bigger role as well.
Instead of requiring different operators to build separate facilities in the same locations, neutral-host and infrastructure-sharing models could allow several providers to use common assets.
This approach could lower deployment costs and make rural investment more attractive to telecom operators and other investors.
However, community ownership will require careful planning.
Communities will need clear rules covering ownership, revenue sharing, maintenance and accountability. They will also need technical support to manage equipment and protect infrastructure from damage or theft.
Sustainability will be another major issue.
Communities will need workable business models that can keep the networks running after the initial investment. Without a reliable source of revenue, newly built facilities could eventually become difficult to maintain.
If the model succeeds, however, rural residents could become more than consumers of telecommunications services.
They could become active participants in the infrastructure serving their communities. Revenue from the facilities could support maintenance while giving residents a stronger reason to protect the assets.
The initiative also fits into the Federal Government’s wider push to expand digital connectivity.
President Bola Tinubu said in his October 1 Independence Day address that the government would expand digital connectivity into communities that have waited too long to participate in the modern economy.
For rural households, that promise could create new opportunities.
A reliable internet connection can help a farmer access market information. It can allow a student to reach learning materials and help a small business connect with customers.
It can also make it easier for families to use digital financial services and access important information.
Still, implementation will determine whether the plan delivers lasting change.
Funding must arrive on time. Projects must reach the communities that need them most. Most importantly, the infrastructure must remain affordable, reliable and functional after installation.
Nigeria’s connectivity challenge is therefore not only about putting more towers on the ground.
It is about building an ecosystem where infrastructure, electricity, affordability, digital skills and community participation work together.
With the six-month funding target now set, attention will shift to execution.
If government agencies, state governments, investors and communities maintain cooperation, the proposed model could help bring reliable digital services to communities that commercial investment has previously overlooked.
