The Minister of the Federal Capital Territory, Mohammed Bello, has announced a reduction of the Right Of Way Charges by 90% for Telecos. The announcement was made regarding Telecommunications operators that want to deploy broadband infrastructure in green areas in FCT.
This information was disclosed at the official launch of some projects in Abuja and aims to deploy broadband infrastructure in green areas for N14.50 as Right of way charges (RoW). It is in contrast to the initial harmonized charge of N145 in the country set by the Federal Government.
Bello said that the new discounted charges would take effect from December 1, 2022, and run for the
next two years.
What To Know About The Right of Way Charges
Minister Bello said; “it is their way of contributing to Broadband communication”. Bello also noted that green areas are areas where the infrastructure has not been established.
Speaking on the charges, he said the discounted charges only apply to the FCT Telecommunications operators
Furthermore, speaking at the occasion was Pantami Isa, the minister of Communications and Digital
Economy. He assured the citizens that he is at work to improve the internet speed and reduce its cost in Nigeria.
Pantami Isa also added that the FG has approved over N16 billion for broadband infrastructure projects
in the country’s six geopolitical zones.
RoW, also Right of Way charges refers to a levy paid by telecommunication companies to state
governments. In return, the government permits them to dig up the roads and install telecommunications
hardware that carries internet traffic.
The Harmonized Charge
Due to the inconsistencies across the states in terms of charges and the negative impact on the
broadband infrastructure, the FG 2017 approved a policy that resulted in a harmonized RoW charge
agreed by all the governors of the 36 states, including the FCT.
Before the harmonization, the telecom operators had been paying various sums in different parts of the
country, with such high and arbitrary charges seen as a disincentive to investment in the sector.
The step taken by the FCT Minister is seen undeniably as a way of improving the communication system
in the Federal Capital Territory.
It is suggested that other states should also adopt this policy. This will go a long way in relieving telecommunication operators of heavy charges to deploy broadband telecommunication in green areas across the countries.
Follow techkudi.com for more fintech news