₦airaland Forum

The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, has said that the federal government will provide half of the $2 billion required to deliver the country’s 90,000-kilometre fibre project.

The Minister, who disclosed this while featuring on an Arise TV program on Friday, said the project, which will be financed by loans is part of the government’s borrowing plans for 2025.

“Earlier this year the FEC approved a memo which was to set up a special purpose vehicle that is meant to deploy 90,000 kilometers of fiber optic cables in Nigeria. Half of that money is what the government will make available.

“The half that the government is making available which is just short of $1 billion is being secured through loans,” the Minister stated.

Presidency’s support

Tijani said the project has also received immense support from President Bola Tinubu, the Ministry of Finance, and the Minister as well.

In addition to the government funding, he said the Ministry has secured private companies that will provide the other half of the funding for the project. While noting that significant progress has been in terms of discussions with funding partners of the project, especially the World Bank, the Minister said the government is hoping to commence digging for the laying of the cables in Q2 2025.

Why the government must invest in backbone infrastructure

On why the government must invest in backbone connectivity infrastructure, Tijani, said many Nigerians are complaining of poor quality of service today because of the inadequacy of the infrastructure deployed by the private operators.

He noted that the operators would only invest in areas where they can get higher returns, which is why some parts of the country have been experiencing a lack of or poor connectivity.

“When we came in the assessment we did was that as a nation you have two options to build in the backbone for digital economy and connectivity.

“For people to truly enjoy quality connectivity, you will either have to rely on private companies, the MNOs, the infracos, to put their private funding into building expansive and extensive network for connectivity within the country.

“But the challenge with that approach, which is the first approach, is that businesses would only invest significantly where they are sure that their returns can be guaranteed almost immediately, at least in a short to medium-term sense.

“The other option, which is the common option that you’ve seen in many progressive countries, is that government will have to understand and of course put its own skin in the game, knowing that connectivity is now clearly an important resource that every citizen should have access to, regardless of where you find yourself,” he explained.

He said this realisation led to the setting up of a special purpose vehicle to drive the deployment of 90,000 kilometers of fibre cable across the country.

According to him, the SPV is not a government entity but the government will invest in it and it will be managed as a private entity with the government representative as part of its board.

CodeTemplarr:
Fibre is good but :
1. We are broke as a country.
2. Vandalism.
3. The project lacks purpose and that's a recipe for looting.

femisplash:
This is surely coming from an illiterate. The rush to comment out of sheer ignorance is alarming here.

femisplash:
Nigeria is currently on 35,000km capacity, with 90,000km, that'd expand the capacity to 125,000km of fiber optic cable capacity. 33million Nigerians lack access to connectivity and that's a huge number that has to be drastically reduced. We need more coverage access across every space of the country, in the creeks, and ungoverned deserts. It would eliminate slow connectivity and low signal strength. Businesses would spread across as much as there're coverage expansion into remote areas.

Fortune365:
Government of loans

femisplash:
You guys talk as if borrowing is a demonic exercise. The loan is a single digit interest and we have the capacity of repaying.

bigpicture001:
Is this one better than cheap affordable and plentiful gigantic housing projects scattered all accross the nation...?

U guyz need to set priority right

femisplash:
This is surely coming from an illiterate. The rush to comment out of sheer ignorance is alarming here.

Angelfrost:
No, you don't... Please, don't ever use 'repaying' and Nigeria in the same sentence.

Check the records!

If we ran a corruption-free system, I wouldn't be worried or bothered, as the system would be such that every penny would be accounted for, and the profits used to offset the loan within a few years.


The money borrowed by Buhari for his white elephant projects won't be repaid in 3 generations.

femisplash:
Does it stop the housing projects?. Will the potential occupants of those houses not need connectivity?

Lifestone:
He's raising very valid points and I expected you to offer clarifications where he has concerns. Give information if you have or keep quiet

EpicDude123:
Shameless Government... No single Dignity at all. I think it's high time we protest against all these institutions dishing out loans to Nigeria.

bigpicture001:
Set ur priorities right... The people need houses first before they need connectivity.....

femisplash:
There's nothing valid in his points, they're mere pessimism. Are we not currently on 35,000km of fibre cables, why are we not scared of vandalism?

femisplash:
Mention which loans we have defaulted in the last 5years?.

CodeTemplarr:
Educate us then, Mr literate.

Angelfrost:
Are you saying we are debt-free?!!

Are you saying it's okay to service interests on loans by mortgaging our resources and revenues every year?!! For projects that barely bring forth profits?

What exactly do you mean by defaulting in loans repayment in the last 5 years, or you don't understand what I posted?!!

femisplash:
Mention any top 5 economies that's not indebted.
You guys need to enlighten yourself on borrowing.

femisplash:
Nigeria is currently on 35,000km capacity, with 90,000km, that'd expand the capacity to 125,000km of fiber optic cable capacity. 33million Nigerians lack access to connectivity and that's a huge number that has to be drastically reduced. We need more coverage access across every space of the country, in the creeks, and ungoverned deserts. It would eliminate slow connectivity and low signal strength. Businesses would spread across as much as there're coverage expansion into remote areas.