Federal Government Greenlights Special Purpose Vehicle to Expand Internet Access Across Nigeria
In a significant move towards bridging the digital divide and fostering economic growth, the Federal Government announced on Tuesday the approval of a special purpose vehicle (SPV) dedicated to overseeing the deployment of an additional 90,000 kilometers of fiber optic cable infrastructure nationwide, aimed at achieving universal internet access across Nigeria.
Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, outlined the transformative potential of the project, emphasizing its role in bolstering the national internet backbone infrastructure and maximizing the utilization of the eight submarine cables already operational in Nigeria. The expansion initiative is poised to elevate Nigeria’s terrestrial fiber optic backbone to approximately 125,000 kilometers, positioning it as the third-largest in Africa, behind South Africa and Egypt.
Tijani underscored the strategic significance of the SPV, highlighting its mandate to manage the project’s implementation, financing, and operations. Drawing parallels to successful public-private partnership models such as the Nigerian Inter-Bank Settlement System (NIBSS) and Nigeria LNG Limited (NLNG), the minister expressed confidence in the SPV’s capacity to drive efficiency and accountability in governance and operations.
“This ambitious endeavor will not only optimize the utilization of our existing submarine cable infrastructure but also pave the way for expanded connectivity to over 200,000 educational, healthcare, and social institutions across Nigeria,” Tijani remarked. “By addressing the current digital divide, we aim to ensure that a larger segment of our population can reap the benefits of internet connectivity.”
Highlighting the economic implications of the project, Tijani projected a significant boost to Nigeria’s gross domestic product (GDP), with estimated growth of up to 1.5 percent per capita. The initiative is expected to elevate Nigeria’s GDP from $472.6 billion in 2022 to $502 billion over the next four years, underscoring the pivotal role of digital infrastructure in driving economic development and competitiveness.
The announcement comes in the wake of a report by the Groupe Spécial Mobile Association (GSMA), revealing that a staggering 71 percent of Nigerians lack regular access to mobile internet. The report emphasizes the imperative of policy interventions to enhance infrastructure deployment and expand internet coverage, projecting that Nigeria could potentially add 15 million internet users by 2028 with the right policy frameworks in place.
“As we chart the course towards a digital future, universal access to digital connectivity emerges as a prerequisite for unlocking Nigeria’s full economic potential,” the report stated. “However, realizing this vision entails overcoming challenges in infrastructure deployment and creating an enabling policy environment conducive to industry growth and innovation.”
With the approval of the SPV and the ambitious expansion of fiber optic infrastructure, the Federal Government signals its commitment to advancing digital inclusion and fostering a thriving digital economy that benefits all Nigerians.
