Nigeria’s digital economy is no longer shaped only in Abuja. Instead, the real competition now plays out across the 36 states, where infrastructure rules, especially Right-of-Way (RoW) policies, decide how fast broadband expands. As a result, state governments are increasingly influencing investment flows, fibre rollout speed, and digital growth more than federal directives.
At the center of this shift is fibre deployment. Telecom operators must pay RoW fees to lay fibre optic cables across public roads and infrastructure corridors. While this sounds administrative, it now directly determines where companies invest. Consequently, states with low or zero RoW charges are pulling ahead, while others risk falling behind in Nigeria’s $18.3 billion digital economy drive.
RoW policy has become the real infrastructure battleground 
Nigeria’s National Broadband Plan depends heavily on rapid fibre expansion across all regions. However, inconsistent RoW policies continue to slow progress. In some states, operators pay minimal or zero fees. In others, they face high charges combined with additional levies for permits, restoration, and environmental approvals.
Furthermore, this inconsistency creates uncertainty for investors. Telecom companies now factor state-by-state RoW conditions into deployment decisions before laying a single kilometre of fibre. As a result, infrastructure expansion no longer follows population demand alone; it follows regulatory ease.
Tech-friendly states are accelerating digital growth
Several states are actively positioning themselves as digital infrastructure hubs by reducing RoW barriers. For instance, Anambra, Kaduna, Katsina, and Kwara have adopted zero or near-zero RoW policies to attract fibre investment.
In addition, other states have aligned with the federal benchmark rate to create more predictable conditions for operators. This policy shift is not accidental. Instead, it reflects a growing understanding that broadband access drives fintech expansion, remote work adoption, SME growth, and increased internally generated revenue.
Therefore, these “tech-friendly” states are now competing directly for digital infrastructure capital, just as they would for manufacturing or oil investments.
Meanwhile, high-cost states are slowing down fibre expansion
On the other hand, several states still maintain high or inconsistent RoW charges. In these environments, operators often face multiple layers of fees beyond official tariffs. For example, additional costs may arise from local permits, road restoration demands, or administrative bottlenecks.
Consequently, fibre rollout becomes slower and more expensive. This particularly affects semi-urban and rural areas where return on investment is already low. As a result, Nigeria’s broadband map is becoming uneven, with strong connectivity in major commercial hubs but weaker coverage in many state capitals and rural communities.
RoW policy now drives economic competitiveness
Importantly, RoW is no longer just a telecom issue—it is an economic development tool. Fibre infrastructure supports everything from digital banking to online education and cloud services. Therefore, states that reduce deployment friction indirectly attract more businesses and technology investment.
Moreover, high infrastructure costs slow down digital inclusion. When broadband expansion delays, SMEs struggle to scale, fintech penetration weakens, and job creation in the digital sector slows. In contrast, states with supportive policies benefit from faster connectivity growth and stronger digital ecosystems.
Abuja still sets policy, but states control execution
Although the federal government, through agencies like the Nigerian Communications Commission (NCC), continues to push for harmonised RoW benchmarks, enforcement remains uneven. States still control land access, approvals, and local levies.
Therefore, even when national policy is clear, implementation depends on state-level cooperation. This gap explains why broadband expansion progress varies significantly across the country.
Nigeria’s digital economy is becoming a competitive federation
Increasingly, Nigeria is evolving into a system where states compete for digital infrastructure in the same way they compete for investment. In this new structure:
- Tech-friendly states attract faster fibre deployment
- High-cost states experience slower digital expansion
- Operators prioritise predictable regulatory environments
Furthermore, this competition is reshaping how the digital economy grows. Instead of a uniform national rollout, Nigeria now sees uneven but strategic development driven by local policy choices.
Conclusion: the real power shift is subnational
The Subnational Pivot shows a clear reality: Abuja may set the framework, but states now determine the speed of Nigeria’s digital future. As fibre becomes essential infrastructure, RoW policies have turned into economic signals that investors closely monitor.
Ultimately, Nigeria’s $18.3 billion digital ambition will not be decided by national announcements alone. Instead, it will be shaped by how quickly each state reduces barriers, welcomes fibre investment, and embraces the infrastructure that powers the modern economy.
