The Nigerian Communications Commission (NCC), in collaboration with key industry stakeholders, has begun developing a cost-based pricing framework aimed at ending the repeated excavation of roads for fibre-optic installations under the Federal Government’s Dig Once policy.
The initiative was presented during the Second Stakeholders’ Forum on the Consultancy Study for the Development of a Pricing Mechanism and Cost-Based Structure for Sharing Ducts held in Abuja. It is designed to reduce broadband deployment costs, encourage infrastructure sharing among telecom operators, and speed up the expansion of fibre networks across Nigeria.
The Dig Once policy requires telecommunications ducts to be installed during the construction or rehabilitation of roads, allowing multiple service providers to use existing underground infrastructure instead of digging up roads repeatedly.
Speaking at the event, Permanent Secretary of the Federal Ministry of Communications, Innovation and Digital Economy, Nadungu Gagare, described the policy as a key government strategy for expanding digital infrastructure, lowering broadband rollout costs, protecting public roads from unnecessary excavation, and ensuring more efficient use of public resources.
He explained that achieving the policy’s objectives depends on introducing a transparent, fair, and commercially sustainable pricing system that promotes infrastructure sharing while boosting investor confidence and protecting public interests.
The NCC’s Director of Policy, Competition and Economic Analysis, Ayuba Shuaibu, said the commission engaged consultants in 2023 to develop the pricing model after identifying the absence of a structured cost mechanism as a major weakness in the draft Dig Once policy.
According to him, the proposed framework is expected to provide equitable access to shared underground ducts, encourage investment, and support sustainable infrastructure development. He noted that stakeholders are currently reviewing the consultants’ recommendations before the pricing structure is finalised.
The commission reaffirmed its commitment to an open and consultative process that balances the interests of infrastructure owners, telecom operators seeking access, and consumers while promoting continued investment in broadband infrastructure.
Industry experts also stressed the importance of reducing repeated civil engineering works, noting that installing telecommunications ducts during road construction would significantly lower deployment costs, shorten project timelines, reduce traffic disruptions, minimise environmental damage, and improve broadband penetration nationwide.
They further recommended establishing a National Passive Infrastructure Registry to provide information on available ducts, spare capacity, and ownership, alongside a digital platform that would simplify the leasing and management of duct infrastructure.
Stakeholders also highlighted the need for stronger collaboration between the Federal Government and state governments, particularly in harmonising Right of Way policies, which they described as essential to the successful implementation of the Dig Once initiative.
Officials from Cross River and Oyo states welcomed the proposed pricing framework, saying it would help reduce disputes over infrastructure sharing while ensuring maintenance costs remain sustainable without discouraging investment or access.
The NCC said the consultation process is expected to produce a fair pricing framework that promotes equitable access to underground telecom infrastructure, limits unnecessary road excavation, attracts long-term investment, and accelerates broadband expansion across the country.
