The Nigerian Communications Commission held its second stakeholders’ forum on a cost-based pricing framework for shared telecommunications ducts on Wednesday, July 8, in Abuja. The framework sits under the proposed Dig-Once Policy and is meant to let telecom operators share underground duct infrastructure instead of each digging their own trenches.

For businesses that depend on affordable internet access, from logistics startups to fintech platforms, the outcome of this process will eventually show up in what it costs to get fibre connectivity into new locations.

What the Dig-Once Policy Is Trying to Fix

The Dig-Once Policy would require telecommunications ducts to be installed whenever roads are built or rehabilitated. Once in place, multiple network operators could access the same ducts instead of each excavating the same stretch of road to lay their own cables.

The Commission’s Director of Policy, Competition and Economic Analysis, Ayuba Shuaibu, said the policy is intended to reduce the cost and complexity of network deployment through coordinated civil works and shared duct use. He noted that civil engineering work, digging, laying ducts, and restoring roads, remains one of the largest costs in broadband deployment today.

The policy itself is still in draft form. What the Commission is now trying to settle is the pricing mechanism that would let operators actually share ducts on fair terms once the policy is finalised.

What Was Discussed at the Forum

The Commission engaged Silicon Base Limited in 2023 to carry out a consultancy study on the pricing framework. At the July 8 forum, the second in the series, the consultant presented proposed cost-based pricing models built around three groups: the entities that install and own the ducts, the operators seeking access to them, and consumers who ultimately absorb the cost of deployment.

NCC’s Head of Competition and Tariff, Omotayo Mohammed, said the Commission had reached the stage where the consultant could present its findings and a proposed pricing methodology, and that the forum gave stakeholders a chance to review the assumptions behind the study before it is finalised.

Permanent Secretary at the Ministry of Communications, Innovation and Digital Economy, Nadungu Gagare, said the policy remains one of government’s strategic interventions for fibre infrastructure development, and that it should reduce broadband costs, cut down unnecessary road excavation, and support more efficient use of national resources.

Also speaking at the forum, Dimension Data Nigeria’s Akpevwe Egbelughe said construction of ducts, sub-ducts, conduits, manholes and poles typically makes up the largest share of broadband deployment spending, and called for a national registry of passive infrastructure so operators can see what duct capacity already exists before digging new trenches.

Where the Process Goes From Here

The framework is not final. The Commission is still collecting feedback from infrastructure owners, telecom operators, state governments and other stakeholders, and that input will shape the pricing methodology before it is published. No official date has been given for when the framework will be finalised.

Once it is, implementation will require coordination between the NCC, state governments, road authorities and telecom operators to make sure ducts are actually installed during road projects and that access pricing is applied consistently.

What This Means for Business

The direct effect of this framework, once finalised, falls mainly on telecom operators and infrastructure investors rather than on SMEs immediately. But the downstream effect matters for any business that depends on internet connectivity to operate.

Larger operators such as MTN and Airtel can generally absorb the cost of digging their own ducts. Smaller and regional operators, along with new entrants trying to serve Tier 2 and Tier 3 towns, are the ones most likely to benefit if shared duct access lowers their civil works bill, since that cost has been one of the main reasons broadband expansion into smaller towns and rural areas has been slow.

For SMEs in those underserved areas, cheaper duct access for operators could eventually translate into more competition among internet providers and, over time, better pricing or wider availability of broadband where it barely exists today. That said, this is not immediate. The policy is still in draft form and the pricing framework has not been finalised, so any change in what businesses actually pay for connectivity is likely at least a year or more away.

For state governments and road contractors, there is a more direct implication. If the Dig-Once Policy is formalised, road construction and rehabilitation contracts may need to build in duct installation as a standard requirement, which changes project scope and cost for firms bidding on public road works.

We could not confirm a specific timeline or specific cost-per-kilometre figures for duct access, since the Commission has not published those numbers. Any figures circulating publicly at this stage should be treated as unconfirmed until the NCC releases the final framework.