In response to ongoing concerns raised by major telecommunications companies such as MTN Nigeria Communications Plc, Nigeria is taking steps to criminalize the destruction of broadband fiber cables.
Sources familiar with the situation indicate that the Works Ministry, tasked with supervising federal road constructors, is in the final stages of formulating regulations, as per a report by Bloomberg on Thursday.
While laws against vandalism already exist, authorities are aiming to enhance oversight of construction firms. The impending executive order is set to impose strict penalties on offenders, with specific details and the signing date yet to be disclosed.
Highlighting the importance of telecom assets as a crucial backbone supporting various sectors of the economy, senior presidential aide Temitope Ajayi mentioned the long-standing request for such classification by the Association of Telecommunications Companies.
“The new regulations will offer additional assurance that the Nigerian government will safeguard their investments from vandals and criminal elements,” Ajayi added.
The Nigerian Communications Commission projects that by the conclusion of 2027, the sector will contribute over a fifth of the country’s GDP, an increase from 13.5% recorded in the third quarter of last year.
This initiative aims to ease the burden on the telecoms sector, grappling with rising operational expenses and revenue challenges due to currency devaluation and a threefold surge in energy costs.
Documents reviewed by Bloomberg suggest that repairs and revenue losses stemming from damaged cables amounted to nearly N27bn ($23m) in the previous year alone. MTN Nigeria and Airtel Africa Plc bore the major brunt of these expenses.
MTN encountered over 6,000 fiber cable cuts last year, with a notable incident on February 28 resulting in service disruptions lasting more than five hours due to cuts by a road construction company, an oil service entity, and an individual burning refuse in a manhole at multiple sites.
To prevent further incidents, the operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, incurring costs exceeding N11bn — equivalent to establishing 870 kilometers of new fiber lines in unreached areas.
Anticipating a presidential decree on the subject, the head of the Association of Telecommunications Companies of Nigeria, Tony Izuagbe Emoekpere, expressed eagerness, citing the prevalent destruction of communication infrastructure and the potential positive impact such a measure would have on the industry and investment landscape.