The Nigerian Communications Commission (NCC) has officially commenced consultations with industry stakeholders. The objective is to establish a fair, transparent, and cost-based pricing framework for sharing underground telecommunications ducts. This initiative is a vital component of the Federal Government’s "Dig-Once" policy, a strategic framework designed to eliminate the perennial issue of repeated road excavations and streamline the rollout of fibre-optic infrastructure across the country.

The Problem: A Cycle of Destruction and Inefficiency

For years, the expansion of broadband in Nigeria has been hampered by a disjointed approach to infrastructure deployment. Telecommunications operators, driven by the need to expand their networks, have historically been forced to dig up freshly constructed roads to lay their fibre-optic cables. This "dig-and-destroy" cycle has resulted in astronomical deployment costs, significant damage to public infrastructure, and unnecessary public inconvenience.

Furthermore, the lack of a unified coordination mechanism has led to redundant civil engineering works. Multiple operators often excavate the same street at different times to lay their individual cables, leading to excessive waste of resources. The "Dig-Once" policy seeks to fundamentally alter this narrative by mandating that telecommunications ducts are installed simultaneously whenever roads are constructed or rehabilitated. By utilizing existing underground infrastructure, operators can "plug and play," thereby saving costs and protecting the environment.

The "Dig-Once" Vision: Collaboration Over Competition

The initiative was unveiled during the Second Stakeholders’ Forum on the Consultancy Study for the Development of a Pricing Mechanism and Cost-Based Structure for Sharing Ducts in Abuja. Addressing the forum, Nadungu Gagare, the Permanent Secretary of the Federal Ministry of Communications, Innovation and Digital Economy, emphasized that the policy is a cornerstone of the government’s digital infrastructure agenda.

"The Dig Once Policy remains one of the Federal Government’s strategic interventions for accelerating fibre infrastructure development, reducing the cost of broadband expansion, preventing unnecessary road excavation, and promoting efficient use of national resources," Gagare noted. He underscored that the policy’s full potential remains locked away without a transparent, commercially viable, and equitable pricing framework. The goal is to move the industry away from duplication and toward collaboration, fostering sustainable growth that prioritizes efficiency over short-term competitive gains.

Bridging the Regulatory Gap

The journey to this consultative stage began in 2023, when the NCC engaged consultants to investigate the pricing mechanisms required to make the Dig-Once policy functional. According to Ayuba Shuaibu, the Director of Policy, Competition and Economic Analysis at the NCC, the absence of a defined pricing structure was a "major gap" that prevented the policy from achieving its intended efficiency.

Shuaibu highlighted that without a clear pricing framework, neither infrastructure providers nor access seekers can operate with certainty. "Our objective is to arrive at a pricing structure that balances the interests of infrastructure providers, access seekers, and ultimately the consumers, while also encouraging continued investment in broadband infrastructure," he explained. The framework currently under review aims to ensure that those who invest in building the ducts receive a fair return on investment, while those who seek to use them (access seekers) are not burdened by prohibitive costs.

Insights from the Private Sector

Industry experts have lauded the move as transformational. During the keynote address, Akpevwe Egbelughe, representing Dimension Data Nigeria, described the Dig-Once principle as a simple but potent solution to a systemic problem. By embedding appropriately sized conduit infrastructure during the construction phase of a road, Nigeria can effectively "future-proof" its digital highways.

This approach not only reduces the operational expenditure for telecom operators but also eases the fiscal burden on the state, as road maintenance costs are significantly lowered when the constant cycle of excavation and re-filling is curtailed. The collaborative effort between the Ministry, the NCC, and private firms reflects a growing recognition that digital infrastructure is as essential to national development as power, water, and transport.

Looking Ahead: Enhancing Investor Confidence

A critical outcome of this pricing framework will be the strengthening of investor confidence. In an industry defined by high capital expenditure (CAPEX), clarity in regulatory and pricing structures is a major draw for both local and foreign direct investment. By formalizing the cost-sharing structure, the Nigerian government is creating a more predictable environment for infrastructure investment.

The NCC has committed to a transparent and inclusive process, inviting feedback from all relevant stakeholders before the pricing methodology is finalized and implemented. This consultative approach is expected to result in a framework that is not only mathematically sound but also practically implementable across different geopolitical zones, considering the varying costs of civil works.

The Path to Nationwide Broadband

As Nigeria works toward its broadband penetration targets, the standardisation of the Dig-Once policy will play a pivotal role. The move toward a cost-based pricing structure is an essential step in ensuring that Nigeria’s digital economy remains competitive, sustainable, and inclusive. By transforming how cables are laid beneath our roads, the nation is laying the foundation for a more connected future—one where digital access is a shared reality rather than a logistical hurdle.

For the Nigerian consumer, the ultimate promise is improved service quality and potentially lower costs of data as the high expenses of network deployment are mitigated. As the NCC and its stakeholders move to finalize the framework, the nation stands on the threshold of a significant infrastructural milestone—one that promises to turn every road construction project into an opportunity to fuel Nigeria’s digital growth.

Key Objectives of the Proposed Framework

  • Infrastructure Sharing: Encouraging multiple operators to utilize the same conduit, thereby reducing the number of excavations.

  • Cost Efficiency: Significantly lowering the CAPEX required for fibre deployment.

  • Asset Protection: Extending the lifespan of Nigeria’s road network by reducing the frequency of damage caused by digging.

  • Market Fairness: Establishing a transparent and equitable pricing model that encourages participation from both large and small-scale operators.