MTN Nigeria Spends N11.1 Billion on Fibre Repair, Hindering Network Expansion, GSMA Report Reveals

MTN Nigeria invested a substantial N11.1 billion over two years to repair and relocate 2,502km of fibre-optic cables, according to the latest GSMA Nigeria Digital Economy report. The report highlighted that this amount could have been used to lay an additional 870km of new fibre, had it been directed toward network expansion.

In 2022, the telecom giant spent N4.4 billion to fix 1,069km of damaged fibre, and another N6.7 billion in 2023 to repair 1,433km. The report attributes much of the damage to construction activities, roadworks, and acts of vandalism.

These maintenance costs continue to disrupt MTN’s efforts to expand its network, as the funds allocated for repairs are seen as diverting resources from extending coverage to underserved regions.

“Fibre networks in Nigeria are more costly to build and maintain than they should be,” the report noted, emphasizing the significant impact of such repairs on the telecom industry’s growth. GSMA’s Head of Sub-Saharan Africa, Angela Wamola, told The PUNCH that ongoing damage from vandalism and other causes has led to customer complaints about service availability.

Fibre-optic cables are essential for providing high-capacity connectivity, especially as Nigeria’s digital economy continues to grow. As of 2023, the country had laid 78,676km of fibre, with major urban areas like Lagos, Edo, FCT, Ogun, and Niger accounting for a significant portion.

The GSMA also outlined how telecom operators have adjusted their strategies to cope with the persistent issue of fibre cuts. These measures include building in additional protections and increasing maintenance budgets to safeguard infrastructure, though this has added to the overall cost of telecom services in the country.

In a move to reduce damage and financial strain on operators, the Nigerian government issued the ‘Designation and Protection of Critical National Information Infrastructure Order, 2024’ last August, making it illegal to intentionally damage telecom infrastructure. While the bill is still under review, it could provide legal protection for critical telecom assets like fibre cables and data centres.

Despite these efforts, industry experts warn that delays in policy implementation could slow broadband expansion, ultimately affecting businesses and consumers who rely on stable, high-speed internet connections.