Following today’s Federal Executive Council meetings, the federal government has secured two major approvals poised to significantly benefit Nigerians, with a particular focus on enhancing the digital startup ecosystem.
The first approval marks the launch of a Special Purpose Vehicle (SPV) dedicated to expanding Nigeria’s fibre optic network. This initiative will add an additional 90,000km of fibre optic cable, reinforcing the nation’s connectivity infrastructure and establishing a robust national backbone for universal internet access, announced the Minister For Information Technology And Digital Economy, Mr Bosun Tijani.
In recent months, extensive groundwork has been laid to establish this SPV, which will follow governance and operational models akin to successful Public-Private Partnerships in Nigeria, such as the Nigerian Inter-Bank Settlement System (NIBSS) and Nigeria LNG Limited (NLNG).
In collaboration with government and private sector stakeholders, the SPV will drive the expansion of Nigeria’s fibre optic network to at least 125,000km, up from the current 35,000km. This project will position Nigeria with the third-longest terrestrial fibre optic backbone in Africa, trailing only Egypt and South Africa.
The enhanced coverage will leverage Nigeria’s existing eight submarine cables, increasing data capacity utilization beyond the current 10%. This connectivity boost aligns with ongoing efforts by the Broadband Alliance and aims to bridge the digital divide by connecting over 200,000 educational, healthcare, and social institutions nationwide.
Key anticipated benefits include:
1. Increasing Internet Penetration: Raising internet penetration in Nigeria to over 70%.
2. Reducing Access Costs: Potentially lowering internet access costs by over 60%.
3. Expanding Digital Inclusion: Integrating at least 50% of the 33 million Nigerians currently without internet access.
4. Economic Growth: Contributing up to 1.5% GDP growth per capita, elevating GDP from $472.6 billion (2022) to $502 billion over the next four years.
These initiatives underscore the government’s commitment to fostering a digitally inclusive society and promoting economic growth through enhanced connectivity.