Nigeria is advancing legislation to classify the sabotage of broadband fiber cables as a criminal offense, addressing ongoing complaints from major telecom players like MTN Nigeria Communications Plc.
Insider sources reveal that the Works Ministry, tasked with supervising federal road construction, is in the final stages of formulating regulations, as reported by Bloomberg on Thursday.
These regulations are set to be authorized as an executive order by President Bola Tinubu, notwithstanding the current laws against vandalism; authorities are ramping up efforts to scrutinize construction firms.
The impending executive order will levy harsh consequences on wrongdoers, though the exact specifics and signing date are undisclosed.
“Telecom assets are a critical backbone that supports the economy across sectors,” said a senior presidential aide, Temitope Ajayi, who noted that the Association of Telecommunications Companies has been demanding the classification for years.
“New rules will provide further assurance that the Nigerian government will protect their investments against vandals and criminal elements.”
The Nigerian Communications Commission estimates that the sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5 per cent in the third quarter of last year.
The move will help alleviate pressure on the telecoms sector, which is facing increased operating costs and sales pressures from a sharp depreciation in the currency and a threefold increase in energy prices.
Read also: Undersea Cable Cut: Cables Not Expired, Contrary To Rumors
The telecom industry reportedly incurred losses nearing N27 billion ($23 million) last year due to cable damages, encompassing both repair costs and revenue reductions, according to documents obtained by Bloomberg. MTN Nigeria and Airtel Africa Plc bore the brunt of these financial burdens, as outlined in the documents.
..
Documents indicate that MTN encountered over 6,000 instances of fiber cable cuts last year. On February 28th, disruptions caused by cuts at three different locations, attributed to a road construction firm, an oil servicing company, and an individual burning rubbish in a manhole, led to customers enduring over five hours of data and voice outages.
Between 2022 and 2023, the operator invested in relocating 2,500 kilometers (1,553 miles) of vulnerable fiber cables, with expenses surpassing N11 billion. This expenditure could have been utilized to construct 870 kilometers of new fiber lines in regions lacking coverage.
Tony Izuagbe Emoekpere, the head of the Association of Telecommunications Companies of Nigeria, expressed a favorable stance towards a presidential order on the matter, stating that it would be welcomed.
“When it comes to communication infrastructure, they are destroyed at will, so we are eagerly awaiting the president’s order,” he said. “It would be a great boost to the industry, and it will also encourage investment.”