Repairs and revenue losses from damaged cables are estimated to have cost Nigeria’s telecom industry almost N27 billion ($23 million) in 2023, according to documents obtained by Bloomberg.
According to the report, MTN Nigeria and Airtel Africa Plc bore the brunt of the costs. MTN suffered more than 6,000 cuts on its fibre cable last year.
On February 28, a cut in its network in three different locations by a road construction firm, an oil serving company and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.
The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fibre cables between 2022 and 2023 at a cost of more than N11 billion, enough to build 870 kilometers of new fibre lines in areas without coverage.
Broadband fibre optic cables form the backbone of modern communication infrastructure, enabling the high-speed data transmission that underpins a wide range of personal, business and societal activities.
On several occasions, the Nigerian Communications Commission (NCC), the industry regulator, has acknowledged this challenge and expressed willingness to work on measures to address it.
These measures include stricter regulations to deter vandalism and improved collaboration between telcos and government agencies responsible for construction activities.
According to the NCC, the telecom sector will make up more than a fifth of the country’s gross domestic product (GDP) by the end of 2027, up from 13.5 percent in the third quarter of last year.
