Nigerian telcos record N27bn loss from damaged fibre cables

Repairs and revenue losses from damaged cables are estimated to have cost Nigeria’s telecom industry almost N27bn ($23m) in 2023.

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show. On Feb. 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 fiber cables between 2022 and 2023, at a cost of more than N11bn —enough to build 870 kilometers of new fiber 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, 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 by the end of 2027, up from 13.5 per cent in the third quarter of last year.

The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, told The PUNCH in March that telecom infrastructure must be classified as a critical national asset.

He made this disclosure while speaking on the sidelines of the undersea cable cut that disrupted the Internet in West Africa.

Meanwhile, the Nigerian government is moving to criminalize the destruction of broadband fiber cables in response to ongoing grievances from major telecommunications companies.

Sources familiar with the situation said that the Works Ministry, responsible for overseeing federal road constructors, is in the final stages of drafting regulations.

These regulations are expected to be signed into law as an executive order by President Bola Tinubu.

Although laws against vandalism already exist, authorities are seeking to intensify scrutiny of construction firms. The forthcoming executive order will impose severe penalties on perpetrators, although specific details and the signing date remain 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 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. Punch