Nigerians are ultimately bearing the cost of frequent fibre cuts through disrupted digital transactions and services. Energy expert and entrepreneur, Dare Osamo, made this observation while speaking on Channels Television’s Business Morning. He noted that over 5,000 fibre-cut incidents were reported in the first six months of the year, translating to roughly over 10,000 incidents annually, with an estimated economic cost of about N70 billion. This situation is a “massive and endemic issue” for Nigeria, according to Osamo.
The impact of a fibre cut is often felt beyond the immediate loss of connectivity. Disruptions can knock out or degrade voice, data, SMS, and USSD services, affecting POS transactions, mobile banking, businesses, and other digital services. The Nigerian Communications Commission (NCC) has documented major fibre-cut outages affecting multiple states and services, underscoring the dependence of everyday economic activity on the underlying network infrastructure.
The immediate financial burden of restoring damaged infrastructure generally falls on network operators, but ordinary Nigerians ultimately feel the wider economic consequences. Osamo explained that while operators may seek compensation from those responsible for damaging their infrastructure, they must first restore the network before pursuing such claims. He added that most of the costs are currently being borne by telecom companies.
According to Osamo, road construction is the biggest source of fibre damage, responsible for almost 90 per cent of fibre cuts. He explained that telecommunications infrastructure and road networks frequently occupy the same corridors, and construction and modification of road networks can inadvertently damage fibre cables buried along the same corridors. This creates service disruptions that can affect entire communities.
The problem is compounded by the fact that some roads were constructed decades before much of the present telecommunications infrastructure was deployed. Osamo noted that the current mapping is not sufficient to detect some of this infrastructure. However, mechanisms exist for major construction projects to determine whether fibre cables are buried within their work corridors, requiring construction companies to make necessary enquiries from telecom operators before commencing work.
Osamo called for greater coordination between road contractors, telecom operators, government agencies, and other stakeholders to minimise damage. He emphasized the need for “massive education” of communities and stakeholders, including telecom operators, construction companies, host communities, artisans, vendors, and the general public. Fibre infrastructure should no longer be viewed simply as the property of telecommunications companies, given the extent to which banking, commerce, and other everyday activities now depend on connectivity.
The NCC has warned that fibre-optic networks have become critical infrastructure underpinning banking, government services, education, healthcare, commerce, and emergency communications. Damage to the infrastructure can result in failed calls, stalled payments, interrupted services, and wider economic costs. For consumers and businesses in affected areas, the cost of a fibre cut is not limited to the cable that has to be repaired; it can also be measured in failed transactions, interrupted services, and lost business opportunities while connectivity remains down.
Key points
- Over 5,000 fibre-cut incidents were reported in the first six months of the year.
- Road construction is responsible for almost 90 per cent of fibre cuts.
- The estimated economic cost of fibre cuts is about N70 billion annually.
