Kendall Ananyi, Chief Executive Officer and co-founder of Tizeti, a leading fixed wireless broadband provider, has raised alarm over the stark disparities in internet capacity costs between Lagos and other regions in Nigeria, citing it as a major hurdle in expanding broadband access to rural and underserved communities.
In an interview with CNBC, Ananyi stated that the cost of backhaul infrastructure outside of Lagos could be as much as 30 times higher than within the commercial capital. This, he said, poses a severe challenge for Internet Service Providers (ISPs) trying to offer equitable pricing across the country.
“Affordability and access to backhaul, specifically cheap backhaul, are our biggest concerns,” he said. “Capacity costs in Lagos compared to areas outside Lagos can be 20 to 30 times higher, yet we’re expected to maintain similar pricing for customers in both regions.”
Backhaul infrastructure refers to the intermediate links that connect the core network to smaller subnetworks, such as those serving homes and businesses. Ananyi argued that the disproportionately high costs of deploying this infrastructure outside major cities like Lagos, Abuja, and Port Harcourt is discouraging expansion into more remote areas.
The high cost of infrastructure deployment in rural Nigeria is further exacerbated by low average revenue per user, driven by limited household incomes, making it difficult for ISPs to recoup their investments.
A recent Ericsson Mobility Report echoed this concern, noting that “the cost implications of deploying and maintaining infrastructure in these areas often outweigh the potential revenue generation, presenting a formidable financial obstacle to delivering widespread coverage.”
Power supply challenges also pose operational risks. Many rural communities experience frequent blackouts or lack electricity entirely, forcing network operators to rely on diesel generators, which significantly increases operating expenses.
“Laying fibre or setting up cell towers in remote areas is expensive, with limited short-term returns,” telecom analyst Olalekan Alimi wrote in a LinkedIn post. “Rural areas face electricity shortages, making network maintenance difficult. Telecom companies see lower spending power in rural communities as a financial risk. Bureaucracy and unclear policies also slow down rural expansion initiatives.”
Founder of Jidaw Systems Limited, Jide Awe, also highlighted the need for simplified licensing processes and strategic government investment in digital infrastructure to spur broader rural coverage.
Despite these challenges, Tizeti has continued to expand its reach. The company has moved into more than ten additional states in the last two years and now operates in around 15 states across Nigeria, including Ogun, Benin, and Oyo.
Ananyi expressed optimism about ongoing infrastructure projects that, once completed, could drive down operational costs. “While backhaul remains expensive, we’re optimistic that infrastructure projects currently in the pipeline will come online soon. Once those investments materialise, operational costs should decline, paving the way for more affordable backhaul options. This, in turn, will enable us to lower prices for customers in underserved areas and improve access to our services,” he said.
Founded in January 2017, Tizeti provides unlimited high-speed internet services to residential and small business users in Nigeria and Ghana under the brands Wifi.com.ng and GhanaWifi.com. The company is also expanding into Francophone West Africa, including Côte d’Ivoire.
