The Nigerian Federal Government is embarking on a transformative digital infrastructure project aimed at deploying 90,000 kilometers of fiber-optic cable across the country. This ambitious initiative, set to begin within the next six months, is designed to significantly enhance Nigeria’s national connectivity backbone by increasing the current network from 35,000 kilometers to a robust 125,000 kilometers.

The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, announced the Federal Government’s plan, highlighting the progress made under his leadership over the past year.

The deployment of the fiber-optic network is expected to start between now and February 2025.

Through the project, the government aims to improve internet connectivity by expanding the country’s digital infrastructure, ensuring more Nigerians have access to reliable and affordable internet services, and ultimately stimulating economic growth.

However, this expansion represents more than a move to improve telecom services. Many believe it represents a strategic move to make the Nigerian market more competitive especially as international tech giants like SpaceX’s Starlink expand their presence in the country.

The global tech company SpaceX, through its satellite internet service, Starlink, is rapidly expanding its footprint in Nigeria by establishing ground stations across the country. Starlink’s entry into the Nigerian market has introduced a new level of competition, particularly for local internet service providers (ISPs), who now face the challenge of competing with Starlink’s high-speed, low-latency internet offerings.

Funding and Partnership Model

To finance this large-scale project, the Nigerian government is working with international funding partners, including the World Bank. Dr. Tijani revealed that the Federal Executive Council (FEC) has approved a Special Purpose Vehicle (SPV) to manage the project’s delivery. This SPV, modeled after successful Public-Private Partnerships (PPPs) like the Nigeria Inter-Bank Settlement System (NIBSS) and Nigeria LNG Limited (NLNG), is expected to help in securing the necessary funds and ensuring the effective deployment of the fiber-optic network.

“The Federal Executive Council (FEC) FEC has approved the SPV that will deliver on this project, and our development funding partners are currently finalizing the SPV structure to ensure the aggregation of funding required for the effective deployment of the fiber-optic network.

“Our target is for this deployment to start within the next six months,” Dr. Tijani stated, noting that the project is critical for creating a more vibrant digital ecosystem.

“By connecting more communities across the country, we will ensure that many more of our citizens can connect to the benefits of the digital economy,” he added.

Impact on the Nigerian Internet Market

The deployment of the fiber-optic network is particularly necessary for the survival of local ISPs, which have served as Nigeria’s economy’s backbone, especially in the face of increasing pressure from Starlink’s aggressive expansion.

Starlink’s satellite internet service, known for its high speed and global reach, has already started making inroads into underserved and remote areas of Nigeria. While Starlink’s presence is a boon for consumers, offering them more choices and better service, it presents a formidable challenge for local ISPs who rely on ground-based infrastructure.

Local ISPs need large-scale fiber-optic infrastructure to remain competitive in this new landscape. Without such infrastructure, they may struggle to offer the same level of service as Starlink, potentially leading to a loss of market share. Thus, many believe that the government’s fiber-optic deployment plan, therefore, is not just about improving national connectivity but also about empowering local ISPs to compete effectively against global giants.

Economic and Social Benefits

The project is also expected to have far-reaching economic and social benefits. The government aims to raise internet penetration to over 70% and reduce the cost of internet access by more than 60% by increasing the country’s fiber-optic coverage. This would bring more than half of the 33 million Nigerians currently without internet access into the digital economy, fostering greater inclusion and participation.

Moreover, the project is projected to contribute up to 1.5% growth in GDP per capita, potentially raising Nigeria’s GDP from $472.6 billion in 2022 to approximately $502 billion within the next four years. By connecting more communities, especially in rural and underserved areas, the project will unlock new economic opportunities, drive innovation, and improve the quality of life for millions of Nigerians.

The Challenge of Right of Way

Despite the potential benefits, the project faces significant challenges, particularly concerning the issue of Right of Way (RoW). RoW regulations, which differ across Nigeria’s 36 states, have historically slowed down infrastructure development due to high costs and bureaucratic delays imposed by state governments.

Telecom industry experts have said that for the fiber-optic deployment to succeed, the Federal Government will need to secure the cooperation of state governments and streamline RoW processes. They warned that without addressing these challenges, the project could face significant delays, undermining its potential impact.

The escalating legal confrontation between Nigeria and Zhongshan Fucheng Industrial Investment Ltd, a Chinese firm, has turned a new leaf, as Zhongshan confiscates another luxury jet owned by Nigeria in Canada. This move is part of a broader campaign by Zhongshan to recover assets as compensation for an unresolved arbitration award.

The dispute, which stems from a failed investment deal, has seen Nigeria’s assets being seized across multiple countries, with the potential for further losses looming on the horizon.

Background of the Dispute

The conflict between Nigeria and Zhongshan Fucheng Industrial Investment Ltd originates from a botched free trade zone contract in Ogun State. The Chinese company had entered into an agreement with the Nigerian government to develop the Ogun-Guangdong Free Trade Zone, a project that promised significant economic benefits for both parties.

However, the deal soured over time, with both sides accusing each other of contractual breaches.

Zhongshan, feeling aggrieved by what it perceived as Nigeria’s failure to honor its commitments, took the matter to international arbitration. The arbitration panel ruled in favor of Zhongshan, awarding the company over $70 million in damages. But Nigeria has consistently contested the outcome, claiming no wrongdoing and challenging the enforcement of the arbitration award in courts across various jurisdictions.

Seizure of Nigerian Assets

Zhongshan’s efforts to recover its awarded compensation have led to a series of legal actions resulting in the seizure of Nigerian assets across the globe. These seizures have been strategically executed in countries where Nigeria holds valuable properties or interests, allowing Zhongshan to recoup its losses in lieu of the unpaid arbitration award.

United Kingdom: Zhongshan successfully seized guest houses belonging to the Nigerian government. These properties, used primarily for diplomatic purposes, were among the first to be confiscated as part of the enforcement of the arbitration award.

France: In a similar vein, assets related to Nigeria’s diplomatic missions in France were targeted. Nigerian presidential aircraft were seized, including the newly purchased jet which was later released by the firm as a sign of “goodwill.”

Canada: The most recent and high-profile seizure involved the luxury jet, a Bombardier 6000 type BD-700-1A10, which was once owned by former Nigerian oil minister Dan Etete. The jet, which was purchased for $57 million from the proceeds of the controversial OPL 245 oil field sale, had been under Nigeria’s custody since 2016. However, following a court ruling in March 2024, Zhongshan took control of the aircraft, marking a significant victory in its asset recovery campaign.

The aircraft, with tail number M-MYNA and serial number 9471, was part of the luxurious assets amassed by Dan Etete during his tenure as oil minister. After Nigeria seized the jet from Etete in Dubai, it was flown to Canada in 2020, where it remained under Nigerian control until Zhongshan’s recent legal victory.

Judge David Collier of the Superior Court of Quebec ruled against Nigeria, dismissing the country’s sovereign immunity claims and rejecting its argument that it could not respond to the lawsuit due to the general elections. Nigeria in its defense, told the court that it was unable to respond to the suit early enough due to its 2023 general elections.

The judge’s decision paved the way for Zhongshan to take possession of the jet, further eroding Nigeria’s international assets.

Potential Future Seizures

Zhongshan Fucheng Industrial Investment Ltd has made it clear that it will continue to pursue Nigeria’s assets until the full amount of the arbitration award is recovered. With over $70 million still outstanding, the Chinese firm is expected to target additional Nigerian properties and assets in other countries.

There are credible reports that Zhongshan is eyeing Nigerian assets in Belgium and the United States, where the country maintains valuable properties, including diplomatic buildings, bank accounts, and potentially more aircraft. The legal framework in these countries, particularly concerning international arbitration awards, could allow Zhongshan to successfully execute further seizures.

The ongoing rivalry between Nigerians and South Africans has evolved into a high-tech conflict, with the latest chapter unfolding on social media and within the ride-hailing industry. This new skirmish, involving coordinated actions by individuals in both countries to disrupt ride-hailing services, particularly Bolt, has exposed the flaw of inter-country ride-hailing requests.

The latest twist in the Nigeria-South Africa rivalry emerged on X (formerly Twitter), where reports surfaced that South Africans were intentionally ordering and then canceling rides in Nigeria through Bolt.

These actions were reportedly aimed at frustrating Nigerian drivers and inflicting financial harm. A viral video allegedly shows a South African man mocking a Nigerian Bolt driver, Kotoro-Ola, after canceling a ride, exemplifying the malicious intent behind these actions. Numerous screenshots shared online show similar instances, where South Africans placed ride requests in Nigeria with the sole purpose of canceling them to cause stress and economic loss to the drivers.

Nigerians Counterattack

Nigerians, not to be outdone, responded by launching a coordinated campaign to disrupt Bolt services in South African cities like Cape Town and Johannesburg. This retaliatory action led to a significant surge in ride requests, causing a shortage of available rides and driving up prices, leaving many South Africans stranded.

A widely circulated video on X depicted over 40 Bolt drivers converging on a single street in Johannesburg, all responding to what turned out to be a coordinated hoax by Nigerians, further exacerbating the chaos. This eventually forced many drivers to turn off their apps.

Rivalry Intensified by Miss South Africa Controversy

The ride-hailing skirmish comes on the heels of another contentious issue between the two nations—the withdrawal of Chidimma Adetshina, who is of Nigerian descent, from the Miss South Africa pageant. South African-born Miss Adetshina, a 23-year-old law student living in Soweto, withdrew from the competition amid a storm of criticism regarding her nationality.

The situation escalated when South Africa’s Home Affairs Department began investigating claims that Miss Adetshina’s mother might have committed “identity theft” to secure South African citizenship. Faced with growing hostility and concerns for her safety, Adetshina chose to withdraw from the pageant, citing the need to protect herself and her family.

Bolt’s Response to the Crisis

In response to the unfolding chaos, Bolt swiftly implemented several measures to prevent further misuse of its platform. The company released a statement acknowledging the recent incidents and outlining the steps it has taken to safeguard its operations.

“Bolt is aware of the recent fake ride requests between individuals in Nigeria and South Africa. We’ve swiftly implemented measures to resolve the issue, including restricting inter-country ride requests, and have blocked those responsible from the Bolt app,” the company stated.

Bolt’s actions, including suspending accounts and restricting inter-country ride requests, have had an immediate impact on its operations.

The Flaw in Inter-Country Ride Requests

While this incident highlights the effects of unemployment, as both Nigeria and South Africa have 33.3% and 32.9% unemployment rates respectively, it points to the flaw in inter-country ride requests.

The ease with which individuals in South Africa were able to disrupt Bolt services in Nigeria, and vice versa, points to a potential vulnerability in the ride-hailing platform’s design. Many have noted that Bolt’s technology did not adequately anticipate or prevent such abuse, leaving the platform open to manipulation by those with malicious intent. Inter-country ride requests, while convenient for users who travel internationally, can be exploited to create chaos across borders, as this incident has demonstrated.

Against this backdrop, the Bolt episode is seen as more than just a story of petty rivalry, with many pointing to it as a reflection of the broader challenges that come with operating in a hyper-connected world.

Critics argue that the ability of users in one country to impact the availability and pricing of rides in another suggests a need for more robust safeguards within the platform’s architecture.