Rural Connectivity: Firm Seeks Single-digit Loans, Local Technology

ICT company, ipNX, has called for long-term, single-digit interest rate financing, increased investment in indigenous technology and affordable digital devices to accelerate rural connectivity and bring millions of underserved Nigerians into the digital economy.

The company said access to affordable financing, supportive government policies and locally developed technology solutions would be critical to expanding telecommunications infrastructure and connecting the next 25 million Nigerians, particularly those living in commercially underserved and remote communities.

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The call was made by the Director, Strategic Business Initiatives at ipNX Nigeria, Dr. Olusola Teniola, during a panel discussion at the second edition of the Rural Connectivity Summit 2.0, held in Lagos under the theme, “Rural Inclusion at Scale: Connecting the Next 25 Million Users for Frontier Market Growth.”

Speaking during a session titled, “From Infrastructure to Access: Building the Fibre, Towers and Technology Ecosystem for Rural Connectivity,” Teniola stressed the need for accessible, long-term financing to support indigenous telecommunications companies and infrastructure operators with the capacity to extend connectivity to underserved communities.

He argued that high borrowing costs and the absence of affordable long-term financing could undermine efforts to expand network infrastructure, particularly in locations where commercial returns on investment are relatively low.

“The argument is that, over the next 10 years, we need to have long-term, single-digit, naira-based financing that supports companies that have demonstrated the ability to connect the last mile in very challenging environments,” Teniola said.

He noted that while satellite technology provides opportunities to extend network coverage to remote locations, it should complement rather than replace terrestrial telecommunications infrastructure.

According to him, decisions on connectivity deployment must be guided by the economics of service delivery, particularly in rural communities where low household purchasing power could make internet access unaffordable.

Teniola also called for deliberate government policies to encourage local technology development and reduce Nigeria’s dependence on imported devices, particularly smartphones, which remain essential to meaningful digital inclusion.

He questioned the sustainability of relying largely on expensive imported smartphones to drive internet adoption among low-income rural populations, stressing that indigenous manufacturers and innovators should be supported to develop affordable devices and solutions suited to local needs.

“If we don’t pursue the right policies, then we’re going to import. We are very talented people, speaking different dialects, and we need to incentivise people who have African solutions and are building for Africa. India has done that, and if they can, we can as well,” he said.

Also speaking, the President of the Association of Telecommunications Companies of Nigeria (ATCON), Tony Emoekpere, identified the high cost of powering and maintaining telecommunications infrastructure in rural communities as a major obstacle to expanding connectivity.

He said operators face significant operational challenges in sustaining network infrastructure in remote locations, particularly due to unreliable power supply, dependence on diesel, insecurity and difficulties accessing some communities.

“The real issue is power. No rural connectivity site can be sustained on diesel alone. We need to explore hybrid solutions, although this is still a challenge. Theft and security remain major concerns, as does the difficulty of accessing remote locations,” Emoekpere said.

He stressed that addressing these challenges would require investment in alternative and sustainable power solutions, alongside improved security and infrastructure support to reduce the operational costs of rural telecommunications services.

The summit also highlighted the importance of ensuring that infrastructure deployment translates into meaningful digital access and economic opportunities for rural communities.

The General Manager (Technical) of ICSL, Tinuade Oguntuyi, said digital education and community inclusion must complement the expansion of telecommunications infrastructure.

She noted that improved connectivity could create opportunities for rural residents to access digital services, conduct business and participate more actively in the wider economy, while making underserved communities more attractive places to live and work.

The discussions underscored that achieving widespread rural connectivity in Nigeria would require more than deploying fibre-optic cables, telecommunications towers and satellite infrastructure.

Industry stakeholders emphasised the need for commercially viable financing models, sustainable power supply, affordable access devices, supportive government policies and digital literacy programmes to ensure that rural communities can benefit from expanded network coverage.

As Nigeria pursues the target of connecting an additional 25 million users, ipNX called for stronger collaboration among government agencies, regulators, telecommunications operators, infrastructure providers and technology companies to address the financial, technological and operational barriers limiting rural connectivity.

The company maintained that sustainable investment, innovation and coordinated industry efforts would be essential to extending reliable telecommunications services to underserved communities and expanding their participation in Nigeria’s digital economy.