India to lend $100m loan to Nigeria to boost nationwide broadband connectivity

The Nigerian government has declared that it working with the Indian Government to access USD 100 million concessional loans to develop Nigeria's rural broadband connectivity. The Minister of Communications, Adebayo Shittu, said at the Indian Technical and Economic Cooperation (ITEC) Day held in Abuja on Thursday, January 17.

According to Shittu, the loan to be accessed would be part of India's USD 10 billion concessional loans to African countries for the implementation of projects of their national priority. The rural broadband connectivity in India "inspired" his application for the USD 100 million loans for the project.

"Nigeria must be prepared to take advantage of the available opportunities, one of which is in securing of the credit line for the development of rural backbone infrastructure. In India, as expansive as the country is, every area has sufficient broadband connectivity; everybody has access to online connectivity. This is the opposite in Nigeria. We have barely exceeded the 30 per cent connectivity rate," Shittu said.

"With this initiative, I believe within the next two months, we will have the opportunity of getting a credit line of USD 100 million from India to develop rural infrastructure, such that without electricity, telecoms masts can function, as masts to be constructed via the credit line funding will be renewable based – that is solar-based," he said.

According to him, Indian companies would be the installers of the equipment "because it is their technology that we will use the credit line to acquire". He also noted that the timeline for the implementation of the project was yet to be determined.

On the other hand, he also said that the return of the loan would be 'ironed out' by the Ministry of Finance and the Ministry of Budget and National Planning. Indian High Commissioner to Nigeria, Abhay Thakur said to the media that the High Commission had received a written project report from Nigeria and would examine it.

"We (Nigeria and India) are working very closely on the rural broadband network project. India is deeply interested because we genuinely have a lot of expertise in the area of broadband network building and reach to the Indian masses. We will examine the written report, and I am sure very soon, we will be in a position to tender out the project under the India Development Assistance, which is a very attractive soft loan funding for Nigeria," Thakur added.

He also said that if the pilot phase of the project is considered, Oyo will be the first place to start followed by other 36 states.