The Lagos State Government has secured a $22 million foreign direct investment to expand its fibre optic infrastructure, a move that is expected to accelerate digital access and connectivity for Micro, Small and Medium Enterprises (MSMEs) across the state.
The announcement was made during a ministerial briefing marking the second year of Governor Babajide Sanwo-Olu’s second term. The Special Adviser to the Governor on Infrastructure disclosed that the investment was secured through the Lagos State Infrastructure Maintenance and Regulatory Agency (LASIMRA), and it forms part of a broader strategy to enhance broadband access and digital transformation in Lagos.
The state has embarked on an aggressive fibre expansion programme, planning an additional 2,700km fibre duct installation, building on the 3,000km already completed by private contractor WTES. This is in addition to the 3,300km metro fibre rollout already underway, with a new target of 1,200km set for 2025.
These efforts are expected to significantly improve internet speed and coverage, especially in underserved areas, making it easier for small businesses to leverage digital platforms for operations, marketing, payments and customer engagement.
Since 2023, the fibre rollout has enabled over one million new internet subscriptions and expanded the reach of telecom services to areas previously left out of the digital economy. This development is crucial for MSMEs, many of whom depend on reliable internet access for business continuity and growth.
Beyond connectivity, the state is also pushing forward with its Safe City Project. Hundreds of smart surveillance cameras and traffic management systems have been deployed in key areas.
such as Alapere and Allen Avenue. These initiatives aim to enhance public safety and urban efficiency, indirectly creating a more stable environment for business operations.
Lagos State is also investing in long-term digital infrastructure. Four new data centres are currently under construction, with the aim of boosting information storage and technology capacity. By 2025, the state plans to build out a 6,800km fibre optic network, of which 3,500km has already been completed.
Governor Sanwo-Olu has stated that these investments are geared towards turning Lagos into a digitally-driven economy where innovation, entrepreneurship and inclusive growth can thrive. He noted that 14 government agencies have already digitized their operations, streamlining service delivery and reducing time spent on bureaucratic procedures, an important development for MSMEs seeking permits, licenses, or other official support.
Lagos continues to position itself as Africa’s leading tech hub, accounting for over 60 percent of Nigeria’s tech startups. In 2023 alone, Lagos-based startups attracted more than $1.2 billion in funding, representing 75 percent of Nigeria’s total tech investment.
With the latest $22 million investment in fibre infrastructure, Lagos State strengthens its foundation for a smarter, more inclusive digital economy. MSMEs, which are often excluded from advanced digital infrastructure, stand to benefit the most as faster internet, broader coverage, and stronger digital tools become more accessible across the state.
