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Mohammed Rudman is the managing director of Internet Exchange Point of Nigeria (IXPN).
In his over a decade experience in the information and communications technology, Rudman has worked as network administrator in Independent National Electoral Commission (Inec) from where he moved to Galaxy Backbone.
He spoke to chike onwuegbuchi on how IXPN will help stimulate growth in internet service delivery and local content.

Exchange Point and Nigerian Economy
Our role is to interconnect service providers, Telcos, Universities, financial sectors and virtually almost every organization that deals with information technology so that they can exchange local traffic locally within Nigeria.
This will benefit the economy tremendously, because it will have multiple effects. Apart from the direct benefit; there are other indirect benefits to the economy. When you look at all our service providers, they interconnect right now outside the country and therefore their traffic is being exchanged outside the country, on the process they pay for that interconnection outside the country in foreign currency, so that is capital flight, for traffic that suppose to be exchanged within the country, you now export it for you to bring it back. So, to save the country that capital flight, it means that local traffic should be made local which is the reason behind the establishment of Internet Exchange of Nigeria.
And if you look at issue of our security, because our traffic is no longer going outside the country, it remains local within the country; it means that we are secured to some extent because we are communicating within ourselves. By the time you push those Email outside Nigeria to come back it is possible for somebody to see your own email, it means we are a bit vulnerable, but by the time we are all interconnected such email will not be taken away.
Also if you look at our educational institution, they can interconnect with us, and right now we are working with University of Lagos to have what is called Eko Connect, which is higher educational connectivity project to interconnect higher educational institutions within Lagos towards national research and educational network, so this also will have multiple effect on the economy, because they are training our graduates, and they should be able to collaborate for research. It also promotes local content development, because with us you can start posting content locally, so with this you can promote culture and heritage.
Value Added Services
First, because exchange points are very suitable for centralized infrastructure within the country, we decided to discuss with one of the thirteen global root server operators in the world for them to keep their servers in Nigeria. This will make local translations of names in the internet possible in Nigeria and our discussions have reach advanced level and within the next one month, the root servers will be active in Nigeria, which will be the first root server in West Africa.
Secondly, we are also trying to put time server within Nigeria so that one can synchronize his or her time with us, like if you have a computer at home or in your office you can synchronize it with us so that their timing will be exactly the same because right now there is no public time server for Nigeria, so with that, different network can now synchronize their time from one source. We have already implemented what is called Community DNS in Nigeria. It has been implemented 100% and it is working.
So we are doing other things like that so as to promote local content and provide centralized infrastructure.
ISPs with Foreign Partners
This will not affect our services because this site is very important, we put them in remote places where people can have access to the internet and it will continue because we have so many remote areas that needs internet access.
Also some of them are already thinking in this direction and are relocating their hubs back into the country. They want to localize their traffic and have brought back their hub from US back to the country, for them to be interconnected to the exchange point. By the time all of them bring back their hub, it means that local content within Nigeria remains local and it will also save them some satellite bandwidth.
New Undersea Cable Initiative as Boost to ISPs in Nigeria
This will help to lower the cost of internet access generally, and will promote reliability because it is more than one cable, formally we have only one submarine cable, SAT 3, now Glo 1 is coming Main One is coming and WACS will come maybe next year, so with this, it means that we have multiple redundancy. Because internet is becoming our ways of life, it is becoming also a critical infrastructure just like water, power and so on. It is very good that we are having this many cables coming in so that, we will now have reliability incase one cable fails, and normally when it happens we have back ups because competitors are coming in and because they are many. I believe that due to competition the prices of internet will really drop and it will be available to the common man as long as the distributing channels are there. As they all are coming in through the sea to the landing stations in Lagos, just like you have containers coming in ships to Lagos, now if we don’t have the road to distribute these containers then there is a problem. The distribution network is in terms of fiber network connecting to the most remote part of the country like Sokoto, Maidugri etc., if such infrastructure exists in these locations, I think it will really lower the cost.
Success Made so Far
Formally the progress and the success were a bit small because we are new and people don’t want to change. We are telling them to change, instead of having one direct path to the internet, to start having two interconnections, one to the left and the other one to the right, if you are going to the internet, you go to the left and if you are going to the Nigerian content, you go right. So this means a change from the one single direction to two directions. It was difficult trying to bring competitors to cooperate for the common interest of both parties. It has been difficult, but eventually we have broken that barrier and it is now happening. The service providers are now cooperating. Though they are competing outside publicly, but they are collaborating privately trying to save the country and to promote efficient services to their customers.
The traffic has increased from very small to more than few thousand percent from the time we started. I think we have made a reasonable progress and we are right now at what is called the tipping point, where things will eventually start changing so fast because we have made the progress to this level and there will be tremendous progress because international organization are even coming to join us like Google now is coming to connect to us very soon.
Force on Operators to Interconnect
The answer could be yes or could be no, because there is a say that you will take the horse to the river but cannot force it to drink water. You can force them to interconnect but you cannot force them to exchange traffic, and on the other hand when you force them to interconnect, you might awaken them to see the actual benefit that formally they were not seeing, so it has a good side for the regulators to force them and it also has a bad side.
Required Capacity to Carry theTraffic
We have more than what is required. Right now, we are using less than 5% of our capacity; we have excess capacity that we can accommodate. We can easily handle all the traffics, so I think we have the capacity to handle almost everybody.
Expansion of Operations
We intend to be in six geopolitical zones, and we are partnering with National Information Technology Development Agency (NITDA) to add two additional exchange points before the end of this year in two regions within Nigeria.
The Way Forward
We have a program right now; we are trying to move to a better modern facility, and this is where we are going to have the switching equipment, the browsing equipment and this is all because of the support from Nigeria Communication Commission (NCC). They are funding the movement and I want to also use this opportunity to thank them for this; and with this infrastructure we will be able to provide quality service because the international organizations are coming in and they wouldn’t want to compromise on quality. That is why we are providing a high standard world class facility for them and for the entire Nigerian service providers to connect.
IP Version Six
IP version 6 is a new standard protocol for IP communication, right now we are using IP version 4.  Because of limitation on size of IP version 4, it is almost going into extinction and it is anticipated that in the next one year it will no longer be available for use that is why globally people are moving into IP version 6. Unfortunately, Nigeria is left behind and that is why we are battling with original internet registry for them to start training in Nigeria for IP version 6. 
The first training is going to take place in September, first week of September most likely in Lagos and on the second week in Abuja and we intend to continue this training so we can make the impact, so that the networks here can move from IP version 4 to IP version 6.

 


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General News

MSMEs Paucity of Funds Receives Boost as Senate Backs Bill Seeking to Unlock Cash for them

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Businesses across Nigeria, particularly micro, small and medium enterprises (MSMEs), may soon be able to convert unpaid invoices and credit sales into immediate cash without relying on conventional bank loans following the passage of the Factoring, Assignments and Receivables Financing Bill for second reading in the Senate.

The bill, which seeks to establish a legal framework for factoring and receivables financing, is expected to improve access to credit, boost liquidity for businesses and enhance domestic and international trade.

It also seeks to provide legal certainty for the assignment of receivables through factoring, promote transparency, modernise assignment laws and facilitate greater access to credit for businesses across the country.

Leading debate on the bill which was sent from the House of Representatives for concurrence, Senate Leader Opeyemi Bamidele said on Tuesday that the proposed legislation would create an enabling environment for debt factoring to thrive in Nigeria while defining the rights and obligations of creditors, factors and debtors involved in such transactions.

He explained that the bill provides for factoring contracts between sellers and factors and clarifies the legal relationship among parties in receivables financing arrangements.

According to Bamidele, the legislation has already passed all legislative stages in the House of Representatives and has complied with the Senate’s procedural requirements under Order 78(3) of the Senate Standing Orders.

He told lawmakers that the Senate Ad Hoc Committee on Compliance, chaired by Abdul Ningi, had scrutinised and cleared the bill for concurrence.

“The committee confirmed that all procedural requirements for consideration and concurrence by the Senate have been fully met,” he said.

Seconding the bill, Adetokunbo Abiru said the legislation would provide businesses with an alternative source of financing by enabling them to turn credit sales into cash and improve their working capital.

Abiru noted that factoring has become increasingly popular across Africa over the last decade, largely through initiatives supported by the African Export-Import Bank (Afreximbank).

He disclosed that the African factoring market is currently valued at over $50 billion, but Nigeria’s participation remains below one per cent.

According to him, countries such as Egypt and Morocco have benefited significantly from the financing model, adding that Nigeria risks missing out on the growing market without a clear regulatory framework.

“I think that passing this major legislation will help support our micro, small and medium enterprises in terms of converting most of their credit sales into cash without going through the normal borrowing arrangement,” Abiru said.

In his remarks, Ningi also assured lawmakers that the compliance committee had reviewed the bill and found no legal impediments to its passage.

Following a voice vote, the Senate approved the bill for second reading and subsequently referred it to the Committee of the Whole for clause-by-clause consideration.

 


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IMF Warns Nigeria of Risks in $5Bn Swap Deal with ‌First Abu Dhabi Bank

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The IMF on Tuesday warned of risks surrounding Nigeria’s plan to borrow up to $5 billion through a derivatives agreement with ‌First Abu Dhabi Bank, saying such transactions are often opaque and complex.

IMF Warns Nigeria of Risks in $5Bn Swap Deal with ‌First Abu Dhabi Bank

Recall that the Senate in April gave its approval to the agreement, joining other Africa borrowers like Senegal and Angola who have tapped similar arrangements over the past year.

“Our view is that the transaction in these types of structures carry risks. Usually they are opaque so the terms are not always very transparent when we reviewed these instruments ​across countries,” Christian Ebeke, IMF resident representative in Nigeria, told reporters.

Ebeke said Nigeria could instead issue eurobonds to finance its deficits or other means to raise funding, including on concessional terms.

Nigeria intends to use proceeds from the total return swap, or TRS, to refinance expensive debt and pay for infrastructure.

In its latest Article IV review, the Fund praised Nigeria’s sweeping reforms, saying they had strengthened economic stability and investor confidence, but warned that the benefits had ‌yet to reach millions of citizens and could be undermined by global shocks, including the Middle East conflict.

The reforms since 2023 under President Bola Tinubu – including fuel subsidy removal, tighter monetary policy and exchange rate liberalisation – had rebuilt buffers and improved macroeconomic management, the IMF said.

However, it cautioned that the reforms were also contributing to social strain, with poverty levels at 63% and millions facing food insecurity, underscoring a widening gap between macro gains and household realities.

The IMF said improved policy credibility and forex reforms had helped Nigeria regain access to international capital markets and attract portfolio inflows, while reducing risk premiums. The central bank says gross reserves are at $50 billion, the highest in 17 years.

But reliance on volatile foreign portfolio investment poses rollover risks, the IMF said, urging a shift towards more stable, long-term capital such as foreign direct investment.


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SSDC Warns Businesses against Cyber, Election-Related Risks

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Security Skills Development Company (SSDC) has released its 2026 Security Outlook, highlighting four major security challenges expected to shape Nigeria’s business and operating environment as the country moves closer to the 2027 general election.

SSDC Warns Businesses against Cyber, Election-Related Risks

The report, developed from a nationwide survey and expert contributions at the recently concluded Security Thought Leadership Roundtable, identifies internal security threats, protection of national assets, cyber risks and election-related instability as the most significant concerns facing organisations and institutions in the coming year.

According to SSDC, findings from the survey and stakeholder discussions reveal growing concern over the increasing complexity of security challenges and their potential impact on business continuity, economic stability and public confidence.

A substantial number of respondents identified internal threats within organisations as an emerging risk, pointing to the need for stronger corporate governance, workforce integrity measures and structured risk management systems.

Security experts at the roundtable noted that weaknesses in critical public infrastructure and national assets could have far-reaching consequences for the economy and national development if not adequately addressed.

The report also highlights cybercrime as a persistent and evolving threat to both public and private sector institutions.

Participants stressed the importance of strengthening cyber resilience through proactive monitoring, investment in technology-driven safeguards and improved security awareness.

Another key concern raised in the outlook is what SSDC described as the “2027 Election Shadow.” Many respondents expressed concerns about the possibility of heightened political tension as the election season approaches, warning that uncertainty and security disruptions could affect business operations, investment decisions and overall economic confidence.

Speaking on the report’s findings, Mike Igbodipe, managing director, SSDC, called for a more strategic approach to security management across both public and private sectors.

He said organisations must move beyond reactive security measures and integrate security considerations into their broader strategic planning and decision-making processes. He also advocated the development of a gold-standard, locally certified training programme for security professionals tailored to Nigeria’s unique security environment.

SSDC, a security training and consulting firm focused on advancing professional standards in Nigeria’s security sector and strengthening industrial resilience through capacity building and strategic expertise, said the Security Outlook forms part of its ongoing thought leadership initiative aimed at promoting informed dialogue on national security, institutional resilience and risk management.

The company reaffirmed its commitment to supporting stakeholders through research, training and strategic advisory services designed to improve preparedness and response to emerging security challenges.

 

 

 


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