News
ISPs Shun IXPN, Prefer Overseas Exchanges
Hopes of affordable internet services and chances of developing local content on the internet have been hobbled by the reluctance of Internet Service Providers (ISPs) and other telecommunications service providers to connect to Internet Exchange Point of Nigeria (IXPN), Nigeria CommunicationsWeek can now reveal.
Initial cost of connecting to the IXPN standing at about N500, 000 and huge cost of infrastructure required for the handshake are some of the reasons operators have shunned the exchange.
The operators prefer connecting directly to their hubs outside the country and this comes with a price.
For instance, an email originating from say Ikeja to somebody in Victoria Island would have to go to London or outside the country where the operator’s hub is located and back to Nigeria.
It also has national security implications because as the mail passes through different equipment it could be intercepted and read.
Nigeria CommunicationsWeek gathered that to stem the tide Nigeria Communications Commission (NCC) had in July 31, 2009 handed directive to all ISPs and other telecommunications services providers offering internet services to connect to the local exchange.
Regrettably, more than 10 months after the expiration of the directive, internet service providers are yet to route their traffic through the IXPN.
Internet Exchange Point is a physical network infrastructure operated by a single entity whose purpose is to facilitate the exchange of Internet traffic between ISPs and it entails a minimum of three ISPs connected to each other.
IXPN provides a centralized location for the exchange of traffic, close to both the originators and recipients of traffic and content.
It would be recalled that the Federal Government had in 2007 established the IXPN with a view to ensuring that all local internet traffic will not have to leave the country to be re-routed via hubs belonging to overseas carriers.
It was the single most economically-empowering decision by the government to secure Nigeria’s future as an independent and viable centre of local content and online community.
Nigeria CommunicationsWeek gathered that IXPN has many benefits including reduced costs for ISP while enabling them manage traffic more efficiently.
It also improves quality of service by reducing the transmission time, number of routers, and distance traffic must travel.
IXPN reduces transport costs and network latency and ensures faster access to local content because local traffic is exchanged locally, rather than through one or more third party networks including international links.
This exchange of traffic between networks at an IXP is known as ‘peering’.
As at today only about 30 percent of the over 70 functional internet service providers in Nigeria are connected to the exchange.
There are over 300 licensed ISPs and 12 voice telecom operators in the country.
Some operators that are willing to connect to the IXPN are urging the NCC to provide some palliatives to cushion enormous cost.
Others that have completed arrangement for interconnection with the exchange are being delayed due to the planned relocation of the IXPN to a more spacious location.
Nigeria CommunicationsWeek recalled that Olusegun Obasanjo, former president played a crucial role to the actualization of IXPN in the hope that it will help “foster local markets and enable digital inclusion” in Nigeria and the region.
Though efforts to have an Internet exchange point began many years ago, it took the presidential strong will of Obasanjo’s government in November 2005 to ensure that Nigeria got its own IXP.
Immediately, following Obasanjo’s directive, an IXP setup committee was constituted to work with the various structures that was in place, as well as adding as appropriate.
The committee members included the late Ndukwe Kalu (then Internet Service Providers of Nigeria), Ike Nnamani (Medallion Communications), Tosin Oni (InterConnect Nigeria), Femi Adelamo (Emperion W.A), O.T Abiodun (NITEL), Abubakar Yakubu (NCC) and Chris Agha (NCC), including Sam Adeleke of Digitek Teevee Ltd. as the consultant to NCC on the IXPN setup.
In 2006, the board of the NCC approved a proposal to partly fund the setting-up of IXPs, with collaboration between NCC and ISPAN.
The IXPN is now operating from NECOM house, Lagos as its main location; with sub-locations at Victoria Island, Ikeja, Ibadan, Port Harcourt, Abuja, Enugu, Kano & Maiduguri.
Xora Finance has announced it will no longer consider job applicants from Nigeria.
Xora Finance is a digital bank founded by Joren Lundgren, in February 2026 and allows users to deposit and earn interest on their XRP cryptocurrency.
Lundgren, founder, in an announcement on X (formerly Twitter), cited an ongoing pattern of misconduct, such as dishonesty and theft, from previous Nigerian hires as the reason for the decision.
This sudden blanket ban came just days after the company’s official career page was aggressively recruiting remote workers for marketing and content roles.
The announcement generated heavy backlash online, with many people upset that a blanket rule punishes honest job seekers.
Some lawyers have said that victims of Ponzi schemes have legal remedies, although recovering lost funds and prosecuting perpetrators remain major challenges.
A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new participants rather than from actual profits.
Operators lure victims by promising high returns with little to no risk.
The scheme inevitably collapses when the flow of new investors slows down.
Some lawyers who spoke to News Agency of Nigeria (NAN) separate interviews with on Sunday, said that victims could pursue civil actions to recover their money.
Mr Chibuikem Opara, a lawyer at Justification Chambers, Ikeja,said many Nigerians continued to fall victim to Ponzi schemes in spite of repeated warnings.
Opara said it was wrong to attribute participation in Ponzi schemes to a lack of investment opportunities, noting that promoters often exploit investors’ greed through promises of unrealistic returns.
“What you cannot take away is the fact that many Nigerians have fallen and continue to fall victim to these schemes every time,” he said.
According to him, victims may individually or collectively institute civil actions against the beneficiary company for breach of contract or refund arising from failure of consideration.
Opara said victims could also unite to seek an order from the Federal High Court to wind up the beneficiary company.
He, however, noted that such efforts might yield little benefit if perpetrators had already siphoned the funds and left behind an empty shell.
The lawyer said available remedies largely depended on the actions of relevant authorities, adding that recipient accounts could be frozen to facilitate fund recovery and support winding-up proceedings.
Opara said regulators and law enforcement agencies often became aware of Ponzi schemes only after substantial losses had occurred.
According to him, victims frequently failed to report suspicious schemes early enough to enable timely intervention.
He added that funds are sometimes moved outside the country before authorities become aware of the fraud.
Opara also cited inadequate information and the deceptive nature of the schemes as major obstacles to investigation and prosecution.
“Most times, everything about the schemes is made to appear elusive, just like the profits promised to victims,” he said.
Also speaking, Mr Vincent Aminu of A.F. Aminu and Co. advised that victims of investment scams should report such cases to appropriate law enforcement agencies on time.
Aminu said victims could petition the Economic and Financial Crimes Commission (EFCC) or file reports with the police.
He said that after investigation, prosecutors could bring charges against suspects under relevant fraud-related laws, including provisions of the Criminal Code and the Advance Fee Fraud and Other Fraud Related Offences Act.
Beyond criminal prosecution, Aminu said .victims could pursue civil actions to recover their money
According to him, such actions may be based on breach of contract, unjust enrichment, or fraudulent misrepresentation, depending on the circumstances.
He added that victims could petition the Securities and Exchange Commission (SEC), which could investigate illegal operators, shut down unauthorised platforms, and freeze assets.
He identified the anonymity of online fraudsters as one of the biggest challenges confronting investigators.
According to him, many operators concealed their identities through fake digital profiles and technologies that made tracking them difficult.
Aminu also noted that victims who delayed taking legal action risked losing opportunities for redress.
He added that prolonged court proceedings often delayed justice for victims.
“Many fraud-related cases take years before the court reaches a verdict, thereby delaying justice for victims,” he said.
Also, Mr Chris Ayiyi of Ayiyi Chambers, Apapa, described Ponzi schemes as a gamble that benefited early participants at the expense of later investors.
Ayiyi said some early entrants received returns on their investments, thereby encouraging others to join the schemes.
He said the schemes eventually collapsed, leaving late investors to bear the losses
The lawyer called for a complete ban on Ponzi schemes or sustained public enlightenment campaigns against them.
He urged the National Assembly to enact laws that would strengthen regulation and provide greater protection for investors.
According to him, stronger legal safeguards are necessary in a country operating a capital-based economy.
PalmPay Group (“PalmPay”), a multinational fintech company providing digital financial services across high-growth emerging markets, is pleased to appoint Samuel Oluyemi as Chief Operating Officer (“COO”) of its Nigeria practice, effective immediately.
The appointment comes at a pivotal moment for PalmPay as it looks to reach more underserved communities and continuously strengthen the reliability and security of its services. It also comes as Nigeria’s broader financial services sector continues to modernize, bring millions more Nigerians into the formal financial system, and strengthen the cybersecurity and fraud-prevention standards that underpin public confidence in digital payments.
As COO of PalmPay Nigeria, Mr. Oluyemi will oversee PalmPay’s Nigerian operations — where the company provides a full suite of digital financial services to individuals and businesses — and communicate with regulators to ensure the company’s growth happens harmoniously with the country’s financial, digital, and social inclusion goals.
Mr. Oluyemi brings more than two decades of experience at the Nigeria Inter-Bank Settlement System (“NIBSS”). During his tenure as the Business Development Lead, he championed the development of key national payment services — including the Digital Validation of Nigerian International Passport (e-Passport Validation), Electronic Dividend Mandate Management System (“e-DMMS”), and the Electronic Pensions Contribution Collection System (“EPCCOS”) — and played a pivotal role in introducing and driving early adoption of NIBSS Instant Payment (“NIP”), Nigeria’s first online, real-time, inter-bank transfer system in 2011 and its subsequent extension to the Other Financial Institutions (“OFI”) segment of the Nigeria Payments System.
He holds an MSc in Monetary Economics from the University of Ibadan with extensive local and international professional training.
“Samuel joins PalmPay at an important stage in our journey to strengthen the foundations that will support our long-term goal of driving financial inclusion,” said Chika Nwosu, Managing Director of PalmPay Nigeria. “His extensive experience makes him well positioned to help us scale sustainably while maintaining the operational discipline, governance and customer-first culture that define PalmPay.”
“PalmPay has established itself as one of the most impactful fintech companies in emerging markets by making financial services more accessible and affordable for millions of people,” said Mr. Oluyemi.
“I am excited to join the company and look forward to working alongside an exceptional team to strengthen operational excellence and support PalmPay’s vision of building a leading digital financial services platform. Together, we will continue delivering secure, reliable, and customer-focused financial solutions while contributing to the continued evolution of Nigeria’s digital financial ecosystem.”
As Nigeria’s digital financial services sector continues to mature, this appointment reflects a broader commitment guiding PalmPay across all markets it serves: building financial services that are secure, reliable, and effective enough to earn a permanent place in people’s everyday lives.
Xora Finance, Fintech Firm Refuses to Hire Nigerians over Alleged Dishonesty
FG Secures Fresh $208.3m World Bank Loan for Cash Transfer
How Ponzi Scheme Victims can Seek Legal Remedies — Lawyers
SERAP Sues INEC over Alleged N800Bn 2027 Tinubu Campaign Fund
Kaigama,Catholic Archbishop of Abuja Warns against Misuse of AI
NRC, Ponzi Scheme Collapses Resulting Loss of Billions of Naira
Nigeria Launches FreeTV Nationwide
NASENI Moves to Digitize CCB’s 5m Assets Declaration and Operations
Lebara Nigeria Launches Lebara Play, Africa’s First Telecom-Owned Micro-Drama Platform
CANAL+ Partners Samsung to Pre-Load DStv Stream on New Samsung TVs In Nigeria, Other African Countries
Telecom3 days agoDStv, GOtv Owner MultiChoice Officially Joins Canal+ Group
News3 days agoPolice Busts Syndicate Who Allegedly Stole N3Bn from Financial Institution
Telecom3 days agoAirtel Africa to Connect 5,000 Schools to Free Internet by 2027
E-Financial3 days agoSEC Unveils Plans to Enforce Mandatory ESG Reporting for Large Firms Next Year
Telecom3 days agoMTN Accelerates Network Expansion to Meet Surging Telecom Demand
Broadcasting3 days agoFrom Scarcity to Scale: What Africa Can Learn from India’s Agricultural Transformation
E-Business3 days agoTeKnowledge, Equinix Partner to Advance Nigerian Digital Infrastructure
General News3 days agoNSIB Faults Runway Identification, Reveals Cockpit Disagreement in Asaba Jet Incident