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Making Good Use of Universal Service Provision Funds

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The Nigerian National Telecommunications Policy provides a mandate for universal access to telecommunications services for economic, social and political development.  The Communications act requires a Universal Service Provision Fund (USPE) that will promote the widespread availability of ICT network services to underserved areas.
The USPE is a platform for Government to encourage the development of telecommunications services in the rural areas and promote rapid social-economic development that will eventually minimize the access gap by providing public telephony and internet point of presence within 5kilometers.
Telecommunications in Nigeria has contributed to the creation and sustenance of jobs through employment of direct and indirect labour at various levels. Mobile telephony currently account for over 95% of the total telephone connection in Nigeria with mobile GSM and CDMA operators contributing in excess of 74 million subscribers out of the total industry figure of 76 million reported in first quarter of this year.
Recent efforts
The Nigeria Communication Commission (NCC) has so far released about N30billion for the executions of variety of programmes through Universal Service Provision Fund (USPF) in the six geo-political areas of the country.
Mr. Funso Fayomi, executive director/ Secretary of the USPF, disclosed recently at the North West stakeholders’ forum organized by the NCC in collaboration with USPF, that already over 550 secondary schools under the schools access programme and 133 tertiary institutions under the tertiary institution access programmes across the nation have been provided with computers and necessary ICT facilities.
According to him, under the 5years strategic programme of the USPF, over 70 percent of Nigeria communities in the rural areas where the provision of network services are either unserved or underserved will be provided with community communication centres (CCC).
“Each of the community communication centres will provide a public calling centre, a cybercafé and ICT training centre as well as serve as flat form of extending wireless internet access to the neighboring communities,” he said.
He further stressed that the CCC will enable the private operator/ implementing counter part to install and run a wireless broadband internet point, adding that services will enable access to the internet for individuals, businesses, government offices and other community based organizations.
Enumerating other achievements of USPF, the executive director/ secretary of USPF said the USPF is ready to provide funds to assist schools and unserved and underserved communities nationwide, but quickly added that various state government should provided necessary facility and security for selected schools in the targeted areas.
‘We cannot deny any community or school ICT facilities because they don’t have classrooms or electricity, which is why we take time to meet with state government and appeal to them to provided any such select areas with necessary basic infrastructures".
Mr Fayomi said the USPF don’t implement or won any projects, adding that they only provided the fund and ensure that the contractor handling the projects are properly mobilized to execute the projects in the selected areas.
Engr. Stephen Adebayo Bello, acting executive vice chairman of Nigerian communication commission (NCC), said one of the basic objective of the USPF is to contribute to national economic and social development through enhancing ICT infrastructures and services.
Engineer Bello explained that the USPF strategic plans cannot be actualized without the participation of the beneficiaries of the projects in terms of design and deployment, and charged CBO’s in various regions in the country to take up the challenges for the development of their respective locations by becoming aware and get more involved.
Explaining the school access programme, SAP, Fayomi noted that the project provides computer, accessories and high speed internet connection to selected schools, including laptops for teachers. “Each school will have a wireless mesh that will connect all the computers and the teacher’s laptop and the project which adapts the school’s curriculum for computer training includes a training module for teachers.
Giving what seems to be a report card of the entire project, Fayomi pointed out: "As we all gather here today to commission a few of the completed USPF projects; we want to also inform you that, we have rolled out similar projects in each of the geo_political Zones of the nation.
On the whole, we have 218 Community Communication Centers (CCC) and 240 USPF subsidized Base Transceiver Station (BTS) spread across the federation in different stages of completion. We have also provided 476 government secondary schools with 100 computers, a 5KVA generator and broadband connectivity (per school) under the School Access Project SAP, 133 tertiary institutions with 100 desktops and broadband connectivity (per school) under the TIAP Project. In Cross River State we have also provided facilities for the University of Calabar."
He promised that USPF will always team with relevant stakeholders to bring ICT facilities to the various ends of the country, adding that the overall plan is to be able to reach every school in the country.
Stakeholder/Private sector participation
There is need for harmonization of current uncoordinated effort by government to provide practical support for the USPF, such as; NCC’s wire Nigeria project (WIN) and Sate Accelerated Broad band Initiative (SABI) NCC Universal Service Pilot project Funded by the World Bank and Ministry of Communication’s National Rural Telephone Project (NRTP) as well as Ministry of Science and Technology’s Galaxy Backbone Project.
Federal Government Computer for all Nigerians (CANI) amongst other Industry bodies should be represented on the USPF and its committees to promote greater collaboration between the USPF and stakeholders. Increase transparency in management of USFE and increase stakeholder participation in the collection, administration Management of USP Funds Need to appropriate adequate incentive to ensure that ICT rollout in the rural and underserved communities is not hampered by the inadequacy of requite incentives.
USPF to ensure that the NTP and Universal Access policies are reviewed constantly and those stakeholders are duly consulted throughout the review process. This is critical as it will promote greater confidence of stakeholders and contribution in the management of the USPF. USPF should adopt best practice to suite local environment conditions had peculiarities of the Nigeria Market.
USPF should priorities build out of backbone infrastructure by private operators aimed at accelerating the build out of backbone transmission infrastructure into un-served and under-served rural and urban communities.
The NCC through the USPF should allocate frequencies in the 2.4,3.5,4.5 900 MHz free of charge to operators providing communications services to rural areas.
There is need for USPF to continue stakeholder consultation on regular basis. USPF projects should be implemented on a wide scale and robust basis.
Barrier to Universal Access
Extremely high operating costs in rural communities. High maintenance cost due to non availability of infrastructure such as Power roads, and High License/spectrum numbering fees without regards to unserved areas that should benefit from universal access policies.
Comments on Contribution to USPF Funding:
Further to provisions in the regulations giving NCC discretion to increase or decrease the percentage of AOL contributions already set at 2.5% to be paid into the USPF and to set the amount of the “USP levy” from time to time. In the light of multiple taxation and regulatory issues, that any additional onerous, that any administrative burdens on operators should be avoided.  
The USPF should always make clear references to the percentage of the AOL to be paid into the USPF by the NCC. Any further changes to UA policies that will impose additional financial obligations on operators should only be undertaken after extensive consultations with stakeholders i.e. Operators.
Incentives for Operators Under the USPF
Engr. Gbenga Adebayo, chairman Association of Liccensed Telecommunications Operators of Nigeria (Alton) said proper coordination of varied Universal Access initiatives is required to avoid duplication and ensure optimal utilization of resources, there is the need to streamline the national rural telephony programme sponsored and coordinated by the Ministry of Communications and any other similar initiative by Government currently running parallel with the USPF along the policy objectives of USPF.
He highlighted some of the incentives as investment in infrastructure which would have ordinarily been provided by Government such as access roads, pipe borne water, electricity supply. Investment in economically disadvantaged areas – 100% tax holiday for seven years and an additional 5% capital depreciation allowance. Subsidies and tax allowances on capital investment incurred rolling out in underserved and un-served areas that would be unprofitable in the short and medium term.
Others are total exemption of towers and masts from any form of levies, charges or other taxes by any level or arm of Government. Duty exemption on Network rollout equipment – fiber optic cables, terminal equipment, and specialized telecom equipment. USPF/NCC should ensure that Spectrum fees for frequencies required for rural roll-out are not expensive both in cost of allocation and renewals. Encourage rural entrepreneurs to co-invest in telecom network with operators which give mutual benefit both to local partners and entrepreneur local operators and local communities.
Benefits currently offered by Operators
Adebayo explained that operators offer low cost handsets both GSM and CDMA Operators. Service affordability (SIM costs as low as N100) Operators retention of subscribers on the networks irrespective of income/dormancy level, and availability of rechargeable cards in low denominations. Free on-net calls on some networks, and co-location and co sharing of infrastructure among operators. The National Rural Telephony Programme and other similar Government Rural access initiatives should be subsumed under the USPF. This industry bodies should be represented on the USP board and be better positioned to influence decisions of the USPB. Each stakeholder should perceive the other as an equal partner in the Universal Access Project Operators should contribute to the USF by duly paying Annual operating Levies. 
Subsidies should only be granted to efficient and tested operators.
USPF administrative costs should be kept at a minimum to ensure funds are not eroded. Regulatory fees (numbers, spectrum, AOL) and State/Local Government levies paid by operators should be reviewed downwards to reflect only the administrative cost of issuance.


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Bharti Airtel Crosses 650m Users

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Sunil Mittal led Bharti Airtel has crossed the 650-million customer mark globally, fortifying its position as the world’s second-largest telecom operator by mobile subscriber base, as per a regulatory filing by the telecom operator.

Bharti Airtel Crosses 650m Users

“According to GSMA Intelligence, Bharti Airtel is ranked second globally by mobile customer base, with operations spread across India and Africa,” the filing said.

Commenting on this milestone, Gopal Vittal, executive vice chairman, Bharti Airtel, said: “Achieving the milestone of 650 million customers to be the second largest operator globally is a great responsibility for us to serve our customers better every day,”

He added that the telco strives to raise the bar on innovation, reliability, and experience so that every customer interaction is an opportunity to earn trust and deliver value connection.

Currently, Airtel India serves around 368 million mobile customers, meanwhile over 179 million users have been plugged into its subsidiary Airtel Africa spread across 14 countries.

Its mobile money platform, Airtel Money reached more than 52 million customers.

Additionally, the telco serves around 13 million homes with high-speed internet services and over 15 million through its Digital TV offering.

With operations spanning 15 countries and network coverage reaching over two billion people, analysts say that the latest milestone is a testimony to the natural curve of evolving from a telecom operator into a broader digital services provider.


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NCC Insists Telcos Must Compensate Subscribers for Poor Quality of Service

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Dr. Aminu Maida, executive vice chairman, Nigerian Communications Commission  (NCC), has insisted that telecommunications operators must compensate subscriber for poor quality of service after a facility tour of major telecommunications operators in Lagos yesterday.

NCC Insists Telcos Must Compensate Subscribers for Poor Quality of Service

The team comprises of Chief Idris Olorunnimbe the Chairman of the Governing Board of the Nigerian Communications Commission (NCC), EVC, Engr. Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON) and other stakeholders visited MTN Nigeria, Globacom and Airtel Nigeria.

Earlier this week, the commission directed Mobile Network Operators (MNOs) to provide compensation to subscribers whose network quality of service experience is below specified targets within certain locations.

In a statement signed by Nnenna Ukoha, head, Public Affairs Department, NCC, the commission noted that its position is that subscribers should not be made to bear the full burden of service disruptions where operators fail to meet prescribed standards of service delivery.

Speaking after the facility tour the EVC, said: “We are in a situation where Nigerians are yearning for better service, but better service requires infrastructure. We are not where we want to be or where we need to be, but from what I’ve seen today, I am reassured that the operators are continuing to invest. I urge Nigerians to be a little bit patient while these investments are made, so that we can address the infrastructure deficit that is required to improve service for Nigerians.

“I wasn’t expecting that a tour like this would change that directive. We looked at it and we said the fairest thing to do was for subscribers to be compensated. This is not to say that the operators have not tried. Service has improved. The data shows that our demand is also increasing at a rate faster than the infrastructure is being built. So Nigerians have to be a little bit patient. From what I’ve seen today and all the work that has been done, I’m confident that gap will be close shortly”.

Chief Idris Olorunnimbe, chairman of the Governing Board of the Nigerian Communications Commission (NCC), added: “From what we have seen, and what has been done. We have been told in detail what is to come. And I mean, just like the EVC said, all we need is a bit more patience, better service, deeper penetration is assured based on everything that we’ve seen, and everything we have heard.

“It’s also important to commend our operators. The infrastructure that we’ve seen is comparable with any infrastructure from any telecom operator anywhere in the world, and Nigeria is not behind, and based on what we’ve also seen in terms of their plans for expansion, Nigeria will always be able to compete with any other country in the world.

” More so, drop calls are not deliberate. They are caused by a few things. One of it is fiber cut and attacks or vandalization of towers and other infrastructure. But now, it has reduced. We have seen they’ve shown us data today that shows a significant reduction. It will continue to reduce. As the critical national infrastructure program deepens and we’re also about to introduce an accountability framework of “when fiber is damaged, you must fix it”. That way we think that people will be more responsible with their constructions that breach telecom infrastructure. Then we can keep those incidents to the barest minimum, drop calls would also reduce.

“However, when calls drop, the networks also lose so it’s not in their interest for your calls to drop or for you to experience frustration when you use the service, because the more reliable it is, the longer you spend on it, the longer you spend on it, the more money they’re able to make. So, they are also doing their best in terms of ensuring that these incidents are reduced to the barest minimum”.


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NITDA Urges Joint Action to Drive Nigeria’s Digital Innovation

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Kashifu Inuwa, the Director General of the National Information Technology Development Agency (NITDA), has underscored the importance of collaboration between government institutions and emerging startups as a catalyst for Nigeria’s digital transformation and national development.

Speaking at the Nigerian Satellite Week 2026 in Abuja, themed “Harnessing Space Technology for an Extraordinary Nigeria,” Inuwa urged stakeholders to embrace partnerships as a pathway to innovation and impact.

“Take a good step, and you can make a difference,” he said, emphasizing the need to translate ideas into tangible outcomes through collective effort.

The NITDA boss, represented by the Director of Stakeholder Management and Partnerships, Aristotle Onumo, during his presentation on “Enhancing collaboration between government agencies and emerging start-ups”, outlined four guiding principles for driving transformation: enabling the ecosystem rather than controlling it; prioritising networks over institutions; developing talent while supporting innovation and adopting practical solutions; and focusing on platforms rather than isolated projects.

To illustrate the power of digital innovation, Inuwa shared the story of a rural farmer whose productivity challenges ranging from unstable rents to failed loans were overcome through access to digital tools and networks. He explained that such incremental interventions can scale into broader economic gains, ultimately contributing to national infrastructure like satellite systems.

“This is the power of space technology, and it shows why events like this are so important,” he noted.

Highlighting the evolving role of space technology, Inuwa observed that startups are increasingly driving innovation across telecommunications, navigation, security, and cloud services. Once dominated by global superpowers, the sector is now emerging as a key economic driver, with Nigeria’s “Sunrise Packet” projected to contribute over $1.5 billion to the economy by 2030.

“Innovation without adoption is wasted,” he added, stressing the critical role of government in enabling start-ups to scale through supportive policies, infrastructure, and incentives.

According to him, developmental regulation should focus on creating markets, orchestrating ecosystems, and delivering public value rather than stifling innovation. He pointed to several initiatives supporting the growth of Nigeria’s innovation ecosystem, including the Digital Start-Up Act, Idea Hatch, and the National Digital Leadership Programme, all designed to empower young innovators and connect them to global opportunities.

He further highlighted platforms such as GITEX Africa, GITEX Nigeria, and Digital Nigeria, which provide visibility for start-ups and attract investment, partnerships, and mentorship.

Inuwa concluded with a strong call for collaboration among government, start-ups, non-governmental organisations, and investors, describing Nigeria’s youth as the country’s greatest asset.

“If we are going to create a digital Nigeria, we must collaborate,” he said.

Also speaking at the event, the Minister of Communications, Innovation and Digital Economy,  Tijani, described Nigeria’s satellite infrastructure as central to the nation’s digital future.

“Nigeria is the only West African country with its own satellite. NigComSat provides critical connectivity and resilience, benefiting not just Nigeria but the entire region,” he said.

Tijani disclosed that President Bola Ahmed Tinubu has approved the acquisition of NigComSat-2A and NigComSat-2B, a move expected to significantly enhance the country’s space capabilities.

He stressed, however, that infrastructure alone is not sufficient.

“What truly matters is how we leverage this technology to improve agriculture, education, security, and business operations,” he said.

The Minister also highlighted key government investments, including a ₦12 billion digital economy research cluster fund under Project Bridge, which will support academics and researchers nationwide. He added that Nigeria is expanding its digital backbone through 90,000 kilometres of fibre optic cables, nearly 4,000 telecom towers in underserved communities, and new satellite deployments to strengthen regional connectivity across countries such as Cameroon, Niger, Chad, Burkina Faso, and the Republic of Benin.

“The talent, ideas, and energy are all here in Nigeria. It is up to us to turn them into real outcomes for our people and the economy,” Tijani added.

The Nigerian Satellite Week continues to provide a strategic platform for collaboration among government, start-ups, academia, and the private sector, fostering innovation and reinforcing Nigeria’s leadership in Africa’s digital and space economy.

Welcoming participants, the Managing Director of Nigerian Communications Satellite Limited (NIGCOMSAT), Jane Nkechi Egerton-Ideyen, said Nigeria’s space programme is entering a new phase marked by deliberate and focused growth.

She pointed to strengthened institutional capacity, expanding partnerships, and clear economic gains, noting that the agency’s revenue grew from less than $650 million in 2023 to over $2 billion in 2025. She attributed this surge to key reforms, new commercial deals, and increasing demand for satellite broadband services across the African continent.

Egerton-Ideyen also disclosed that Nigeria has launched seven space assets in just over two decades, adding that the country is shifting its focus from prestige-driven initiatives to practical outcomes—enhancing connectivity, improving livelihoods, and promoting inclusive development.

She further revealed that more than 500 young Nigerians received training in satellite technology within the past year, while over 50 startups have benefited from NIGCOMSAT’s accelerator programme.


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