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Nigeria, Others Spend $400m on Local Traffic Annually—Rudman

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Mohammed Rudman, managing director, Internet Exchange Point of Nigeria is a multitalented IT expert who has contributed immensely to the development of the industry in Nigeria. He has worked with Galaxy Information Technology Telecommunications (GTT) now Galaxy Backbone. He also pioneered Jigawa state government rural telephony project, Personal Handy phone System (PHS) before he joined IXPN. 

Internet Exchange Point of Nigeria

Internet Exchange of Nigeria is actually a spot where more than two Internet Service Providers do interconnect. Here, what we do is interconnect our service providers so that they can exchange local Internet traffic locally. What I mean by local Internet traffic is all local files or contents that are hosted in Nigeria locally. All over the world, there are lots of ISPs. The history of Internet Exchange of Nigeria actually began when ex-president Obasanjo visited Tunisia during the World Summit on Information Society; the Internet governance forum recommended that for the next 1 billion people to get connected to the Internet, an exchange point must be built across all the developing countries so that local content can be developed. When he came back, he gave the mandate to the minister of communications and then the Nigerian Communications Commission (NCC) gave us the initial funding to start the Internet Exchange Point of Nigeria. Without an exchange point, it means that all our local traffic would wander before coming home. For example, in the case of Joint Admission and Matriculation Board, University Matriculation Examination candidates in Lagos browsing the board’s website to register, their traffic would go round the world only to come back to Lagos and that does not make sense. Another example is when you have two communities between the border of Cotonou and Lagos and both of them are just living 10km apart, if anyone there wants to make a phone call, it would assume the status of an international call. Why is it an international call? It is because that traffic is not restricted to the Nigerian space. It goes from Nigeria and most likely to British Telecoms; from there it goes to France Telecoms and then to Cotonou because there is no direct relationship between those service providers like GSM operators and that is why GSM international calls were very expensive but when those GSM operators understand the benefit of agreement among them, they would then have a Memorandum of Understanding between themselves and Cotonou. That implies that whenever you make calls from Nigeria to Cotonou, it goes directly there and turns out to be cheaper and that is why you can see that international call rates are dropping. In data terms, that is not what is happening as it still goes round the world before coming back. That is why most Nigerian contents are hoisted abroad because it does not make business sense for them to be hoisted here as they would still be routed round the world before coming back. But with the Exchange point now, it makes more business sense for you to hoist that content in Nigeria; it means that the traffic would not need to go round the world. That is about the Exchange Point and its impact on the country’s super highway.

ISPs and IXPN

We have about 16 Internet Service Providers connected to the exchange; some of them are PTOs like Starcomms, which is connected too. Almost all the bigger players in Lagos are connected and we are waiting now for one of the GSM operators to get connected and they have indicated interest strongly. On the total, we have about 16 that are exchanging traffic and most of them are among the biggest players in Lagos.

Interconnect Voice

We do not interconnect voice; there are other companies that are licenced to do that – interconnect-clearing houses which connect all GSM operators. What we basically do is data connection but as long as you are connecting via Internet Protocol, you can even exchange voice as long as it is VoIP. But that is not our focus; we are really into promoting local content development in Nigeria and ensuring that there are seamless e-transactions in banks. We want to promote all those things using data, which happens to be our area of competence.

Benefit to ISPs

Linkserve and Direct-on-PC are actually Satellite link providers and the truth of the matter is, for some of them, there might not be a direct benefit because they sell Vsat across the place, they sell from the U.S because there hubs are not located in Nigeria. That means they connect in the U.S and sell here. So, there are actually no direct benefits unless for those who sell wireless links – they have a Vsat here and then sell the bandwidth as an ISP using different technologies, to the customers. The reason why I told you it is not beneficial for the Nigerian ISPs is because we do not have a Vsat in Nigeria and if you want to browse a Nigerian site, that Vsat most likely is connected to a hub in the U.S.

400 million dollars are spent on local traffic in Africa alone every year. That is why some African countries have exchange points: South Africa, Egypt, Ghana; all have it. If you take a little part of that money and channel it into developing other areas of economy it is going to be beneficial as it is obtainable in western countries. We can achieve what they have achieved. Most of the ISPs in Nigeria only buy and sell while those abroad have value added services. For data, they provide web hosting, video conferencing, VoIP – these are value added services that go with the Internet but in Nigeria they buy and sell, that is all. People are now reaping benefits from companies like Google, Yahoo that offer free e-mails, which are hosted in the U.S and no matter what you do the traffic will go through there. That is why we are trying to promote local content development in Nigeria so that we can have good programmers and hosting facilities that would stimulate change for the better and the market would start drifting from mere service provision to content provision.

Today, the reason why Internet is expensive is because you have to get connected to the hubs in the U.S and that is tasking. But if they are located here, you do not have to pay anybody and that would eventually drive down the price. The Chinese have their own local content; in China they do not need to go to the U.S that much as they have their own exchange point. They are there and exchanging in tens of gigabytes per second. That is what we are trying to promote in Nigeria – we should understand the concepts of cooperation and competition. We need to cooperate as people so that we can move forward.

The Internet is no respecter of border integrity; if you do not control your traffic locally, it would have to go through other places before coming back to you. So, it is better for us to exchange local traffic than to allow international providers make money off us. That unfortunately, is what is happening today. You can see the proximity between UBA and Sterling Bank buildings, but traffic from Sterling Bank to UBA goes through multiple hubs as much as 16 equipment and that is not right. But I would like to think that things have started changing and that implies that when UBA and Sterling Bank are connected, the traffic between them would go directly. Nigerian Internet Registration Association (Nira) had to register the .ng domain – formerly they were hosted in Ibadan and before they got connected to the exchange point, it goes round the world just for it to get to Ibadan. But later on, they got connected from Ibadan and now their traffic goes through 6 locations instead of the 20 locations that it used to be. You can see it is quite significant and the reason why it is 6 locations is because it is in Ibadan; if it were in Lagos, it might have been reduced to about 2 or 3 locations.

Connection to the Exchange Point

All our service providers are supposed to get connected including those using Vsat. Even Linkserve is connected because they are among stakeholders in the industry and as business trends change, people also change. We still encourage Vsat operators to get connected – as you know, it is good for remote areas – we do not make exemptions.

Exchange and 3G Technology

Yes. As long as you are browsing and using IP, you have the benefit of being connected to the exchange point and especially those GSM operators that are providing 3G; if they get connected to the exchange point, it means that all their subscribers that are browsing using their handsets, browse local contents and the traffic would be local and does not have to be routed round the world before reaching targets. The data goes directly from the handset to the mobile operator and from there, the ISP that is hosting those contents in Nigeria. So, it gives them a lot of advantage more than being directly connected to the Internet switch.

Wimax Technology

You see, in spite of any equipment you have access to, as long as you are browsing on the Internet, you are using IP and as long as you are using IP, it is necessary for you to get connected to the exchange point. As long as you are connected to the Internet, you have an IP address because you browse not with your telephone number but with that IP address that an ISP provided for you. IP contains a lot of things: Voice, data, video, etc.

Exchange Capacity

Well, anybody that connects to the Exchange point gets a minimum of 100mbps port. You can also connect at Gigabyte – that is 1000mega byte per second, which is large. None of these ISPs have the capacity for international practice – none of them uses up to 100meg for their international cycling. But we are giving them that for local traffic, though for some of them, the traffic might be 1Meg but as the traffic builds up; as local content builds up and as we promote the .ng as our national pride and start hosting sites for .ng locally in Nigeria, the content would really grow and what we are charging them is really minimal compared to international prices; it is about less than 1% if they were to pay for international traffic. We have excess capacity and it would take a lot to weigh it down.

Regulating Internet Service Delivery

NCC cannot monitor anyone and find out which customer is getting the right service. I think it is left for the users to complain to NCC so that they can address it. There are Consumer Parliaments where NCC meets with the consumers every month and iron out issues with them. In most parts of the world, they have gateways – platforms that are used to connect to the Internet. But in Nigeria, we barely have such. We do not know what is coming in or going out of the country and that is why so many scam mails are moving all over and people are saying they are from Nigeria. How did they know they are from here? Most of the ISPs in Nigeria actually borrow their addresses from other Internet service providers in the world. That is why connecting to the Exchange point is very necessary and we always encourage people to always have their own IP address so that we can trace and Government can now intervene and trace all scam mails and ensure good quality of service. But without the Exchange point; without the national gateway, you cannot really monitor anything because everybody is totally independent.


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NITDA DG Calls for Innovation-Led Economic Rebirth @ Kano Startup Weekend

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Kashifu Inuwa, the Director General of the National Information Technology Development Agency (NITDA), has called for a fundamental shift in Kano State’s economic strategy, urging stakeholders to embrace innovation, technology and collaboration as the drivers of growth in the 21st century.

Speaking at the Kano Startup Weekend, Inuwa acknowledge Kano’s long-standing reputation as the commercial nerve centre of Northern Nigeria and the wider Sahelian region, noting that its history of trade, enterprise and human capital provides a solid foundation for future growth.

He emphasised that while these strengths powered Kano’s success for centuries, the modern economy now offers even greater opportunities through innovation and technology.

He described innovation as the process of transforming ideas into impactful solutions through commercialization, stressing that when ideas are effectively deployed, they create value, solve societal challenges and generate sustainable economic growth. He noted that Kano’s large market, strategic location and vibrant entrepreneurial culture place it in a strong position to take advantage of innovation-driven opportunities.

According to him, “Innovation is the process of taking an idea from inception to impact. Invention on its own is a cost centre, but when you commercialise an idea, when you turn it into a product or service that solves a real problem and creates value, that is when you begin to drive economic growth and inclusion.”

He noted that the state hosts numerous degree-awarding institutions across federal, state and private ownership, providing a strong base for human capital development. However, he expressed concern that these institutions often operate in isolation from industry, with research outputs rarely translating into commercial or industrial applications.

He explained that innovation does not happen in silos and stressed the need for a strong, interconnected ecosystem that brings together academia, industry, startups, entrepreneurs and government.

According to him, universities should conduct research informed by industry needs, industries should leverage research to improve productivity and competitiveness, and startups should serve as the bridge that converts ideas into market-ready solutions.

He further encouraged entrepreneurs to leverage technology to build businesses that can grow beyond local markets, explaining that innovation-driven enterprises have the power to scale rapidly, create jobs and position Kano competitively at both national and global levels. According to him, digital platforms and emerging technologies now make it easier for startups to reach wider markets and develop solutions that were previously unimaginable.

“You can start your business here in Kano, but your thinking must be global from day one. Technology has removed barriers. With the right skills and platforms, a startup in Kano can build solutions that serve not just Nigeria, but the world,” he noted.

Highlighting NITDA’s ongoing interventions, the Director General outlined the Agency’s commitment to building national innovation capacity through targeted human capital development programmes. He cited the Digital Literacy for All (DL4ALL) initiative, which aims to equip Nigerians across all segments of society with essential digital skills, and the 3 Million Technical Talents (3MTT) programme, designed to produce a pipeline of globally competitive technical professionals in areas such as software development, data analysis and emerging technologies.

He said, “Through DL4ALL, we are ensuring that Nigerians at all levels have the basic digital skills needed to participate in the digital economy, while 3MTT is deliberately building a pipeline of globally competitive technical talents who can drive innovation, create jobs and attract investment.”

He explained that these programmes are key pillars of President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritises skills development, innovation, job creation and inclusive economic growth as pathways to national prosperity. According to him, empowering Nigerians with digital and technical skills is essential for building a resilient economy capable of competing in the global digital landscape.

“President Tinubu’s Renewed Hope Agenda is about investing in people, empowering them with relevant skills and creating opportunities for inclusive growth. At NITDA, we are using digital skills and innovation as tools to translate that vision into real economic impact for Nigerians,” he said.

Inuwa urged all stakeholders in Kano to work together to build a functional innovation ecosystem that can unlock the state’s vast potential. He expressed confidence that with the right mindset, strong collaboration and sustained investment in digital skills and innovation, Kano can reclaim its historic leadership role and emerge as a major innovation and entrepreneurship hub in Nigeria and beyond.


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Sterling Bank Renewable Energy Colloquium Urges Stakeholders to Unlock Nigeria’s Clean Energy Potential

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Sterling Bank Limited on Monday convened stakeholders in the renewable energy industry to explore strategies for accelerating Nigeria’s transition to clean energy and boosting economic growth.

Sterling Bank Renewable Energy Colloquium Urges Stakeholders to Unlock Nigeria’s Clean Energy Potential

L-R: Mr. Ayo Ademilua, President, Renewable Energy Association of Nigeria; Dr. Jekwu Ozoemene, Group Executive, The Alternative Bank; Mr. Biodun Ogunleye, The Honourable Commissioner, Lagos State Ministry of Energy and Mineral Resources; Mr. Dele Faseemo, Group Executive, Coprporate and Investment Banking, Sterling Bank; Engr. Bem Samuel Anyangeuor, Representative, Honorable Minister of Power and Mr. Oluwaseyi Okunnuga, Group Head, Renewable Energy & Sustainability Finance, Sterling Bank at the just concluded Renewable Energy Colloquium held in Lagos recently.

The colloquium, themed “Beyond the Grid: Unlocking New Frontiers in Renewable Energy”, was held in Lagos and brought together policymakers, financiers, and industry leaders to deliberate on priority areas for action.

In his opening address, Managing Director and Chief Executive Officer of Sterling Bank, Mr. Abubakar Suleiman, represented by Mr. Dele Faseemo, Group Executive, Corporate and Investment Banking, said the bank would focus on regulation and financing to expand access to energy.

He noted that energy access remained critical to supporting economic growth and achieving Nigeria’s ambition of building a one trillion-dollar economy.

Delivering a keynote address titled “Scaling Electrification in Nigeria: The REA Impact”, Managing Director of the Rural Electrification Agency (REA), Dr. Abba Aliyu, represented by Mr. Abba Hayatudden, said Nigeria required about 26 billion dollars to bridge its energy deficit.

Aliyu explained that the energy transition strategy integrates grid, mini-grid and off-grid technologies to achieve universal, reliable and sustainable energy access while aligning with national development and climate goals.

Minister of Power, Mr. Adebayo Adelabu, represented by Engineer Samuel Ayangeaor, commended Sterling Bank for convening the dialogue.

He said renewable energy and rural electrification were central to the Federal Government’s Renewed Hope Agenda.

“The Ministry of Power has continued to expand electricity access to underserved communities to drive economic growth, foster industrial activity and create jobs across the nation,” Adelabu said.

Lagos State Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye, highlighted the state’s efforts in renewable energy, including the ongoing two-gigawatt grid-scale solar project.

He described it as the most ambitious energy transformation ever undertaken by the state.

Chief Executive Officer of Sterling One Foundation, Mrs. Olapeju Ibekwe, urged participants to move beyond communiqués and act with intention to deliver meaningful impact.

The colloquium featured panel sessions on financing and scaling green energy solutions in Africa, among other discussions.


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Cellulant Taps Freddie Oduro to Lead Enterprise Payments Expansion in Ghana

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Mr. Freddie Oduro, New Country Manager for Ghana.
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Cellulant, a leading Pan-African payments company enabling seamless digital transactions across Africa, has appointed Mr. Freddie Oduro as its new Country Manager for Ghana.

Cellulant Taps Freddie Oduro to Lead Enterprise Payments Expansion in Ghana

Mr. Freddie Oduro, New Country Manager for Ghana.

Freddie’s appointment is a key step in Cellulant’s broader strategy to deepen its presence in priority markets by accelerating the acquisition of in-country enterprise businesses and strengthening its position as the payments partner of choice in Africa.

Freddie brings over a decade of commercial and strategic leadership experience in the telecommunications and financial services sectors, with expertise in  sales, business operations, and market expansion.

In his new role, he will drive merchant acquisition, strengthening partnerships, oversee collections and payout operations, while ensuring strong internal controls and regulatory compliance.

He joins Cellulant from Payaza and previously served as Sales Director at Cellulant, where he helped significantly expand the company’s footprint in Ghana.

Cellulant has been powering payments in Ghana for leading brands in sectors like e-commerce, utilities, oil and gas and retail, helping them offer their customers a wide range of secure digital payment options.

“We are happy to welcome Freddie back to the Cellulant family,” says Richard Gesimba, Chief Revenue Officer at Cellulant. “Ghana remains a critical market for us, with immense potential driven by rising digital payments adoption.

“As we sharpen our focus on in-country enterprise customers, Freddie’s leadership and industry insight make him the ideal person to steer our Ghana operations.”

The appointment comes at a transformative time for the company. Following a strategic shift between late 2023 and early 2024, focused on streamlining operations, doubling down on enterprise payments, and strengthening customer intimacy, Cellulant achieved profitability in 2024 and continues to build on this momentum.

The company now processes close to 4.5 million transactions daily for businesses across Africa, reinforcing its position as a fintech leader.

“I am honoured to return to Cellulant and lead the Ghana team at such a defining moment,” says Freddie, Country Manager for Cellulant Ghana. “Ghana presents a tremendous opportunity.

“We will ramp up our efforts to sign on more local merchants, strengthen our compliance and control frameworks, and introduce innovative solutions like Tingg Edupay, our automated school fee management solution that eliminates reconciliation delays by validating payments in real time and instantly updating student accounts.

“We will build on Cellulant’s strong foundation to deliver real value, reliability, and economic impact.”

Ghana’s digital payments sector continues to grow steadily, supported by increased mobile money usage and a progressive regulatory environment. Between January and October 2025, the value of mobile money transactions hit about GH¢ 3.6 trillion, up sharply from GH¢ 2.37 trillion in the same period of 2024.

Registered mobile money accounts now exceed 79 million, demonstrating strong consumer and business confidence in digital financial services and in turn creating many opportunities for payment innovation.

This leadership appointment underscores Cellulant’s commitment to building a resilient, high-performance organisation geared towards playing a pivotal role in the next era of Africa’s digital economy.

Looking ahead to 2026, Cellulant plans to further enhance the user experience on its payment platform, Tingg, and expand its  footprint across Ghana.


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