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ISPs Shun IXPN, Prefer Overseas Exchanges

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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.

 

 


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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Police Suspends eMotor Registry Enforcement Following Outcries

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Kayode Egbetokun, inspector general of police, has announced the suspension of the the enforcement of electronic central motor registry registration otherwise e-CMR for vehicle owners in the country.

Police Suspends eMotor Registry Enforcement Following Outcries

Muyiwa Adejobi, force spokesperson, had on Saturday said the IG ordered that the enforcement of the e-CMR should commence on July 29.

The enforcement order sparked an outcry from Nigerians, who accused the police of creating an opportunity to extort vehicle owners.

John Aikpokpo-Martins, chairman of the Nigerian Bar Association (NBA) Section on Public Interest and Development Law, said the directive by Egbetokun to begin enforcing the digitised Central Motor Registry was a blatant disregard for the rule of law.

But in a statement on Sunday, Adejobi announced that the IG has suspended the enforcement of the e-CMR.

He added that there was the need to sensitise the citizens on the initiative, which he said was designed to secure vehicles.

He said, “Following the reconfiguration and commencement of the electronic central motor registry registration process the Police have deemed it necessary to highlight the benefits and effectiveness of the e-CMR initiative which is designed to ensure the safety and security of all types of vehicles including motorcycles by collating data imputed into the system by vehicle owners and acting on such to flag the vehicles if reported stolen.

“The e-CMR will provide a firsthand database to the Force for curbing vehicular crimes as dedicated officers can access real-time comprehensive data of every vehicle on their tablets.

“Similarly, the e-CMR will prevent multiple registrations of vehicles and serve as a database to collate biometric and other data of vehicle owners and individuals, adding value to the national database and incident report portal generated from other Ministries, Departments and Agencies towards general security.”

Adejobi denied that the e-CMR was a revenue-generating platform.

He said, “Furthermore, contrary to news making the rounds and insinuations about the e-CMR, the NPF wishes to state categorically that the e-CMR is not a revenue-generating platform but an initiative to digitalize policing for effectiveness and general safety of lives and property of Nigeria residents. “

Adejobi said the IG ordered the immediate suspension he had earlier given.

He stated, “The Inspector-General of Police, IGP Kayode Egbetokun has ordered an immediate suspension of the proposed enforcement of the e-CMR initially scheduled to commence on the 29th of July, 2024. This is to give ample opportunity for mass enlightenment and education of all citizens and residents on the process, benefits and effectiveness in solving the challenge of vehicle-related crimes, and protection of individual and corporate vehicle ownership.”

Adejobi sought the understanding of the citizens and key into the initiative.


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Osagie Okunbor, Shell Nigeria MD Honoured for Exemplary Leadership

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Osagie Okunbor, managing director, Shell Petroleum Development Company of Nigeria Limited, and country chair, Shell Companies in Nigeria, has been recognised for his “Invaluable contributions to the  Nigerian energy sector and his service to humanity.”

Osagie Okunbor, Shell Nigeria MD Honoured for Exemplary Leadership

Former Deputy Governor, Central Bank of Nigeria, and Director, Heritage for Life Foundation, Tunde Lemo (left), presenting the Foundation’s  Award for Exemplary Leadership and Service to Humanity to the Managing Director, Shell Petroleum Development Company and Country Chair, Shell Companies in Nigeria, Osagie Okunbor, at a ceremony in Lagos on Thursday.

Osagie received the Award for Exemplary Leadership and Service to Humanity from a Lagos-based NGO, Heritage for Life Foundation, at a ceremony held in Lagos.

Tunde Lemo, director of the Foundation, and former deputy governor, Central Bank of Nigeria (CBN), handed out the award which he said was instituted to promote “moral qualities and attitudes pivotal to the growth of a stable and functional society” by recognising individuals who exbibit the virtues.

An elated Okunbor said: “I’m pleased at this recognition which calls for greater commitment to the highest standards of leadership and service to humanity. With the support of my colleagues and other stakeholders, I hope to continue to  contribute to the development of our country.”

The award from the foundation was the second bestowed on the longest serving Country Chair of Shell companies in Nigeria in the past month.

At the 60th anniversary of the Nigerian Institute of Public Relations (NIPR), Okunbor was conferred with the Diamond Ambassador of Brand Nigeria as part of NIPR’s Diamond Jubilee National Awards.

Presenting the award, Dr. Ike Neliaku, president and chairman of Council, NIPR noted that Okunbor earned the award having demonstrated exceptional leadership as Chairman of the largest energy company in Nigeria that had made significant contributions to the socio-economic development of Nigeria in more than seven decades.

Okunbor’s contributions to the energy sector are the highlights of a career in Shell which has seen him serve in Nigeria, the UK, Brunei and the Netherlands before his appointment as Managing Director, SPDC and Country Chair in 2015.

In May, the executive council of the Nigerian Gas Association recognised Okunbor for “outstanding contributions towards the advancement of Nigeria’s gas sector.”

 

 

 

 

 


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NNPC Cuts Investment In Dangote Refinery From 20 Percent to 7.2 Percent 

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Nigerian National Petroleum Company (NNPC) Limited has reduced its investment in the Dangote Refinery from 20 per cent to 7.2 per cent, according to Aliko Dangote, chief executive officer, Dangote Refinery.

NNPC Cuts Investment In Dangote Refinery From 20 Percent to 7.2 Percent 

Aliko Dangote

Dangote, who made this known in Lagos on Sunday and the NNPC confirmed the development, saying it assessed its investment portfolio to align with its goals.

“NNPC no longer owns a 20 per cent stake in the Dangote refinery. They were met to pay their balance in June, but have yet to fulfil the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote said.

In September 2021, NNPC had acquired a 20 per cent stake in the Dangote Refinery for $2.76 billion.

NNPC had initially financed the 20 per cent stake through a $1.036 billion funding from Lekki Refinery Funding Limited, of which $1 billion was paid to Dangote Refinery and $36 million was for transaction costs.

The remaining $1.76 billion was to be paid through a combination of a $2.5/barrel discount on 300,000 barrels per day of crude oil supplied to the refinery, and 100 per cent of NNPC’s portion of any dividends declared by the refinery.

Reacting to the statement by Dangote, the NNPC in a press release on Sunday evening, said the company “made a commercial decision to cap our investment at the amount already paid.”

“Several months ago, we made a commercial decision to cap our investment at the amount already paid. This decision was taken by NNPC Ltd and has no impact on our business.

“NNPC Limited periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals.

“The decision to cap its equity participation at the paid-up sum was made and communicated to Dangote Refinery several months ago,” Olufemi Soneye, spokesman, NNPC, said in a statement on Sunday evening.

 

 

 

 

 

 

 


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