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Competition in Undersea Cables Will Promote Reliability-Rudman

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Benjamin Dikki, director-general of the Bureau of Public Enterprises, (BPE)
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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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New Tax Law Empowers NRS to Fine Offenders up to N10m

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The newly enacted Nigeria Tax Administration Act, 2025, has empowered the Federal Inland Revenue Service (FIRS), renamed Nigeria Revenue Service (NRS), to impose fines for individuals and companies for failing to register, file returns, use tax technology, or disclose basic information like a change of business address.

New Tax Law Empowers NRS to Fine Offenders up to N10m

The Act is among the tax laws signed by President Bola Tinubu on June 26.

The tax administration law is expected to take effect from January 1, 2026, under a renamed agency — the Nigeria Revenue Service (NRS), currently known as the FIRS.

The Act, which is an updated version of previous fragmented tax enforcement provisions, outlines a comprehensive list of offences and corresponding penalties, with fines ranging from N10,000 to N10 million, as well as prison terms of up to 10 years for serious breaches.

Under the general offences and penalties section of the law, a taxable person who fails to register with the relevant tax authority is liable to a N50,000 fine in the first month and N25,000 for each subsequent month of default.

The Act stressed that companies that award contracts to unregistered vendors will face a N5 million penalty.

The law also imposes a N100,000 fine for failure to file tax returns, plus N50,000 monthly for as long as the failure continues.

“A taxable person who fails or refuses to file returns or knowingly files incomplete or inaccurate returns to the relevant tax authority in accordance with the provisions of this Act, shall be liable to pay an administrative penalty of (a) 100,000 in the first month in which the failure occurs; and (b) N50,000 for each subsequent month in which the failure continues,” the Act reads.

“A taxable person who Failure to books (a) fails to keep accounts, books and records of business transactions and income, to allow for the correct ascertainment of tax and filing of returns to the relevant tax authority; or (b) upon request by the relevant tax authority, fails to provide any record or book prescribed in this Act shall be liable to pay an administrative penalty of- (i) in the case of a person other than a company, N10,000, and (ii) in the case of a company, N50,000.”

Also, the law states that failure to notify the tax authority of a change of address within 30 days of such change, giving a wrong address, or failing to comply with the requirement for notification of permanent cessation of trade or business under the relevant tax laws shall be liable to an administrative penalty.

“A taxable person who fails to notify the relevant tax authority – Failure to notify change of address (a) N100,000 for the first month in which the failure occurs; and (b) 45,000 for each subsequent month failure persists,” the law reads.

In a bid to modernise tax compliance, the Act makes it compulsory for businesses to allow the Federal Inland Revenue Service (FIRS) to deploy fiscalisation technology or face a N1 million fine for the first day of refusal and N10,000 for each day after.

Any business that fails to process sales through the fiscalisation system will also be fined N200,000, pay 100 percent of the tax due, and accrue interest at the prevailing Central Bank of Nigeria (CBN) monetary policy rate.

The Act is especially punitive toward those who fail to deduct or remit taxes.

“A person that deducts, collects, or withholds any tax under this Act, and fails to remit the amount deducted, collected, or withheld by the 21st day of the month immediately succeeding the month in which the amount was deducted, collected, or withheld, is liable to pay,” it added.

“Failure to remit tax deducted source or self-account (a) the amount deducted, collected or withheld but not remitted; (b) an administrative penalty of 10% per annum of the tax deducted, collected or withheld but not remitted; and (c) interest at the prevailing Central Bank of Nigeria monetary policy rate. “A person convicted of any of the offences under this section shall be liable to a term of imprisonment not exceeding three years, or a fine of not less than the principal amount due plus a penalty of not more than 50% of the sum, or both.

“A person who (a) fails to comply with the requirements of a notice served under this Act or any other tax law; (b) fails to attend or provide answers to a notice, summons or process served under this Act or any other tax law; or (c) having attended, fails to answer any question lawfully put to him, is liable to an administrative penalty of N100,000 in the first day of default and N10,000 for every subsequent day where the default.”


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Taskforce Arrests Six for over Fake Lottery Scam

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Lagos State Environmental and Special Offences Enforcement Unit (Taskforce) has apprehended six suspects allegedly involved in a fraudulent lottery scheme that targeted unsuspecting residents at Iyana-Ipaja.

Taskforce Arrests Six for over Fake Lottery Scam

Those arrested include Amaike Nelson, Kenneth Opuana, Oguntade Olusegun, Ogologo Obi, Goodluck Abel, and Oluwafunmilayo Adebimpe. The syndicate was tracked down following intelligence reports about their activities.

According to the taskforce, the suspects lured a 19-year-old student, identified as Rukayat Kamilu, into a manipulated street game. During the encounter, the group reportedly coerced her into surrendering her mobile phone and personal belongings.

The victim said one of the suspects, later identified as Oguntade Olusegun, posed as a confused passer-by seeking help to pick a “winning number.” After she got involved, her phone was seized, and she was allegedly pressured to pay N100,000 to retrieve it.

Acting on a tip-off, operatives led by CSP Adetayo Akerele, chairman, stormed the area and arrested the suspects. Several empty Android phone boxes, allegedly used as props in the scam, were recovered during the operation.

Condemning the criminal act, Akerele assured residents that the agency is intensifying its crackdown on street scams across the state.

“Our responsibility is to safeguard the lives and property of Lagosians. We will leave no room for such fraudulent activities to thrive,” he stated.

The suspects were subsequently arraigned before a Magistrates’ Court on charges bordering on gambling, extortion, theft, and conspiracy.

They all pleaded guilty. The court ordered that they remain in custody pending further hearing, scheduled for August 7, 2025.


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FG Plans N50m STEEM Grant to Support Student Innovation in August

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In a giant stride to support innovation, entrepreneurship and economic transformation, the Federal Government is set to unveil a N50 million grant for Science, Technology, Engineering, Mathematics and Medical Sciences (STEEM) students in Nigeria’s tertiary institutions.

The project, which is referred to as the Student Venture Capital Grant (S-VCG), is a pioneering initiative designed to empower the students towards building the next generation of scalable, job-creating ventures.

According to a statement by the Director of Press and Public Relations in the Ministry of Education, Folashade Boriowo, Friday, the initiative will be formally unveiled in August by the Minister of Education, Dr. Tunji Alausa.

Boriowo stated that the minister made the disclosure during a stakeholders’ engagement session held in Abuja in the presence of vice-chancellors, provosts, rectors, student leaders, academic staff, and development partners, and will chart a collective course for nurturing student-led innovation.

The statement noted that the grant targets full-time undergraduate students in STEMM disciplines (Science, Technology, Engineering, Mathematics and Medical Sciences), specifically those in 300 level and above.

“Each selected student-led project will be eligible to receive startup funding of up to N50 million, along with access to mentorship, incubation services and business development support.

“The initiative will be implemented in partnership with the Bank of Industry (BoI) to ensure financial transparency, impact measurement and effective project execution.

“S-VCG is not just a grant. It’s a launchpad for bold, young innovators to lead Nigeria’s industrial and technological transformation,” said Alausa.

Speaking at the session, the Minister of State for Education, Prof. Suwaiba Sa’id Ahmad, described the grant as a strategic investment in Nigeria’s knowledge economy.

“We’re building a stronger, more competitive future by supporting innovation from the ground up,” she said, adding that the programme’s design was informed by months of consultation with students, faculty and institutional leaders.

Participants at the event welcomed the STEMM-Up Grant as a timely, strategic and high-impact initiative that will drive youth innovation, tackle graduate unemployment, and position Nigeria as a hub for student-led entrepreneurship in Africa.

 


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