Telecom
USPF, Stakeholders Seek New ICT Growth Paradigm
The Universal Service Provision Fund (USPF) was established with a mandate to ‘achieve universal access, universal coverage and universal service through a public-private partnership framework that stimulates economic and social development, private sector investment and market-based provision of basic affordable and quality ICT infrastructure and services to unserved and underserved areas, communities and populations.’
But sadly, the fund since establishment has struggled to meet its basic tenets. However, at a recent stakeholders’ conference in Lagos to preview its Strategic Management Plan – 2013 – 2017, the general consensus was that time has come for a new approach to streamline the Fund with the realities and demands of the ICT market.
Specifically, it was noted that the Fund would henceforth work in tandem with stakeholders and industry operators to give them greater opportunities.
Maikano Abdullahi, secretary of the USPF, agreed in his own words that the Fund had not met its set out goals. He pleaded with stakeholders to give the Fund the benefits of doubt as it was set for a new season of mutual cooperation.
“In the past, there has been this mutual distrust between the operators (especially the major players), and the Fund. Whereas, the Fund expected them (operators) to take what we give them, the operators see things differently. They first look at projects on basis of returns-on-investment. How beneficial would the project be to them economically? I think we have looked at all these issues and we’re ready to dialogue with every player in the industry to ensure full participation,” said Abdullahi.
And to ensure that the new SMP strategy would not be another ‘white Elephant’, Abdullahi said so much work has been included in the new plan which would see an addition of about 3,000 kilometres of fibre and 1000 Base Stations, deployed across Nigeria every year. Admittedly, noted that the last SMP which expired in 2011 had minimal success.
He noted that the last SMP which ran from 2007 to 2011 had targeted provision of 291 community communications centres across the six geo-political zones (which will provide shared access to telephone and internet services in the rural areas).
Sadly, at the close of the period, it ended up providing 224 which represented 77 percent of the target.
It also targeted deployment of 490 base stations which would subsidize the lot that operators have to deploy in rural Nigeria, but it succeeded in awarding subsidies for only 74 BTS which represented just 12 percent of its target.
Consequently, the Fund would now adopt a holistic approach to project selection by determining specific ICT gaps in regional clusters within the country and tailoring its projects and service delivery models to suit identified needs within the clusters. With this approach, the USPF shall ensure that its projects are relevant and appropriate for its beneficiaries,” said Abdullahi.
The new published SMP strategy also emphasized the need for the USPF to actively involve all stakeholder groups in the planning and execution of its programmes and projects in order to effectively address and close Nigeria’s universal access and service gaps.
The aim is to avoid previous operational model collapse due to its one-size-fits-all approach. It is also aimed at arresting operators’ apathy due to perceive non-economic viability by engaging in frank dialogue before a project is awarded, using the cluster-development group model.
It noted that the “USPF’s experience over the past five years and the lessons gleaned from the review of the USP service delivery models in other jurisdictions have indicated that USP projects implemented in rural areas often difficult to sustain doe to high costs associated with operating these projects. In a number of cases, operational costs have been known to outweigh the initial capital outlay required for implementing USP projects. Consequently, the USPF will ensure its subsidies take into consideration operational costs associated with running USP projects over a defined period.
This is expected to provide service providers with a ‘grace’ period within which they will have built up a stable clientele and established demand for the service being provided. The period over which operational support will be granted will be determined based on assessment of the time required for each project to generate revenues capable of meeting its operational costs.”
It also expects to “develop and implement a robust monitoring and evaluation framework which will define the metrics/indicators that would be used to determine effectiveness of UAS programmes and their impact on beneficiary communities. The defined metrics should measure the relative cost and benefits of each programme and must ties back into the overarching objectives of the USPF. “
Abdullahi said “effective monitoring and evaluation of USP projects will facilitate the early detection of potential projects sustainability issues and help to address and rectify these issues early on in the implementation process.”
In arriving at the new SMP, the USPF also took into consideration factors such as Nigeria’s macroeconomic review and outlook, political landscape and outlook and an overview of the country’s telecommunication industry.
On the Macroeconomic review and outlook, the Fund notes that “Nigeria is a middle income and emerging economy which is predominantly agricultural – agriculture is the single largest contributor to GDP and is estimated to have contributed about 40.24 percent of the GDP in 2011.
However, while agriculture remains the largest employer of labour, petroleum, the leading mineral in Nigeria, is currently the major source of revenue (especially foreign exchange) for the country. Macroeconomic reforms introduced within the country since 2003 have created an environment for strong and sustained economic growth over the past few years and Nigeria is currently ranked 30th in the world in terms of GDP (purchasing power parity) as at 2011.”
Although the sustained civil democratic governance since 1999, (the longest since independence in 1960) has led to unprecedented economic growth, especially the attraction of foreign direct investment (FDI), there are grey areas posing as new strands of challenges to this growth paradigm.
Chiefly, the recent escalation of security in North and the not so comfortable calm in the oil and gas producing Niger Delta belt is seen as a major threat to this political-economic stability.
The Nigeria telecom industry’s exponential growth since its deregulation is in 2001 has seen its rise to become the leading market in the Africa and Middle East (MEA) region.
With active subscribers in excess of 102 million, and teledensity of over 70 percent, Nigeria no doubts is seen as a fertile market. But despite these, there has been a steady decline in year-on-year growth in the past two eyar, declining ARPUs and a decrease in minutes of usage (MoU) indicate that the telephony market is Nigeria is fast approaching maturity.
However, data services have seen an upward growth in the last decade. The landing on the shores of Lagos of four submarine cables has increased bandwidth intake, thereby making broadband availability even at cheaper cost.
The mobile segment of the telecom industry continues to rule with much the growth coming from the GSM sector, while the CDMA operators lay prostrate.
The fixed line sector is non-existent in this market as there are no new infrastructural investments and operators seem to stay off course.
The USPF however believe, it could fasttrack development in the ICT sector through three strategic planks, viz-a-viz facilitation of an enabling environment for ICT (especially promotion of rollout of sustainable ICT service in rural, un-served and underserved areas), promotion of universal access and universal service that facilitate connectivity for development and Institutional development.
While stakeholders applauded the new USPF approach, they also expressed cautious optimism over the Funds’ ability to keep to its terms of engagement.
Ms. Funke Opeke, CEO of MainOne Cable, West Africa’s first open access submarine cable operator noted that the Fund’s implementation module has not transited to new reality of large the volume of bandwidth available in the country. She believes it could do better if it effectively engages every operator and stakeholder as promised in the new SMP.
Engr. John Ayodele, director of Post and Telecommunications in the Ministry of Communications Technology notes that government was addressing all grey areas that stand as cog in the wheel of ICT growth in the economy.
Amongst such impediments, the issue of right of way (RoW) is getting urgent government attention, he noted. While admitting that states have rights to legislate on relevant laws to increase revenue base, Ayodele stated all levels of government was discussing to address the issues of RoW and redress the much maligned multiple tax conundrum.
Titi Omo-Etu, former president of association of telecom operators of Nigeria (ATCON), welcomed the new SMP, but cautioned both operators and the Fund to stay on course to achieve the set goals.
“There appears to be a paradigm shift, because in the past, the USPF has failed to communicate effectively with operators. And this shift also calls for operators to give the Fund the benefit of the doubt so that together, we can all work together to achieve our objective of developing the industry of our dream,” said Omo-Etu.
When Okezie Kelechi lost his SIM card, the one he had used since his secondary school days, he didn’t think much of it.
He was shocked weeks later to find out it had been reassigned to someone else.
“I had no idea that if your SIM card has been inactive for more than three months, they will resell it,” he wrote on social media.
“They recycled my SIM card and sold it. Same number, I have had it since secondary school.”
Kelechi’s story is far from unique.
Across Nigeria, more people are waking up to the realities of what is known as SIM recycling, a process where telecommunication companies reassign inactive phone numbers to new users. While allowed under existing rules set by the Nigerian Communications Commission (NCC), the practice is now raising serious concerns over data privacy, fraud, and national security.
A regulatory gap with real-life consequences
Experts in Nigeria’s telecommunications and security sectors are increasingly warning that the NCC’s failure to establish stronger oversight of SIM recycling is endangering millions.
“Beyond the data breaches, this issue posed a big threat to national security. I have always maintained the need for a central data system in Nigeria,” said Daniel Makolo, a retired senior official of the Nigerian Immigration Service to The ICIR.
“There’s much more to this if we don’t pay attention to an appropriate central data mining system that gives us a history of each person in the country.”
Ayodele Ajayi, an engineering professor at the Federal University of Technology, Akure, explained the security risks from his own experience.
“I used to have one Airtel number, but I travelled out. Before I came back, it was reallocated to another user,” he said.
Because phone numbers are tied to Bank Verification Numbers (BVNs) and National Identity Numbers (NINs), reassigning them can expose people to identity theft and financial loss.
The NCC should find a way to notify users when their numbers are at risk of being deactivated, Ajayi urged.
He also recounted an incident he witnessed at a bank, “a woman was narrating how she used to have a particular number but lost it. Somebody saw the number and started using it.
The woman said that before she could act, the person who got the number had started using it and had connived with a bank office to almost wipe out all her savings.
“Upon arriving at the bank to check her account balance, she found out that she had only N50,000 left from about N5 million she had saved up.”
Ajayi emphasised that while recycling is a practical move for telcos to manage limited number availability, more caution is needed.
“Let people know so they can migrate their data to another line, particularly now that almost every channel we use is linked to the phone number, including our bank verification number (BVN)”, he stated.
Kelechi recalled that his number was reassigned to another user despite still being active on WhatsApp.
“I used to wonder why random Hausa boys were always messaging me and calling me baby.
He added that “when I finally visited MTN office in Nigeria, I was told the line has been sold to someone else. E pain me, I no go lie.”
Another social media user Elizabeth Kandi, @DrETKandi warning others about the hidden risks of SIM inactivity alleges that when reassigned the new user can have access to your USSD banking.
“If your Nigerian number was connected to your Nigerian bank accounts for USSD, if you didn’t use it for long, the network provider can disconnect and sell the number to someone else…but that person would be able to access your money via USSD,” Kandi wrote.
Her post underscores the growing fear that recycled numbers, still linked to sensitive services like mobile banking, can open the door to fraud and financial loss
Why do Telcos recycle SIMs?
At a virtual stakeholder meeting in April 2025, NCC Executive Vice Chairman Aminu Maida acknowledged the concern noting that with the evolving landscape, it has become necessary to address emerging challenges that could undermine consumer rights.
He further noted that the Quality-of-Service Business Rules 2024 stipulate that a prepaid line without a revenue-generating event for six months must be deactivated.
This means if a prepaid SIM card goes unused for six months (i.e., no calls, texts, or data use), it must be deactivated.
If the inactivity continues for another six months, the number may be recycled/reallocated to a new user.
In Section 28 of the NCC’s draft business it is stated that all recycled SIMs must be purged of any NIN attached to allow a new user to link their own NIN. But real-world cases suggest that in practice, many recycled numbers are not properly sanitised before reassignment.
The business case for SIM recycling
For telecom operators, recycling isn’t just a technical choice, it’s economic.
Gbenga Adebayo, chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), explained that subscribers do not have ownership rights to SIM cards in their possession, as the telecom operators pay procurement and recurring costs for each registered subscriber.
He further explained that SIM cards are “recycled” to prevent number exhaustion while reducing the cost of generating and maintaining them.
“SIM cards are reassigned to reduce the dormant subscribers, as telcos are profit-oriented organisations,” Adebayo said.
In the exercise of its powers under Section 70 of the NCC Act (2003), the commission made provisions for the development of a new numbering plan for Nigeria. Under the provision, telcos are obligated to pay a sum that is the ‘numbering plan fees’ to maintain their allocated numbers.
Airtel Nigeria has restated its commitment to transparency, customer safety, and regulatory collaboration following recent regulatory enforcement by the Nigerian Communications Commission (NCC).
The NCC had served Airtel Nigeria a notice of sanction over some alleged SIM infractions in Kano State and consequently slammed a fine of N104 million on the telecommunications firm.
NCC had in a letter, addressed to Airtel Nigeria Chief Executive Officer, dated May 26, 2025, signed by Chizua Whyte, head, Legal and Regulatory Services, and Mohammed Dari, acting head, Compliance Monitoring and Enforcement, on behalf of Dr Aminu Maida, executive vice chairman, NCC, titled: ‘Notice of Sanction: Non-Compliance with SIM Registration Directive in Kano,’ where the infractions were spelt out.
According to NCC, Airtel infractions include unauthorised SIM registrations using 198 unapproved devices, resulting in 8,275 registrations outside the 281 verified Airtel shops; premature activation of 63 MSISDNs prior to proper SIM registration, contrary to the provisions of the Registration of Communications Subscribers Regulations 2022; failure to conduct effective eyeballing, leading to 407 fraudulent SIM registrations with multiple NINs, contrary to the provision of the Registration of Communications Subscribers Regulations 2022 and failure to provide satisfactory explanation for SIM registrations conducted between 12.00 a.m and 6.00 a.m.
On the matter, the letter revealed that there were some letter exchanges and subsequent meetings on the infractions between the telecom regulator and Airtel, starting from January 12, 2025, March 19, 2025, March 24, 2025, and March 27, 2025, respectively.
Apparently, after investigations and responses from Airtel, the NCC was not satisfied and this led to the fine of N104 million, which was to be paid within seven days from the date the letter was issued.
Specifically, NCC fined Airtel N5 million, N12 million, N81.4 million and N5 million for the infractions respectively.
Reacting, Airtel, expressed appreciation to the NCC for uncovering the infractions, describing the development as a critical opportunity to strengthen internal processes and further align with national security and regulatory expectations
“We thank the NCC for its vigilance and continued support in protecting the integrity of the telecoms ecosystem. Airtel takes these findings seriously and is already implementing corrective measures,” a spokesperson for the company said.
Only recently, Airtel Nigeria’s CEO recently announced that the company is doubling its investment in the country, focusing on network expansion, fiber-to-the-street rollout, 4G/5G deployment, customer care upgrades, and digital infrastructure security.
These investments reinforce Airtel’s long-term vision of building a resilient and forward-looking telecom network that meets the evolving needs of Nigerians.
“Our systems are constantly evolving to stay ahead of scammers and malicious actors,” the spokesperson added. “This is not just about compliance; it’s about our responsibility to the millions of Nigerians who rely on Airtel daily.”
Airtel Nigeria says it will continue to work closely with the NCC and other arms of government to ensure high standards of service and safety for all telecom users nationwide.
Kenya is celebrating its regulatory ecosystem being ranked as the most progressive in Africa. The International Telecommunications Union (ITU) has ranked the East African country first in its most recent ICT Regulatory Tracker.
ITU’s ICT Regulatory Tracker is an evidence-gathering tool for decision-makers and regulators. It demonstrates the effectiveness of regulatory systems in the age of technology.
The ITU evaluates the design of the national regulatory authority, the scope of the regulatory mandate, the obtaining regulatory environment, and the robustness of the competition framework in member countries.
Kenya received 93 points, up from 92 in 2023, and now leads the continent in best practices for ICT regulations.
Nigeria and South Africa finished second and third, with 92 and 88 points respectively. Malawi, Egypt, Rwanda, Morocco, Uganda, Burkina Faso, and Senegal complete the top 10 list.
Globally, Kenya was ranked 20th out of 194 countries covered.Italy led the rankings, with 100 points.
The regulator, Communications Authority (CA) of Kenya, said the achievement underscored Kenya’s commitment to creating a robust, technology-neutral regulatory environment that supports innovation, affordability and access.
Steve Isaboke, permanent secretary for broadcasting and telecommunications, visited CA Centre in Nairobi following the announcement on Thursday.
“The ranking is a clear testament of the excellent work that CA has done in spearheading Kenya’s digital transformation and driving digital access for all,” he said.
“After 25 years, CA’s regulatory regime has attained maturity, and gained global recognition. This ranking shows that the CA staff and leadership are executing their work diligently.”
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