Probe alleged N26.9bn USPF scandal, SERAP tells Tinubu

Nigeria's telecommunications infrastructure financing faces renewed scrutiny as civil rights organisation SERAP has formally called on President Bola Tinubu to launch an urgent investigation into alleged misappropriation of ₦26.9 billion from the Universal Service Provision Fund (USPF). The accusation, levelled against Communications Minister Dr. Bosun Tijani and USPF Secretary Yomi Arowosafe, strikes at the heart of the nation's digital economy ambitions at a critical juncture.

The **Nigeria USPF scandal** centres on a fund designed to subsidise telecommunications infrastructure in underserved rural and remote communities. Created under the Nigerian Communications Commission (NCC), the USPF operates as a levy mechanism—typically 1% of annual operating revenue from licensed telecom operators—directed toward bridging the digital divide. The alleged ₦26.9 billion gap represents a material leakage from resources explicitly earmarked for broadband rollout, tower deployment, and last-mile connectivity in Nigeria's hinterlands.

## Why Does USPF Fund Management Matter to Investors?

The integrity of Nigeria's telecom infrastructure fund directly impacts the viability of rural expansion strategies pursued by major operators like MTN Nigeria, Airtel, and Globacom. If USPF capital is diverted rather than deployed, private operators face higher capex burdens to cover underserved markets, compressing margins and delaying 5G penetration targets. Foreign portfolio investors in Nigerian telecoms equities view fund governance as a proxy for regulatory credibility—opacity here signals broader risk in sector-specific policy enforcement.

## What Are the Alleged Accountability Gaps?

SERAP's intervention underscores the absence of transparent public disclosure on USPF fund allocation and deployment metrics. Quarterly reports on project completion rates, contractor payments, and beneficiary communities remain opaque, creating space for diversion allegations. Without independent audits published in real-time, stakeholders cannot verify whether ₦26.9 billion reflects genuine project underperformance or systematic misappropriation.

## How Could This Reshape Nigeria's Digital Economy Roadmap?

President Tinubu's stated priority—achieving broadband penetration above 35% and lowering data costs for mass-market adoption—depends on USPF functioning as designed. A credible probe with published findings would restore confidence in the fund's administration and clarify whether infrastructure targets require budget resets. Conversely, if findings are shelved without remedial action, foreign investors will recalibrate risk assessments on Nigeria's telecom sector and question the durability of digital economy pledges.

The scandal also intersects with Nigeria's IMF programme and fiscal discipline expectations. Development finance institutions monitor fund governance in emerging markets as a condition for concessional lending. Unresolved USPF allegations could complicate future infrastructure bonds and multilateral credit lines needed to scale broadband access.

SERAP's demand represents institutional pressure for accountability—a crucial mechanism when executive oversight weakens. Minister Tijani and Secretary Arowosafe now face public obligation to produce detailed fund statements, beneficiary registries, and contractor reconciliations. The probe's outcome will either validate faith in Nigeria's telecom sector governance or expose systemic institutional weakness at a moment when digital infrastructure credibility is paramount.

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