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    Home»Business»SERAP Drags Federal Government to Court Over Alleged Diversion of ₦26.9bn USPF Funds
    Business

    SERAP Drags Federal Government to Court Over Alleged Diversion of ₦26.9bn USPF Funds

    The EditorBy The EditorMay 10, 2026No Comments2 Mins Read
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    LAGOS, Nigeria — The Socio-Economic Rights and Accountability Project (SERAP) has escalated its campaign for transparency in the telecommunications sector, formally demanding that President Bola Ahmed Tinubu initiate a high-level probe into the alleged diversion of ₦26.9 billion from the Universal Service Provision Fund (USPF).

    The demand follows a damning audit report from the Office of the Auditor-General of the Federation, which flagged “gross financial irregularities” and a lack of accountability within the fund. The USPF, established under the Nigerian Communications Act 2003, is funded by a portion of the annual turnover of telecommunications operators. Its primary mandate is to provide subsidies for the deployment of ICT infrastructure in rural, unserved, and underserved areas—regions that are commercially non-viable for private operators.

    The Mechanics of the Alleged Breach

    In a detailed petition dated May 9, 2026, SERAP outlined that the missing billions were purportedly tied to projects that exist only on paper.

    “The public treasury is being treated like a private ATM by some officials,” said Kolawole Oluwadare, SERAP’s Deputy Director. “Our investigation, based on the Auditor-General’s findings, shows that contracts were awarded to companies with no technical capacity, and in many instances, payments were made in full for projects that never broke ground.”

    Specific allegations include:

    • Ghost ICT Centers: Funds allocated for 150 rural digital literacy centers across the six geopolitical zones remain unaccounted for.
    • Non-Remittance of Interest: Accrued interest on the USPF’s commercial bank accounts, totaling billions, has reportedly vanished from the books.
    • Procurement Violations: Bypassing the Bureau of Public Procurement (BPP) guidelines to favor “politically exposed” contractors.

    The Digital Divide at Stake

    The timing of this scandal is particularly sensitive as Nigeria aims to achieve 70% broadband penetration by 2027. Experts argue that every naira diverted from the USPF is a blow to the millions of Nigerians in remote villages who remain disconnected from the digital economy, healthcare, and education.

    “If the President fails to act within seven days to direct the Attorney General and anti-corruption agencies to investigate these allegations and prosecute suspects, we will take all appropriate legal actions to compel the government to comply,” Oluwadare warned. As of Sunday, the Ministry of Communications, Innovation, and Digital Economy has not responded to requests for comment.


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    Eastern Nigeria Chronicle is an independent digital news publication dedicated to providing accurate, timely, and impactful journalism for the people of Eastern Nigeria — Beyond the River Niger, stories abound, we intend to honestly tell you about them. From Abia, Anambra, Ebonyi, Enugu, Imo States, to the coastal States of Akwa Ibom, Rivers, Delta, Bayelsa, we are the Authentic Voice of the East.

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