For more than a decade, billions of naira earmarked to bridge Nigeria’s digital divide have remained locked away from the communities they were meant to serve, as financial records of the Universal Service Provision Fund (USPF) show that ₦3,209,353,597.55 has remained unrecovered from a private mortgage institution.
The money originated from an ₦1.8 billion investment made by the USPF in Aso Savings and Loan Plc in June 2013 at an annual interest rate of seven per cent. The investment was made by the Fund’s management at the time as part of its financial operations.
However, in 2015, the Federal Government directed Ministries, Departments and Agencies (MDAs) to close commercial bank accounts and transfer their balances to the Treasury Single Account (TSA). The USPF investment in Aso Savings and Loan Plc was not transferred, and the funds remained with the mortgage institution.
By May 2025, when a periodic review of the investment was conducted, Aso Savings and Loan Plc had not repaid either the principal or the accrued interest. The amount outstanding had risen to ₦3,209,353,597.55, representing the original ₦1.8 billion investment and accumulated interest.
Moreso, the records showed that Aso Savings and Loan Plc’s own financial statements had identified going-concern challenges as far back as 2013, the same year the USPF placed the ₦1.8 billion with the institution. The disclosure was contained in the company’s financial statements and formed part of the information considered in assessing the investment.
The USPF management acknowledged that the investment decision was made by the management of the Secretariat at the time in 2013. According to the records, correspondence demanding repayment from Aso Savings and Loan Plc was not sent until September 2025, more than 12 years after the original investment.
The mortgage institution subsequently responded by outlining how it intended to remit the funds, without confirming that repayment had been made. The Auditor-General’s assessment of the response was recorded as “unsatisfactory,” while the findings were stated to remain valid until the recommendations were implemented.
Additionally, Section 119(1) of the Nigeria Communications Act 2003 requires the USPF to appoint a competent and independent fund manager responsible for prudently investing the Fund’s cash reserves while safeguarding the underlying capital. The continued retention of the ₦1.8 billion investment in Aso Savings and Loan Plc, despite the financial difficulties disclosed by the institution and the prolonged failure to recover the funds, was therefore cited in relation to the statutory requirement for prudent management of the Fund’s reserves.
Furthermore, Paragraph 112(i) of the Financial Regulations 2009 places a duty on the Accounting Officer to ensure the safety and proper maintenance of government assets. The failure to recover the investment and the accrued funds over the period covered by the findings was cited as a breach of this responsibility.
Paragraph 3115 of the Financial Regulations 2009 was also invoked in connection with the failure to properly manage public funds, with the regulation prescribing sanctions for failures in the management and safeguarding of government resources.
The investment has remained unresolved during the tenure of Mr. Yomi Arowosafe, who has served as Secretary of the USPF throughout the period under review and remains in the position. The current USPF management has inherited the outstanding recovery of the ₦3.2 billion and the recommendations arising from the findings.
The USPF was established to support the expansion of telecommunications services to underserved and unserved areas of Nigeria. The unresolved investment therefore remains recorded within the Fund’s financial obligations while the money has not been recovered for the purposes for which the Fund was established.
Source: …Secretsreporters