Nigeria must take control of its digital infrastructure and data to achieve digital sovereignty, according to Malam Kashifu Inuwa, Director-General of the National Information Technology Development Agency (NITDA). Inuwa emphasized that local data hosting is essential for attracting hyper-scale investments and positioning Nigeria as a leading technology hub in Africa.

Nigeria is undergoing a digital revolution, with businesses, government agencies, and individuals generating vast amounts of data daily. However, much of this data is stored in foreign servers managed by global tech giants like Amazon Web Services (AWS), Google Cloud, and Microsoft Azure. While offshore data hosting offers scalability and efficiency, it comes with significant hidden costs that could hinder Nigeria’s economic growth, digital sovereignty, and national security.

Data refers to raw facts, figures, and information that can be processed, analyzed, and used for decision-making. It can exist in various forms, such as numbers, text, images, videos, and audio. In the digital world, data is generated through various activities, including online transactions, social media interactions, emails, sensor readings, and government records.

In today’s digital economy, data is often referred to as “the new oil” because of its value in driving innovation, decision-making, and economic growth. Companies and governments use data for various purposes, such as improving services, predicting trends, enhancing security, and personalizing user experiences. However, where data is stored and how it is managed has significant implications for privacy, security, and national sovereignty, making local data hosting a crucial consideration for countries envisioning growth.

Nigeria’s reliance on foreign data hosting services has significant economic drawbacks, particularly in the areas of capital flight, job creation, and local tech industry growth. The dependence on cloud service providers such as AWS, Google Cloud, and Microsoft Azure results in billions of naira flowing out of the country each year. Instead of reinvesting in local infrastructure, businesses and government agencies continue to pay substantial fees to international companies, weakening Nigeria’s digital economy.

According to Statista, Nigeria is projected to spend around $1.11 billion on public cloud services in 2025, with this figure expected to grow significantly over the next few years due to increasing digital transformation initiatives in the country. This rising expenditure underscores the urgent need to develop a strong local cloud infrastructure to retain wealth and stimulate economic growth.

The lack of local data hosting infrastructure also limits job creation, particularly in the IT sector. Skilled professionals such as cloud engineers, cybersecurity experts, and data analysts often seek opportunities abroad or settle for jobs that do not fully utilize their expertise. Furthermore, Nigeria’s dependence on foreign data centers stunts the growth of its local tech ecosystem. Homegrown cloud service providers struggle to compete against well-established global corporations, leading to a lack of investment in domestic data solutions. Without a competitive local ecosystem, Nigerian startups and enterprises remain reliant on external infrastructure, which not only increases operational costs but also limits their ability to scale.

Nigeria’s reliance on foreign data hosting services extends beyond economic implications to critical security and sovereignty risks. Storing vast amounts of sensitive data outside the country exposes Nigeria to external regulations, potential surveillance, and service disruptions that could have far-reaching consequences.

One major concern is data privacy. When Nigerian user data is stored on foreign servers, it becomes subject to the laws of the host country. For instance, the U.S. CLOUD Act allows American authorities to access data stored by U.S.-based companies, regardless of where the data is physically located. This raises concerns about the confidentiality of personal, corporate, and government information, as Nigeria has limited control over how its data is accessed and used by foreign entities. Without robust local data hosting policies, citizens’ privacy remains vulnerable to external interference.

Many Nigerian government agencies and financial institutions rely on offshore data storage, creating significant vulnerabilities. Dependence on foreign cloud providers means critical information is subject to external control, leaving the country exposed to potential disruptions. In the event of cyberattacks, diplomatic disputes, or sanctions, access to essential data could be restricted, affecting governance, financial stability, and public services.

Regulatory enforcement also becomes more challenging when data is stored outside the country. Nigerian laws on data privacy, cybersecurity, and digital transactions are difficult to impose on foreign-hosted platforms, as compliance is subject to the legal frameworks of other nations. This weakens the government’s ability to protect citizens’ data, monitor cyber threats, and ensure digital sovereignty.

AI and big data analytics thrive on seamless access to vast amounts of information, enabling organizations to develop smarter solutions, optimize operations, and predict trends. Reliance on foreign-hosted data creates a dependency on international tech firms for AI tools and computing power, limiting Nigeria’s ability to build robust and functional homegrown AI models tailored to the country’s unique economic and social challenges. Local AI startups struggle to scale because they must rely on expensive and often restrictive foreign cloud services, making innovation costly and less competitive.

These challenges highlight the urgency of NITDA’s push for local data hosting as a crucial step toward Nigeria’s digital growth. To secure the country’s digital future, Nigeria must prioritize local data hosting by investing in domestic cloud infrastructure and enacting policies that encourage data localization. The government should provide incentives for private sector investments in data centers, including tax breaks and funding support for local cloud providers. Strengthening Nigeria’s data infrastructure will not only reduce reliance on foreign platforms but also create a competitive digital ecosystem that attracts global technology firms.

Regulatory reforms are also essential to ensuring effective data governance. Implementing strict data protection laws that mandate local storage for sensitive government, financial, and corporate data will enhance security and sovereignty.

Beyond infrastructure and regulation, Nigeria must build local expertise in cloud computing, AI, and data security. Encouraging universities and tech hubs to develop specialized training programs will create a skilled workforce capable of managing and securing domestic data assets.

NITDA’s push for local data hosting comes at a crucial time, offering Nigeria an opportunity to take charge of its digital future. With the right policies and investments, the country can reduce reliance on foreign data centers, empower its tech industry, and position itself as a leading player in Africa’s digital economy.

Shuaib S. Agaka, a tech journalist, writes from Kano State.

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As mobile internet usage surges across Nigeria, managing data consumption has become a pressing concern for many users, JUSTICE OKAMGBA writes …

Rapid data depletion, high costs, and concerns about billing transparency have become common complaints among telecom customers in Nigeria.

The increasing reliance on mobile internet for streaming, social media, and other online activities has intensified these frustrations.

In September alone, Nigerians consumed a staggering 850,249.09 terabytes of data, underscoring the scale of the problem.

While the country’s growing digital engagement highlights significant opportunities, it also poses challenges for both the economy and the nation’s digital infrastructure.

The Executive Vice Chairman of the NCC, Dr Aminu Maida, noted that Nigerians spend an average of 4 hours and 20 minutes daily on social media—significantly higher than the global average.

He observed that while this level of digital interaction is indicative of societal transformation, it also raises concerns about affordability and sustainability.

Maida explained that Nigeria is not alone in grappling with these challenges, as other nations, such as Eswatini, are also working to address similar issues.

The advent of high-speed networks like 4G and 5G has fueled data consumption, with ultra-high-definition devices further compounding the issue.

“Viewing a photo on Instagram required just 100 kilobytes five years ago,” Maida remarked, “but with advancements in camera resolutions, the same image now consumes two to four megabytes.”

Experts and consumers alike stress the importance of consumer education to manage data consumption better. Below are key recommendations from technology professionals and experienced users.

Restrict background data usage

An Android user Hugh Rich, advised, “Restrict background data usage in apps by navigating to settings and selecting data usage.

“From there, use the three-dot menu to choose ‘restrict background data’ and specify the apps to limit. Be cautious, though—restricting data for apps like WhatsApp or email clients may delay notifications until the app is actively opened.” He also suggested turning on data saver options in browsers, like Chrome.

“In Chrome, tap the three-dot menu, go to settings, and enable the data saver option to reduce data usage when browsing.

“Additionally, always connect to Wi-Fi whenever possible; leaving Wi-Fi enabled doesn’t significantly drain the battery but saves a substantial amount of mobile data, Rich advised.

Optimise wi-fi usage

Automation specialist Tom Duggan emphasized leveraging Wi-Fi connections whenever available. “Ensure updates are configured to occur over Wi-Fi only,” Duggan explained.

“Automatic updates can quickly exhaust your data. Also, consider uninstalling apps you no longer use, and if you’re in a roaming area, switch to airplane mode to avoid unnecessary data charges.”

Reduce high-resolution streaming

A computer consultant, Lew Murray highlighted the impact of high-resolution content on data consumption.

“Watching a movie in standard resolution (480p) consumes less than 300 megabytes,” he said.

“In contrast, streaming the same film in 4K resolution can use up to 4 gigabytes. The same applies to online gaming and browsing. Opting for standard resolution where possible can make a big difference,” he wrote on Quora.

Turn off mobile data when unnecessary

Murray also recommended turning off mobile data when not in use.

“Your phone will still function for basic tasks without mobile data. Switching off mobile data when connected to Wi-Fi or during idle periods can significantly reduce consumption.”

Disable automatic updates, location tracking

A frequent traveler, simply identified as Savannah, shared her approach to saving data while on the move.

“I noticed my data usage spikes when traveling due to apps like Maps and Google Translate. To counter this, I turn off data when not in use, disable automatic updates, and ensure no apps running in the background—especially those requiring location tracking.

Savannah added that using offline tools, such as a translator device, further reduces reliance on mobile data.

Addressing broader concerns

As digital consumption continues to grow, experts stress the need for infrastructural improvements and pricing strategies to ensure data remains accessible to all.

The NCC has acknowledged the urgency of these concerns, noting that Nigeria is at a critical juncture in its digital evolution.

The commission continues to engage telecom operators to address billing transparency and explore more consumer-friendly data plans.

Maida remarked that while these efforts aim to alleviate consumer frustrations, users also have a role to play by adopting smarter data practices.

“An informed consumer is better equipped to manage data usage effectively,” he said.

Other countries facing similar challenges, such as Eswatini, provide valuable insights. By fostering collaboration between regulators, service providers, and technology innovators, Nigeria can adopt best practices to improve the affordability and efficiency of its mobile internet services.

Conclusion

The growing reliance on digital platforms in Nigeria demands proactive strategies to balance connectivity with affordability.

While technological advancements like 5G bring numerous benefits, they also necessitate greater awareness among users to prevent excessive costs.

By implementing practical tips, such as restricting background data, optimizing Wi-Fi usage, and minimizing high-resolution streaming, consumers can take control of their data consumption.

However, addressing the root causes requires collective action from stakeholders across the telecommunications sector.

As Nigeria continues its journey toward digital transformation, managing data consumption will rema

in a critical aspect of ensuring inclusive and sustainable growth for all citizens.

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By: Sonny Aragba-Akpore

TECHDIGEST: With a recent increase by about 10 percent of the cost of data on their networks, MTN Nigeria and Airtel Africa, both big players in Nigeria have served notice that subscribers should brace up to pay more to access the Internet on these networks.

This increase is a contradiction to the Nigerian National Broadband Plan 2020 to 2025, where the Federal Government seeks to ensure cheaper data services in the country as a rule.

Early in the year telecom operators under the aegis of Association of Licenced Telecom Operators of Nigeria (ALTON) wrote to the government via the Nigerian Communications Commission (NCC) proposing 40% rise in tariffs as a result of the high cost of doing business in Nigeria, but sensing no response, they may have technically begun a staggered increase of tariffs in this regard.

READALSO: Experts Alert Nigerian Businesses As Cybersecurity Threats Increase

Specifically, ALTON,s letter read, “Given the state of the economy and the circa 40 per cent increase in the cost of doing business, we wish to request for an interim administrative review of the mobile (voice) termination rate for voice; administrative data floor price, and cost of SMS as reflected in extant instruments.”

But the recent 10 per cent hike is believed to be less than the 40 per cent in the cost of calls, SMS, and data initially proposed by ALTON .

The broadband plan hopes to achieve N1000 for 1Gb data by 2023 and N390 for 1Gb by the turn of 2025.

Although, only MTN Nigeria and Airtel Africa have adjusted their data prices for now, the other operators may be warming up for this increase too.

But it is not clear whether the NCC has endorsed the new adjustments but the regulator’s silence since the operators announcement on this may be a tacit or controlled approval even though there are also no confirmations whether the operators communicated their intentions formally to the regulator.

One thing is sure, the adjustment has come to stay, some industry players insisted.

There are no fewer than 152million people connected to the Internet as at August 2022 according to figures released by the NCC .

Broadband connectivity stood at 44.7% and by the National Broadband Plan ,Nigeria hopes to achieve 70% by 2025.

And with these raise in cost of data, many more people may find it herculean a task to connect and sustain connectivity as they may be torn between costs of other commodities and that for data to enable them connect to the internet .

This scenario will further create a divide between those who can afford it and those that cannot.

New studies on Internet Divide by SurfShark says that people in Least Developed Countries work three times harder to have access to three times lower internet connection.

The study says that 5.11 billion people (or 65.6% of the global population) use the internet.

But strangely lower-income countries still work the most for bad-quality internet.

“There is an ever-growing disproportion in internet accessibility. This imbalance goes beyond just the internet to include digital exports, computing power, cybersecurity, and similar. But how big is the divide, and how will it expand in time?”

The study says people from lower-income countries are at an instant disadvantage when it comes to internet accessibility. Both mobile and broadband internet are three times slower than in higher-income countries but are three times less affordable:

According to the study, ”people from lower-income countries work approximately 11 minutes more than higher-income countries to afford a single 1GB mobile internet plan that is also 49 Mbps slower. The average mobile internet speed in lower-income countries is 26 Mbps. You likely wouldn’t have any trouble streaming a movie, but you would struggle to have a video conferencing call (which requires at least 50 Mbps speed).”

The story is not too far for Broadband internet where lower-income countries work eight hours more than higher-income countries to afford a fixed broadband plan that is 83 Mbps slower on average. Unfortunately, fixed broadband internet in lower-income countries is just slightly faster than mobile (34 Mbps), which is still not enough for a smooth video call.

The lowest-income countries experience the sharpest internet divide.

In Mali and Ethiopia, for instance, people work 14 times more than the highest-income countries for mobile internet that is 68 mbps slower. Broadband internet in these lowest-income countries is just 19mbps on average (129 mbps slower than the highest-income countries), but it’s 8 times less affordable.

The SurfShark study equally says it’s Digital Quality of Life Index reveals key insights into digital wellbeing across 117 countries (or 92% of the global population). Each country ranks according to five pillars viz internet quality, internet affordability, e-infrastructure, e-government, and e-security.

“Having analyzed the Digital Quality of Life index over the last four years, Surfshark found that digital opportunities have proven to be more critical than ever. The COVID-19 pandemic stresses how important it is for countries to ensure remote operational capacity to drive their economies forward.”

These studies play out in the Nigerian situation as the average speed stands at 26 mbps except for those who have for broadband at higher costs.

By the upward reviews of data costs in Nigeria, the operators added between N10 and N50 to different data bundles across board where daily data bundle has increased to N550 from N500 and monthly bundle of 20GB now selling for N5,500, instead of N5,000.

NCC records show that MTN Nigeria had 42 percent of internet subscribers as at August 2022 accounting for the largest share, while Globacom, Airtel, and 9Mobile had 28 percent, 27 percent, and 3 percent of internet subscribers in that order.

While Nigeria’s broadband connectivity stands at 44.7%,the International Telecommunication Union (ITU), records show that mobile broadband penetration rates for South Africa, Egypt, and Kenya are roughly 116 percent, 77 percent, and 54 percent respectively.

Cost of living in Nigeria is not getting lower as income or take home hardly takes anyone home now and so several things are competing for the very poor income and spiraling cost of living.

Paucity of foreign exchange has also compounded industrial productivity fueled by low Foreign Direct Investments(FDIs).

So to grow the broadband sector of the telecommunications industry is a nightmare for operators. This affects spread and ultimately access and high cost.

And as SurfShark study says, when it comes to internet freedom, “some regions develop quicker than others. Africa still faces the most significant internet divide of all the continents in this study, as it was the only continent where the internet has failed to become more affordable since last 2021” adding that of all the pillars, internet affordability shows the highest inequality.

“As of 2022, the internet in Africa is 83% less affordable than in Oceania, the region with the most affordable internet. In fact, the study’s data shows that the gap between these regions has widened by more than 20 percentage points.”

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TECH DIGEST– The largest market in Southeast Asia finally approves a personal data privacy law after years of debate. This law will apply to both domestic and foreign companies that handle customer data from Indonesia.

The personal data protection law that had been under consideration in Indonesia since 2016 has finally been passed. The new Bill, according to the administration, will be crucial given the recent wave of data security breaches in the nation.

READ ALSO: 238 Nigerian Tech Startups Raise Over $2 Billion In Seven years, Dominate Africa

The Personal Data Protection (PDP) Bill was approved by Indonesia’s House of Representatives earlier this month, opening the path for its ratification on Tuesday. The nation has now joined the list of Southeast Asian nations with specific laws protecting personal data, including Singapore and Thailand. Communications and Informatics Minister Johnny G. Plate had hailed the approval as a milestone and key to driving connectivity and advancements for the local digital sector. Plate said laws to safeguard personal data would help boost and facilitate the management of data security breaches, according to statutory board and state-owned news agency, Antara.

Since personal information is needed for public services and is processed digitally, the security breaches underscored the urgent necessity for the data protection bill, according to Antara. Identity card numbers (NIKs), for instance, were frequently used to complete the purchase of railway tickets as well as the registration of online apps.

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TECHDIGEST – The National Association of Telecoms Subscribers (NATCOMS) has announced it will be suing the Nigerian government over plans to introduce a 5% telecom tax.

NATCOM’s president, Adeolu Ogunbanjo, said the association will challenge the legitimacy of the proposed 5% excise duty on telecoms services in court.

Ogunbanjo described the proposed excise duty on calls, SMS, data, and other telecom services as insensitive decision to further impoverish consumers whose purchasing power had already been weakened.

READ ALSO: Finance Minister insists on 5% Telecom Tax

“The Minister of Finance is insisting on implementing the excise tax, this shows insensitivity particularly when the substantive minister of the affected sector is pushing back,” said Ogunbanjo even as he warned that the new tax could erode gains made in the sector.

The federal government had announced recently through the Ministry of Finance, Budget and National Planning that it would begin the implementation of the telecom tax from first quarter of 2023.

But the Minister of Communications and Digital Economy, Prof Isa Ali Ibrahim Pantami, while speaking at the maiden edition of the Nigerian Telecommunications Indigenous Content Expo also recently in Lagos said his ministry was not consulted.

The minister warned that the telecoms tax could become counterproductive and advised that luxury items not essential services like telecom should attract higher taxes instead.

“Firstly, I have not been consulted officially and part of the rulemaking is to invite stakeholders to make contributions, I was not consulted officially. Secondly, if we have been contacted, we would have challenged the submission,” said minister.

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TECH DIGEST – With data privacy and protection gaining prominence and recognition around the world as a result of its impact on the digital economy, wealth creation, and employability, all Federal Government Ministries, Departments, and Agencies in the country must ensure the full protection, privacy, and confidentiality of all citizenry data under their purview.

During a courtesy visit to the Nigerian Postal Service (NIPOST) office in Abuja, Dr. Vincent Olatunji, the National Commissioner (NC) of the Nigeria Data Protection Bureau (NDPB), revealed this.

Olatunji, speaking about the value of data privacy and protection in a digital economy, stressed that the digitization of current traditional processes, which influence individuals from birth to death, should be given the utmost attention and priority. In a worldwide digital economy worth over $11.5 trillion, data subjects, according to the Bureau’s CEO, need to know how their data is handled, processed, and safeguarded by data processors. The country’s Data Security Officer emphasized the necessity of data privacy and protection as an essential component in the march toward a digital economy, forcefully declaring that countries that do not have privacy laws will not do business with them.

READALSO:NIPOST, LASG to train Courier Operators on Professionalism

He then urged NIPOST, a major data processor and controller, to develop a robust privacy policy, organizational measures, technological measures, and staff capacity building in accordance with the provisions of the Nigerian Data Protection Regulations, given the volume of data they process on a daily basis (NDPR). “On your website, you should place a greater emphasis on your privacy policy, which should be concise, effective, and easily visible. We’ll also be bolstering the data protection capabilities of your regional officers, as they’re the ones who engage with people and their data on a daily basis,” he added. While emphasizing the importance of NIPOST engaging a Data Protection Compliance Organization (DPCO) to guide them through NDPR compliance measures, Olatunji stated that DPCOs has been instrumental in gaining traction in the implementation of the NDPR, which has aided in the nation’s economic growth. “We’ve licensed 103 DPCOs, and the average DPCO employs between 10 and 20 people, depending on their capacity and the number of consumers they serve.” This has aided in the creation of jobs in the country, with over 8000 positions generated in the ecosystem,” he stated.

The NC went on to say that on a yearly basis, DPCOs will take NIPOST through the compliance process and file an audit report with the Bureau, which will then be published on the Bureau’s website. According to Olatunji, the released report would reveal that NIPOST has cooperated fully, taken the problem of data privacy seriously, and demonstrated cooperation among the Ministry of Communications and Digital Economy’s institutions. He then advised NIPOST administration to guarantee that all courier and logistics businesses under their control adhere to data privacy laws in order to earn Nigerians’ trust.

“We are developing toolkits for different sectors in the country based on their unique characteristics, and we will work with you to ensure that the provisions of the NDPR are not only followed, but also seen as a culture,” Dr. Olatunji concluded. In response to the National Commissioner’s speech, NIPOST Postmaster General Dr. Ismail Adebayo Adewusi praised the Honorable Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim (Pantami), for recommending Dr. Olatunji as the Bureau’s first National Commissioner.

“Truth be told, Dr. Olatunji is a highly professional and cerebral technocrat who has successfully completed all of the duties assigned to him over the years and is a perfect depiction of a round peg in a round hole,” he stated emphatically. The PMG then praised the Bureau for their unwavering and constant efforts in safeguarding data security in the country thus far. He said that the company has been teaching and sensitizing people about the importance of post offices in a digital economy, citing the essential role they play in the global flow of people’s commodities, parcels, mail, and financial services.

Adewusi stated that NIPOST is at the forefront of dealing with people’s data, and that they have a serious responsibility to protect people’s data within their domain, and that they will work closely with the Bureau to accomplish this.

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