{"id":104320,"date":"2025-03-03T17:24:16","date_gmt":"2025-03-03T17:24:16","guid":{"rendered":"https:\/\/www.cloudcomputing-news.net\/?p=104320"},"modified":"2025-04-23T08:57:02","modified_gmt":"2025-04-23T07:57:02","slug":"nigerian-companies-turn-to-local-cloud-services-over-aws-and-google-cloud","status":"publish","type":"post","link":"https:\/\/www.cloudcomputing-news.net\/news\/nigerian-companies-turn-to-local-cloud-services-over-aws-and-google-cloud\/","title":{"rendered":"Nigerian companies turn to local cloud services over AWS and Google Cloud"},"content":{"rendered":"\n

Nigerian entrepreneur Fara Ashiru launched her fintech platform, Okra, in 2020 using AWS.<\/p>\n\n\n\n

As US-based cloud providers did not accept payments in naira, she had to pay for services in US dollars. As the naira lost about 70% of its value between 2020 and 2024, Okra\u2019s cloud expenses soared. \u201cThe bills were staggering,\u201d Ashiru told Rest of World<\/a><\/em>. With Nigeria\u2019s economic challenges, the model became unsustainable.<\/p>\n\n\n\n

To cut costs, Okra moved its cloud infrastructure to local data centres in Nigeria and South Africa in 2024. Later that year, the cloud operations spun off into Nebula, a separate company offering businesses cloud hosting with payments in naira.<\/p>\n\n\n\n

Nebula is part of a growing trend of Nigerian cloud providers offering alternatives to AWS, Microsoft Azure, and Google Cloud. Companies like Nobus, Galaxy, Suburban, and Layer3 are positioning themselves as local options for businesses looking to avoid exchange rate volatility and keep data within the country. Several startups have already shifted to these providers.<\/p>\n\n\n\n

Besides cost savings, local cloud services help Nigerian businesses store data domestically, reducing latency and addressing concerns over data sovereignty. As debates over data control intensify globally, many businesses are prioritising local storage.<\/p>\n\n\n\n

International cloud providers appear to be adjusting to this shift. In January, AWS began accepting payments in naira, stating that local currency options improve customer experience.<\/p>\n\n\n\n

Industry experts see this as a practical move. \u201cI think AWS has realised that they must accept naira because if you don\u2019t accept naira you are wasting your time,\u201d said Iyinoluwa Aboyeji, managing partner at Accelerate Africa. \u201cWe regularly advise our portfolio companies to look out for local solutions where possible and manage major costs like [cloud] in naira.\u201d<\/p>\n\n\n\n

AWS, Microsoft, and Google did not respond to requests for comment.<\/p>\n\n\n\n

Nigeria\u2019s tech sector includes over 19,000 startups, with 1,400 venture-backed firms that have collectively raised nearly $28 billion.<\/p>\n\n\n\n

Despite their dominance, AWS, Azure, and Google Cloud have concentrated their African data centres in South Africa. Microsoft set up a Johannesburg facility in 2019, with expansion plans for Kenya. AWS followed in 2020, and Google Cloud recently joined them in Johannesburg. AWS launched a small local zone in Lagos in 2023, but none have full-scale data centres in Nigeria.<\/p>\n\n\n\n

Data localisation is becoming a priority as governments push to keep data within their borders. Nigerian startups shifting to local cloud providers see this as an advantage. \u201cHow does it sound for Nigerian voters\u2019 data to be stored in Europe?\u201d asked Bruce Ayonote, CEO of Suburban Cloud. \u201cAs long as we continue to ask this question, we will always arrive at the point where we build our own cloud infrastructure.\u201d<\/p>\n\n\n\n

This emphasis on data sovereignty could help Nigerian cloud providers gain traction even as AWS adjusts its pricing. \u201cWe are keying into our data sovereignty narrative,\u201d said Chidi Okpala, head of media at Galaxy Backbone. Initially built for government interoperability, Galaxy Backbone now provides cloud services to both public and private sector clients, operating data centres in Abuja and Kano.<\/p>\n\n\n\n

Performance is another factor driving the shift. Suburban Cloud\u2019s Abuja facility helps clients like Netflix and Google reduce latency. \u201cLatency is a big issue when it comes to cloud business and these global companies know that they have to build some forms of proximity to their users,\u201d Ayonote said.<\/p>\n\n\n\n

Building data centres is expensive, often requiring millions of dollars. Some Nigerian startups are addressing this by renting space in existing facilities owned by telecom firms, banks, and IT companies. \u201cWe run our cloud services out of third-party data centres in Nigeria,\u201d said Oyaje Idoko, founder of Layer3. \u201cWe currently have three availability zones operating out of two data centres in Lagos and one in Abuja.\u201d<\/p>\n\n\n\n

Demand for colocation services is growing. \u201cWe\u2019re seeing more colocation and other services by local cloud providers, driven by the growing digital technology landscape, increasing demand and most importantly, the need for payment in local currency,\u201d said Obinna Adumike, head of converged digital infrastructure at Open Access.<\/p>\n\n\n\n

Despite these advantages, local cloud providers face challenges. Infrastructure gaps and less automation than global competitors remain hurdles. Ugochukwu Okoro, CEO of property tech firm Muster, noted that while he prefers working with Nigerian cloud provider GigaLayer, it lacks AWS\u2019s automation.<\/p>\n\n\n\n

\u201cTheir services are great, but I understand a lot of users might not want to use them because of skill issues. I have to manually integrate our system gradually, something most of my engineers can\u2019t do because they are used to the seamless plug-and-play offered by AWS,\u201d he said.<\/p>\n\n\n\n

See also: Microsoft’s palm-sized chip brings practical quantum computing within reach<\/a><\/strong><\/p>\n\n\n\n

Want to learn more about cybersecurity and the cloud from industry leaders? Check out Cyber Security & Cloud Expo<\/a> taking place in Amsterdam, California, and London.<\/em><\/strong><\/p>\n\n\n\n

Explore other upcoming enterprise technology events and webinars powered by TechForge here<\/a>.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Nigerian entrepreneur Fara Ashiru launched her fintech platform, Okra, in 2020 using AWS. As US-based cloud providers did not accept payments in naira, she had to pay for services in US dollars. As the naira lost about 70% of its value between 2020 and 2024, Okra\u2019s cloud expenses soared. \u201cThe bills were staggering,\u201d Ashiru told […]<\/p>\n","protected":false},"author":60511,"featured_media":104321,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[47,1,69],"tags":[169,202,182,203,232],"ppma_author":[1844],"class_list":["post-104320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cloud-computing-aws","category-cloud-computing","category-cloud-computing-google-cloud","tag-aws","tag-azure","tag-cloud","tag-google-cloud","tag-microsoft"],"acf":[],"yoast_head":"\nNigerians turn to local cloud services over AWS and Google Cloud<\/title>\n<meta name=\"description\" content=\"Nigerians are opting for local cloud providers to avoid high costs from currency fluctuations and dollar-based payments with AWS, Azure, and Google 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