Gaps in Broadband and Data Centres Threaten Nigeria’s $1tn Economy Target, Warn Telcos

Nigeria’s ambition to reach a $1 trillion economy by 2031 is at risk due to significant gaps in its digital infrastructure, particularly in broadband connectivity and data centres, telecom executives warned. Since President Bola Tinubu set the goal in May 2023, experts have pointed out that the country’s current infrastructure shortfalls could hamper economic growth and deter foreign investment. Notably, Nigeria and most African nations, except South Africa, account for less than 1% of global data centre capacity, with South Africa holding 50% of Africa’s total. Industry leaders stress the need for substantial investments in broadband expansion, data centres, and cybersecurity.

Dr. Ayotunde Coker, CEO of Open Access Data Centre, highlighted the critical need for integration between connectivity, power, and data centres to ensure the resilience of Nigeria’s digital economy. Coker also emphasized that broadband penetration could have a direct impact on GDP growth, with a 10% increase potentially contributing 2.5% to the country’s GDP. Nigeria is planning a $2 billion project to deploy 90,000 km of fibre optic cables across the nation, backed by international financial institutions. This initiative aims to improve broadband access, with the goal of achieving 80% penetration by 2030.

Lars Johannisson, CEO of Rack Centre, also addressed the importance of strong asset protection policies to attract foreign investment into Nigeria’s data centre sector. Johannisson noted that every megawatt of data centre capacity requires an investment of approximately €12-15 million. He advocated for decentralizing data centres beyond Lagos to improve accessibility and affordability across the country, pointing out that inefficiencies could prevent large portions of the population from accessing digital services.

In addition to infrastructure, telecom executives stressed the need for a stable regulatory and power supply environment to attract foreign direct investment. Abayomi Adebanjo from Equinix urged Nigerian policymakers to follow Ireland’s example, where a stable environment has successfully attracted investment. He also raised concerns about gaps in Nigeria’s Critical National Information Infrastructure framework, highlighting challenges like fibre cable theft and legal obstacles that undermine security and investment in the country.

Source: punch