One of the keys to progress in Nigerian digital growth lies in connectivity. At the Nigerian Peering & Interconnection Forum, industry experts gathered to discuss the challenges and triumphs in building a robust digital infrastructure ecosystem.
Funke Opeke, Managing Director, West Africa, MainOne, an Equinix Company, shared invaluable insights during the panel discussion, shedding light on the disparities between Nigeria and its neighboring countries, and proposing innovative solutions to bridge the digital divide.
Funke Opeke highlighted the complexities and challenges of operating in Nigeria’s digital infrastructure landscape. She noted that Nigeria is a massive market, but it comes with its own set of unique hurdles.
One of the primary issues she pointed out is the bureaucratic red tape that businesses must navigate when dealing with government permits, licenses, and regulations.
These challenges exist in neighboring countries as well, but the degree of red tape is notably higher in Nigeria. Funke Opeke noted the lack of recognition for the transformative power of digital infrastructure investment within the Nigerian government. Despite the significant contribution of ICT to the country’s GDP, the focus often remains on immediate financial gains rather than fostering an environment conducive to long-term growth and development.
“In Nigeria, it is not recognized. But you still have a red tape. And I think, to the extent that ICT has grown as a portion of our GDP, close to 16%, and we do have big players in the sector, government agencies across the board focus on, profit makng upfront, rather than encouraging companies to actually provide the right incentives to invest, and then deriving revenues from the jobs that are created, and the federal taxes, the value-added taxes, the output taxes, so to speak.”
In drawing comparison between Nigeria and its neighboring countries, such as Ghana and Cote d’Ivoire, she pointed out that while these smaller markets may lack the scale of Nigeria, they offer a more straightforward and less bureaucratic environment for infrastructure development. In these countries, the upfront processes for businesses are relatively smoother, with fewer hurdles to overcome.
“If I were to contrast and say those markets are also not after taxes, but getting things done, the upfront side is a little bit easier. And you have just shorter periods, fewer agencies to get fewer random letters from agencies you never heard of, saying if you did not realize that you need to get my permission and pay some fees before you’re able to do anything,” Funke Opeke remarked.
During the discussion, Funke Opeke was asked what she would change if given a magic wand to improve Nigeria’s digital infrastructure ecosystem. Her response highlighted the urgent need for a more inclusive approach to connectivity, one that reaches every corner of the country, not just the high-net-worth areas.
“My one single wish would be that we get a country better connected or put the infrastructure that enables the country to get better connected. And I think we’ll see wonderful things happen.
Having that quality of connectivity around Nigeria today would truly change everything. I mean, we’d have to break more content in country because you’d be serving so much, the operators will be delivering much more traffic, and Nigeria would be able to serve the region of Africa, because everyone sees Nigeria as a natural hub.”
Funke Opeke envisioned a unified digital network that transcends geographical boundaries. Her visionary approach focused on channeling resources toward creating an all-encompassing digital infrastructure that reaches every corner of Nigeria.
This shared network, she emphasized, should operate on the principles of open access and shared costs. In establishing a governance framework and encouraging collaboration between the public and private sectors, this network could pave the way for unprecedented growth.
She advocated for a shared, open-access fibre network that spans every local government, village, and community, irrespective of economic potential.
Opeke expressed her vision, stating, “One, it will get access to our rural areas. It will enable licensed retail operators to expand 4G services, and even 5G services and just increase the volume of information that people are able to consume. It would enable access to learning for our youth and also to job opportunities, regardless of where you are.”
Funke Opeke’s perspective offers a roadmap for transforming Nigeria’s digital economy, focused on shared infrastructure, open access, and collaborative governance. The country can break down barriers and empower its citizens with unparalleled access to digitization.
