The telecom operator explained that several factors contribute to faster data usage, including hotspot sharing, video streaming, automatic app updates, cloud backups, and the growing adoption of high-speed internet services.

According to the company, many users unknowingly consume significant amounts of data through background activities on smartphones, tablets, laptops, smart TVs, and other connected devices.

Features such as auto-play on social media platforms, automatic software updates, and cloud synchronization can continue running even when users are not actively using their devices.

MTN also noted that hotspot sharing remains one of the leading causes of unexpected data consumption. When subscribers connect multiple devices to a single data plan, activities such as video streaming, online gaming, software downloads, and system updates on those devices can quickly exhaust available data.

The operator further explained that faster internet technologies, including 4G and 5G networks, naturally encourage higher data consumption as users access more high-definition content and bandwidth-intensive applications.

Similar observations have previously been highlighted by industry stakeholders and regulators, who note that video streaming, automatic updates, and background applications are among the major contributors to increased data usage.

Speaking today at subscriber townhall meeting codenamed ‘Data on Trial’, Michael Ndukwe, a senior manager for core network implementation at MTN Nigeria, said many subscribers misunderstand how data is consumed, particularly with the increasing adoption of high-speed technologies such as 4G and 5G networks.

“We usually hear the concern that MTN is stealing my data. I’m here to take you step by step through exactly how your data is used,” he said.

According to him, using a TikTok video as an example, he said data is not consumed when a mobile device merely connects to the network or undergoes authentication checks.

The expert said significant data usage only begins when a user requests online content, such as a video, which is then delivered through the network in “packets and reassembled on the device”.

He said the network first confirms that the subscriber is registered, has an active data bundle, and is authorised to access internet services before establishing a session.

“Data is not taken from you without your action. When you stream, scroll, download or share, you are using data. It’s as simple as that,” Ndukwe said.

Ndukwe said subscribers often conclude that operators are deducting data unfairly because consumption rates on modern networks differ significantly from what users experienced on older technologies such as 2G and 3G.

He explained that faster networks are designed to support richer content and provide a better experience, resulting in greater data usage.

Also speaking at the ‘Data On Trial’ session, David Ogunshola of MTN’s information technology team, said differences between data usage records displayed on customers’ devices and those recorded by the network are normal.

He said devices typically track only user activities and application-level consumption, while the network records the entire data session, including signalling and other processes required to establish and maintain connectivity.

Ogunshola said discrepancies may also arise from different measurement standards used by device manufacturers and network systems.

According to the IT expert, these differences are usually marginal but become more noticeable as data volumes increase.

He noted that the evolution from basic mobile phones to smartphones, smart televisions, gaming consoles and wearable devices has significantly increased data consumption because modern devices are optimised to deliver higher-quality experiences.

“The more sophisticated the device, the more it is optimised for quality. If you do not adjust those configurations, the device will always try to give you the best possible experience, and that comes with higher data usage,” Ogunshola said.

Ndukwe said MTN provides tools to help customers monitor and manage consumption, including the MyMTN app, data usage alerts, and data management features that allow subscribers to set limits and restrict background activities.

“Our promise is that we continue to invest heavily in network quality to give you the best experience and ensure that every megabyte you purchase delivers the experience that you expect,” he said.

He assured customers that the company would continue investing in network infrastructure to improve service quality and ensure transparency in data billing.

Meanwhile, Blessing Banro from TECNO Mobile representing the device makers spoke on understanding smart devices and how to they help you manage your data

The clarification comes amid increasing consumer complaints regarding data consumption patterns, particularly following recent adjustments in telecommunications tariffs.

While some subscribers continue to question the accuracy of data deductions, Timi Agbaje spoke against the defence of device makers and MNOs, asking pertinent questions on behalf of the people, operators maintain that changing digital habits and increased connectivity are the primary drivers of higher data usage.

To help subscribers better manage their data, MTN advised customers to:

• Monitor data usage regularly through available tracking tools.
• Disable automatic updates when using mobile data.
• Turn off auto-play features on social media and video platforms.
• Restrict background data usage for non-essential applications.
• Review devices connected through hotspot sharing.
• Use data-saving modes where available.

Industry analysts at the Data on Trial session by MTN Nigeria are of the view that the growing popularity of video content, cloud services, remote work applications, and connected devices is reshaping internet consumption patterns across Nigeria, resulting in higher average data usage per subscriber than in previous years.

Shoyinka Shodunke, chief information officer of MTN Nigeria, said this as he delivered the keynote on the digital economy forecast for 2026 at Tech Revolution Africa Conference 2.0 in Lagos, headlined by MTN. 

Speaking under the theme “The Big Bold Step,” Shodunke stressed that the fourth industrial revolution is the first moment in history where Africa can compete on equal terms, but only if it moves fast.

“The inputs today are data, and where’s the factory? The factory sits in the cloud,” he said.

During the first industrial revolution, the continent was absent. In the second, it supplied raw materials. In the third, it became a consumer of finished technology. Each delay came at a cost.

“We got punished for the first. Got punished for the second time. We got punished for the third,” he said. “But in the fourth, if we fail to act, we get punished again.”

What makes this era different, he explained, is that scale no longer depends on capital. With cloud services, access to talent from anywhere and locally generated data, the limitations are lower. Startups no longer need massive data centres or years of runway before launching products.

“You can subscribe to cloud services today at $50,” he said. “You don’t have to invest over $100,000 on compute power for you to be able to power your industry.”

Shodunke explained that the actual threat is not lack of technology but fear, fear of disrupting existing business models, revenue streams and comfortable ways of working. He warned that organisations clinging to legacy systems risk repeating Africa’s old mistakes.

“You cannot live with a legacy mindset, a fear of disruption, or with the comfort of mediocrity,” Shodunke further stated at the Tech Revolution Africa Conference 2.0. “Whatever is being built has to be built with a scale in mind, not mediocre.”

Using MTN as a case study, he described how the telecoms giant has had to intentionally disrupt itself, moving beyond voice and data into cloud services, fintech and intelligent platforms layered on top of its network infrastructure.

“History punished everyone who hesitated,” he warned. “So don’t really wait for the perfect time to come in, only take that big bold step.”

In closing, he stressed that the race has already started. Africa is not arriving late anymore, but hesitation could still leave it watching others disrupt.

“Revolution,” Shodunke said, “it punishes hesitations.”

The outage, which began around 16:00 UTC on October 29, was traced to an “inadvertent configuration change” that disrupted DNS routing and caused widespread latency, timeouts, and authentication failures across multiple systems.

The fallout was immediate and spread wide. Core Microsoft services, including Microsoft 365, Xbox, Minecraft, and Azure-dependent applications, were hit. 

Companies relying on Azure infrastructure, such as Alaska Airlines, Hawaiian Airlines, Starbucks, Costco, Kroger, and Capital One, also reported service disruptions that left customers unable to access websites, make payments, or check in for flights.

In a statement on Azure’s status page, Microsoft confirmed the root cause of the incident:

“Starting at approximately 16:00 UTC on 29 October 2025, customers and Microsoft services leveraging Azure Front Door (AFD) may have experienced latencies, timeouts, and errors. We have confirmed that an inadvertent configuration change was the trigger event for this issue.”

Azure Front Door (AFD), which powers global content delivery and accelerates applications, became the central point of failure. The outage rippled across a long list of Azure services, including App Service, Azure SQL Database, Azure Active Directory B2C, Microsoft Sentinel, Azure Virtual Desktop, Azure Maps, and Microsoft Defender External Attack Surface Management.

By 7:40 PM ET, Microsoft said Azure Front Door had reached “above 98% availability” and that mitigation efforts were ongoing. “We are continuing to work on tail-end recovery for remaining impacted customers and services,” the company added, estimating full recovery by 00:40 UTC on October 30.

Gaming services were also affected. Xbox users experienced connection issues, with many needing to restart their consoles to reconnect. The Xbox Support account later confirmed services were “restored to their pre-incident state.”

Elsewhere, Alaska and Hawaiian Airlines acknowledged that the Azure outage disrupted key operational systems. “We are currently experiencing a disruption to key systems, including our websites,” Alaska Airlines said, urging passengers to visit airport counters for boarding passes.

Retail chains like Starbucks, Costco, and Kroger’s websites and mobile apps were temporarily inaccessible, while some Capital One customers reported difficulty accessing banking services. In the UK, internet provider Community Fibre confirmed that “some customers may have experienced issues due to the Microsoft outage.”

The disruption coincided with Microsoft’s quarterly earnings release, during which even its main website struggled to load properly. While the company managed to restore most services by late evening, the timing of the incident worried investors and analysts about the resilience of global cloud systems.

This outage follows a similar incident just a week earlier involving Amazon Web Services (AWS), which also led to widespread internet disruptions. Analysts warn that such back-to-back failures reveal the fragility of the world’s dependence on a few centralised cloud providers.

The outage, which originated from AWS’s US-EAST-1 region, began in the early hours of Monday and quickly spread beyond the United States, affecting Europe, Asia, and Africa. 

According to AWS’s own status dashboard, multiple services are currently “impacted” due to “increased error rates and latencies,” with engineers “actively engaged and working to both mitigate the issue and understand root cause.”

For users, the impact has been immediate and widespread. Alexa devices have gone silent, unable to respond to voice commands or execute daily routines like alarms and reminders. 

Developers and businesses using AWS’s cloud network, from Airtable to Perplexity AI and the McDonald’s app, have also been hit. Even high-traffic entertainment platforms like Fortnite, Roblox, and Rainbow Six Siege are offline.

Downdetector, a platform that tracks service disruptions, has logged over 2,000 incident reports in the U.S. alone since the outage began. On Reddit and X (formerly Twitter), frustrated users across time zones have shared screenshots of failed connections and frozen dashboards.

“Perplexity is down right now,” confirmed Aravind Srinivas, CEO of Perplexity, in a post on X. “The root cause is an AWS issue. We’re working on resolving it.”

Amazon, in its latest public update at 3:51 a.m. ET, noted that it would provide further information every 45 minutes “or sooner if we have additional information to share.” However, at the time of writing, there is still no estimated timeline for full restoration.

This isn’t the first time AWS’s US-EAST-1 region has been the source of widespread disruption. Similar outages in December 2021, November 2020, and June 2023 took down high-profile platforms including Netflix, Disney+, Slack, Zoom, and Twitch. 

Each incident revealed an issue across the tech industry, that a large portion of the global internet depends heavily on a single cloud provider’s regional infrastructure.

The current outage appears to have hit both consumer-facing apps and backend systems, including AWS’s own Support Center and Support API, which organisations rely on for case creation and troubleshooting.

While AWS has reiterated that engineers are investigating the problem, the lack of transparency about the specific cause of the outage is driving industry-wide anxiety. Many are now revisiting familiar cases of how much centralisation is too much when the internet’s backbone depends on just a handful of companies.

For now, millions of users are in a holding pattern, waiting, refreshing, and hoping their devices come back online soon.

Its cloud infrastructure product, Nebula, is also no more. And with both gone, one of the continent’s most ambitious tech stories has come to a quiet and unexpected end.

Okra Introduces Nebula: Africa’s Own Cloud Solution

The company, which raised over $16 million from global investors, officially ceased operations in May 2025. Fara Ashiru Jituboh, the co-founder and former CEO/CTO, confirmed the closure in a statement to Techpoint Africa:

“The company made the decision to wind down operations in May. It was an incredible journey; we built impactful technology, worked with some of the biggest brands across the continent, and helped pioneer open banking in Africa. I’m proud to have worked alongside some of the smartest and most talented people, and I’m deeply grateful for the community, customers, investors, and team who supported us over the past five years.”

Jituboh has since moved on to take up a new position as head of Engineering at the UK-based startup, Kernel, according to her LinkedIn profile. 

Her exit followed a series of quiet internal changes at Okra, including the departure of her co-founder, David Peterside, in 2022. Since then, no successor was publicly named, and by mid-2025, the startup was already off the radar of most in the ecosystem.

Founded in 2019, Okra set out to do something few African startups dared; build the core infrastructure powering open finance. Its APIs enabled users to link their Nigerian bank accounts to third-party applications in real time, offering services from identity verification to income and transaction data sharing.

That initiative attracted early backing, including $1 million from TLcom Capital and a $3.5 million seed round led by Susa Ventures, eventually pushing total funding beyond $16.5 million.

But scale didn’t guarantee survival. In October 2024, in response to high foreign exchange costs that made services like AWS and Azure increasingly expensive, Okra launched Nebula, a naira-denominated cloud platform aimed at local businesses.

Designed to offer Tier 3 and Tier 4 data centres, compliant with African data regulations and billed in local currency, Nebula was intended to reduce dependence on costly international services. It was an aggressive bet on infrastructure, competing against the likes of Nobus and Layer3.

However, tech giants quickly responded by enabling local billing and slashing prices, with AWS and Microsoft reportedly cutting rates by up to 20%. With that, any price advantage Nebula hoped to offer was gone, and customer adoption remained underwhelming.

By March 2025, Jituboh publicly admitted what many in tech were privately whispering, cloud expenses had become unsustainable: salaries aside, server costs were swallowing most of Okra’s revenue. 

The competitive space added further challenges. Startups such as Mono and Stitch, which raised $17.6 million and $52 million respectively, raced ahead in distribution, partnerships, and product sophistication. These rivals had deeper war chests and were able to move faster, often capturing the very market segments Okra once aimed for.

With no external capital infusion publicly announced after 2021, and an economic environment that continued to worsen, the signs were there. Few noticed.

What’s perhaps most notable is how quietly it all ended. No press release or farewell post. Just an update on LinkedIn and a quote to a reporter. For a company that once called itself the “Plaid of Africa,” it was a soft landing that belied the size of its dreams.

Before founding Okra, Jituboh had worked at Canva, BMW, and JP Morgan. She returned to Nigeria to solve a problem she’d experienced first-hand, fintech apps that didn’t connect to local banks. 

Okra’s solution was commendable, building the rails of open finance. And for a while, it worked. Its API usage surged by 175% in early 2020. Partnerships with platforms like Renmoney, Branch, Bamboo, and AIICO Insurance came quickly. Regulators took notice, investors followed.

But between currency depreciation, infrastructure strain, and the leadership vacuum post-2022, Okra’s speed slowly faded. The fintech space had grown more crowded and more difficult. Scaling in Africa without a deep-pocketed backer or profitable model remains a fierce challenge.

Okra’s closure repeats the fact that startups need staying power, but in Nigeria’s current economic situation, even the brightest ideas are fighting for breath.

This couldn’t be further from the truth, especially in Nigeria, where cloud adoption is growing, yet the affordability of cloud services is still bothersome for many. 

Surprisingly, the global cloud computing market is projected to reach $947.3 billion by 2026, with over 96% of companies using public cloud services. 

This growth is reflective of the way businesses, big and small, are leveraging cloud services to reduce costs of operations and improve efficiency. 

While Nigeria’s cloud market is projected to reach $1.03 billion by 2025, it’s necessary to understand how Nigerian startups and SMEs can benefit from affordable cloud solutions to facilitate growth and operations, as well as get to know providers that offer affordable services.

For small businesses in Nigeria, adopting cloud computing goes beyond reducing overhead costs. It also includes scaling operations and ensuring you do not miss opportunities at all. 

With the market growing at a compound annual rate of 25.98% from 2025 to 2030, it’s obvious that cloud computing is a necessity for businesses that intend to scale.

The Nigerian government has even positioned cloud adoption as a priority through initiatives like the National Digital Economy Policy and Strategy (NDEPS), further encouraging businesses to embrace the cloud.

Sectors such as fintech, e-commerce, and education are already taking up this technology, helping to drive innovation, efficiency, and growth. Moving to cloud solutions will help businesses significantly reduce costs tied to infrastructure, improve collaboration, and scale as needed without the issue of upfront capital expenditure.

Affordable Cloud Service Providers: Global and Local Solutions

When it comes to cloud services, Nigerian businesses can choose from a variety of global and local providers that offer cost-effective solutions. Here are some options for small businesses and startups:

Global Providers

1. Google Workspace Google Workspace provides a suite of tools—Gmail, Drive, Docs, and more—perfect for collaboration.

• Pricing: Plans start at ₦5,508 per user per month.
• Benefits: Seamless integration, enhanced collaboration, and solid security features.

2. AWS Free Tier Amazon Web Services offers a free tier for new customers, enabling startups to access services like storage and virtual servers for the first 12 months, making it ideal for those just starting.

• Pricing: Free for the first 12 months, then standard rates apply.
• Benefits: A wide range of services, pay-as-you-go model, and scalability.

3. Microsoft Azure for Startups Azure offers a programme designed for startups, providing free credits and access to developer tools.

• Pricing: Up to $150,000 in Azure credits.
• Benefits: Access to advanced cloud services, technical support, and resources built specifically for startups.

4. Zoho Known for its affordable CRM and collaboration tools, Zoho is popular among small businesses seeking value for money.

• Pricing: Varies depending on services; starts at ₦10,999 per organization per year.
• Benefits: Low-cost solutions with customizable workflows and multi-currency support.

5. Rack Centre As one of Nigeria’s leading data centres, Rack Centre provides affordable and reliable cloud hosting solutions with localized support.

• Pricing: Detailed pricing given upon request.
• Benefits: Local data hosting, compliance with Nigerian data protection regulations, and minimal latency.

6. MainOne Cloud Services MainOne gives flexible cloud storage and hosting solutions designed for Nigerian businesses.

• Pricing: Provides detailed pricing upon request.
• Benefits: Cost-effective services with strong security features and local infrastructure.

These providers make it clear that access to cloud services doesn’t have to come at a premium. Whether from global giants or local players, affordable and reliable options are within reach.

Why Cloud Computing is Essential for Nigerian SMEs

Adopting cloud solutions can interestingly improve business efficiency and collaboration. With cloud services, Nigerian SMEs can:

• Save Costs: No need for expensive hardware or IT infrastructure; the pay-as-you-go model allows businesses to pay only for what they use.
• Scale Easily: Resources can be adjusted based on demand, meaning businesses can scale without worrying about infrastructure limitations.
• Collaborate Better: Real-time collaboration tools enhance teamwork, regardless of geographic location.
• Ensure Security: Leading providers offer encryption and security updates, making data protection easier than ever.

Even with these benefits, many small business owners still assume that cloud computing is only for large corporations. This misconception is the real limitation to adequate adoption.

How to Choose the Right Cloud Solution

To help Nigerian startups and SMEs make the most of the cloud, here are some important factors to consider when selecting a cloud provider:

• Business Needs: Does your business need storage, customer management tools, or collaboration tools? Determine your priorities.
• Budget: Compare pricing models. Some providers offer pay-as-you-go options, while others have subscription-based models.
• Scalability: Choose a provider that can scale with your business as it grows.
• Customer Support: Ensure that the provider offers excellent customer service in case of technical difficulties.
• Security: Select providers with strong security measures to protect sensitive data.

Cost-Saving Tips for SMEs Using Cloud Services

There are several strategies that can help Nigerian SMEs make the most of their cloud investments:

• Utilize Free Tiers and Trials: Take advantage of free plans and trial periods to test services without commitment.
• Start Small: Begin with basic packages and scale up as needed.
• Monitor Usage: Regularly assess cloud usage to avoid paying for unused services.
• Bundle Services: Opt for providers that offer comprehensive plans that include a variety of services.

Overcoming Challenges in Cloud Adoption

While cloud computing can greatly help businesses, several challenges need to be dealt with for Nigerian SMEs. They include:

• Internet Connectivity: Poor connectivity can limit access to cloud services. SMEs can mitigate this by selecting providers with offline-sync capabilities or partnering with reliable ISPs.
• Cybersecurity: SMEs may fear data breaches. This can be resolved by choosing recognized providers and adopting strong security practices like multi-factor authentication.
• Knowledge Gaps: Many SMEs lack the expertise to fully leverage cloud services. Offering IT training or hiring consultants can help bridge this gap.

The availability of affordable cloud solutions has enhanced operations for Nigerian startups and small businesses. Hence, with the adoption of cloud computing, operations become less expensive with easy scalability and efficiency becomes better. 

The collaboration will boost digital growth and connectivity across the African continent.

The partnership combines China Telecom’s global expertise in network solutions, MTN’s wide reach in the African market, and Huawei’s cutting-edge technological specialisation to drive digital infrastructure development in South Africa and beyond.

Speaking on the partnership, Kai Chen, executive vice president of China Telecom Global, said: “This partnership aims to empower the African market with robust connectivity and innovative solutions, fostering sustainable economic growth,” he said.

For MTN South Africa, the collaboration holds huge promise for businesses and industries reliant on advanced network services. 

According to Tumi Sekhukhune-Chamayou, MTN’s chief enterprise business officer, improved connectivity will bring forth opportunities in sectors such as smart mining and industrial applications. These advancements are expected to stimulate digital transformation in key economic areas, boosting efficiency and innovation.

The partnership also aligns with MTN’s growth strategy to expand its offerings in ICT and business solutions while maintaining its position as a leader in South Africa’s telecommunications industry. “Joining forces with these technology giants enables us to deliver advanced, diversified services to individuals and enterprises in a rapidly evolving digital landscape,” Sekhukhune-Chamayou stated.

South Africa is continuously embracing modern technologies and this initiative will help provide the country with the tools needed for a digitally inclusive future. 

Enhanced access to IoT, AI, and other transformative technologies is expected to benefit businesses and consumers alike, ensuring improved connectivity and economic development.

Through this collaboration, MTN aims to address the challenges of affordability and accessibility that have historically hindered digital adoption.

This disparity reveals a huge gap in the adoption of digital technologies, one that could open up the prospects of thousands of small and medium enterprises across the country.

SMEs are the backbone of Nigeria’s economy, contributing about 48% to the country’s GDP and accounting for over 80% of employment in the non-oil sectors. Despite their economic importance, many of these enterprises face challenges that limit their ability to scale and compete. 

Globally, the business environment is changing and this is driven by digital scale-up, and SMEs in Nigeria need to leverage modern tools to remain competitive, improve efficiency, and reduce operational expenses.

However, the journey to digital growth comes with challenges. Nigerian SMEs are often bogged down by high costs, limited scalability, and constrained access to modern technology. Most rely on traditional infrastructure that is expensive to maintain, prone to downtime, and inefficient in supporting business growth.

Cloud computing, with its flexibility and cost-effectiveness, brings a game-changing opportunity for Nigerian SMEs. In adopting cloud solutions, businesses can reduce overheads, improve operational efficiency, and scale seamlessly without investing in expensive hardware. More importantly, the cloud offers SMEs the agility needed to compete in the digital marketplace, making it a key tool for sustainable growth.

Understanding Cloud Computing in the SME Context

What is Cloud Computing?
Cloud computing is the delivery of computing services—such as storage, processing power, networking, and software—over the internet (“the cloud”), rather than relying on local servers or personal devices. 

For SMEs, this means access to technology resources that were once available only to large enterprises, enhancing innovation and reducing the technology gap. 

Instead of purchasing and maintaining physical hardware, SMEs can now access these resources as needed, paying only for what they use.

Types of Cloud Services:
Cloud computing brings several service models targeting different business needs:

• Infrastructure as a Service (IaaS): Provides virtualized computing resources over the internet. SMEs can rent servers, storage, and networks without having to invest in physical infrastructure. For example, Microsoft Azure allows businesses to deploy and manage applications in a flexible, scalable environment.
• Software as a Service (SaaS): Delivers software applications over the internet on a subscription basis. SMEs can access essential tools like Google Workspace, which provides productivity software (e.g., Gmail, Docs, and Drive), without needing to install or maintain software on individual devices.
• Platform as a Service (PaaS): Offers a platform allowing developers to build, test, and deploy applications. SMEs looking to develop custom solutions can use services like Amazon Web Services (AWS) to simplify their development process without managing underlying infrastructure.

Unique Needs of Nigerian SMEs:
The challenges associated with Nigeria’s business environment make cloud computing an even more attractive solution for SMEs. Power supply is often unstable, making on-site data centres expensive and unreliable. Internet data costs can also be prohibitive, and IT infrastructure is often insufficient to support solid growth. 

Cloud computing, however, reduces the dependency on local power and hardware, providing SMEs with the opportunity to access and manage their operations from anywhere, with minimal physical infrastructure.

Okra Introduces Nebula: Africa’s Own Cloud Solution

Cost Benefits: Reducing Overheads and Improving Efficiency

Eliminating Hardware Costs:
One of the greatest financial burdens on Nigerian SMEs is the cost of hardware—servers, storage, and network equipment. Cloud computing eliminates the need for such investments. 

Instead of spending large sums upfront on physical hardware, SMEs can subscribe to cloud services on a pay-as-you-go basis. This model means businesses only pay for the resources they use, allowing them to manage their cash flow more effectively.

Lowering Maintenance Costs:
Beyond the initial purchase, maintaining IT infrastructure involves ongoing costs—such as hardware upgrades, security management, and system downtime. Migrating to the cloud will enable SMEs to transfer these responsibilities to cloud service providers, who ensure that the hardware and software are up-to-date, secure, and running efficiently. This frees up internal resources and allows businesses to focus on core operations.

Workforce Reduction vs. Workforce Efficiency:
Cloud computing reduces the need for in-house IT teams dedicated to managing servers, networks, and security. This doesn’t mean reducing staff, but rather shifting the focus to more strategic initiatives. For instance, IT personnel can now spend time on innovation, optimizing business processes, and improving customer experiences instead of just maintaining infrastructure.

A great example is Farmcrowdy, a Nigerian agri-tech SME that has leveraged cloud computing to scale its operations and streamline resource management. By moving to the cloud, Farmcrowdy eliminated the need for physical servers and reduced maintenance costs significantly. This enabled them to focus on scaling their agricultural operations across the country and improving data security, while reducing their infrastructure-related expenses by 30%.

Scalability and Flexibility: A Key Driver of Growth

Dynamic Resource Allocation:
One of the key benefits of cloud computing is the ability to scale resources dynamically. SMEs experience fluctuating demand based on market conditions. With cloud solutions, they can increase or decrease their use of computing resources based on current needs. This means an SME can handle seasonal peaks in demand without over-investing in infrastructure that will sit idle during off-peak periods.

Geographic Flexibility:
Cloud computing also enables businesses to operate beyond their immediate geographic region. In using virtual platforms hosted on the cloud, Nigerian SMEs can market and deliver their services to customers outside their locality, even globally, without the need for physical offices or infrastructure.

Collaboration & Remote Work:
The rise of the gig economy and remote work in Nigeria makes cloud computing a perfect fit for SMEs. Cloud-based platforms allow employees, partners, and customers to collaborate in real-time from any location. Tools like Microsoft Teams, Slack, and Trello enable seamless communication and project management, reducing the need for in-person meetings and improving productivity across distributed teams.

Future-Proofing:
Lastly, adopting cloud technology positions SMEs for future growth and innovation. As cloud platforms evolve, they integrate cutting-edge technologies like artificial intelligence (AI), the Internet of Things (IoT), and big data analytics, which SMEs can tap into without needing to invest in new infrastructure. This ensures that SMEs can remain competitive and ready to adopt emerging technologies as they become available.

Top Risks, Causes of Loss and Growth Drivers for TMT Sector

Harnessing Cloud Technology for Nigerian SMEs: Opportunities and Challenges

Early cloud adoption can significantly help Nigerian SMEs innovate and improve their operational efficiency. It is estimated that digitizing operations could add $150 billion to Nigeria’s GDP by 2025, representing a 7% increase in economic output. 

Despite this potential, as of 2021, only 14% of Nigerian SMEs had adopted cloud computing solutions, indicating a substantial opportunity for growth. According to the Global Digital Report, approximately 55% of Nigerians are now online, reflecting the increasing accessibility of digital tools and services that SMEs can leverage for transformation.

Moreover, the African Development Bank (AfDB) projects that digital technologies, including cloud computing, could help lift 30 million Nigerians out of poverty by 2030 by providing new economic opportunities and improving productivity. Cloud adoption can boost productivity in SMEs by up to 30%, according to a PwC study, which allows businesses to optimize operations and significantly reduce operational costs.

However, despite these promising benefits, many Nigerian SMEs express concerns regarding cloud adoption, particularly surrounding data security, the cost of implementation, and the fear of disruption to existing business processes. 

A study by the Nigerian Economic Summit Group found that 40% of SME owners worry about the security of their data in the cloud, while 35% cite high initial costs as a significant barrier to adoption. Addressing these fears requires comprehensive awareness campaigns to educate SMEs on the security measures provided by cloud service providers, as well as offering financial incentives or subsidies to mitigate initial costs.

Navigating High Internet Costs

Another major hurdle for Nigerian SMEs is the high cost of internet access. While cloud computing offers numerous advantages, the ability to effectively utilize these technologies is contingent upon reliable and affordable internet connectivity. Internet costs in Nigeria can be prohibitively high, with data prices among the most expensive in Africa. 

To navigate this challenge, Nigerian business owners can explore partnerships with local Internet Service Providers (ISPs) that offer tailored packages for SMEs. Furthermore, participating in government initiatives aimed at expanding broadband infrastructure, such as the National Broadband Plan, can help improve access to affordable internet services.

Digital Literacy and Skill Gaps

Digital literacy and the existing skill gap present additional challenges for SMEs aiming to adopt cloud technologies. Many SME employees may lack the necessary skills to utilize cloud solutions effectively, hindering overall productivity and innovation. 

According to a report by Statista, only 36% of Nigerian adults possess basic digital skills, a statistic that reflects a significant training need. To address this gap, business owners can invest in training programs that focus on cloud technologies and digital skills development. Collaborating with educational institutions and tech organizations can also facilitate knowledge transfer and equip employees with the skills required to thrive in a digital economy.

The Future of Nigerian SMEs in the Cloud

Looking ahead, the future of Nigerian SMEs in the cloud is promising but requires strategic planning and commitment to overcoming the identified challenges. As cloud adoption continues to grow, businesses that embrace these technologies will likely gain a competitive advantage in both local and global markets. 

The rise of e-commerce in Nigeria, projected to reach $29 billion by 2025, underscores the need for SMEs to leverage cloud technologies for scalability and efficiency. With the fintech sector booming, accounting for 20% of Nigeria’s GDP, SMEs can harness cloud solutions to enhance their financial management and customer engagement.

In addition, as global trends shift towards remote work and digital collaboration, cloud technologies will enable Nigerian SMEs to operate efficiently in this new landscape. Embracing cloud solutions can lead to improved customer experiences, faster time-to-market for products and services, and the ability to scale operations seamlessly. 

The National Digital Economy Policy and Strategy, which aims to foster innovation and support SMEs in adopting digital solutions, further emphasizes the government’s commitment to creating a conducive environment for digital transformation.

As Nigerian SMEs navigate the complexities of digital transformation, their resilience and adaptability will be essential in driving economic development and contributing to the country’s overall prosperity. 

By addressing concerns around data security, internet accessibility, and skill development, Nigerian SMEs can unlock the full potential of cloud computing, positioning themselves for sustainable growth in an increasingly digital world. 

Walking into the cloud infrastructure space with Nebula, Okra aims to provide a more affordable, local alternative to global giants like AWS and Microsoft Azure, tapping into the growing demand for homegrown solutions. 

This development comes at a time when Nigerian companies are seeking to cut costs associated with foreign services, especially with the devaluation of the naira and rising foreign exchange pressures.

Nebula was built to allow businesses pay in local currencies like the naira, eliminating the unpredictable exchange rates associated with dollar-denominated cloud services. 

The service also comes with lower latency, Tier 3 and Tier 4 data centres, and strong compliance with African data regulations. Okra’s CEO, Fara Ashiru, highlighted these features in a LinkedIn post, describing Nebula as an important tool for businesses looking to streamline operations without the burden of foreign exchange exposure. 

This move into cloud infrastructure is a huge one for Okra, whose origins lie in the open-banking sector. The company has gradually evolved, discontinuing some of its earlier products as it repositions itself to tap into new revenue streams. 

With the introduction of Nebula, Okra joins other Nigerian cloud providers such as Nobus and Layer3, which have also gained traction due to local companies’ growing desire to reduce their reliance on global cloud providers. 

The 2019 National Cloud Computing Policy, which encourages Nigerian government agencies to use local cloud providers, has further boosted the potential for these services.

Nebula’s features include secure, scalable, and compliant infrastructure, with a focus on a developer-friendly interface and real-time billing that ensures transparency in usage and cost. 

The platform offers various tools to assist businesses in deploying websites, apps, and workflows effortlessly. Its integration of local payment options is a significant selling point, making it easier for African companies to budget their cloud expenses without worrying about fluctuating foreign currencies.

Africa is looking inward for technological solutions, and Okra’s Nebula shows a growing shift towards self-sufficiency, with locally-built products designed to meet the continent’s unique needs. 

This cloud service, alongside other local initiatives, seeks to provide a competitive alternative to the costly services traditionally imported from the West.

Backed by TLcom, Okra aims to provide a cost-effective and reliable alternative to foreign cloud providers like AWS and Azure. 

This expansion comes as local startups seek to cut costs due to the rising inflation and high interest rates. 

Okra’s latest development is a change from its original focus on providing APIs that allow banks and financial service providers to access customer data. With this new cloud infrastructure, Okra seeks to support businesses in hosting data and running workloads efficiently. 

This expansion places Okra among a growing group of local cloud service providers in Nigeria, including Nobus Cloud Services, MainOne Cloud, Web4Africa, Galaxy Backbone, and Layer3 Cloud. 

These companies are rising to meet the demands of startups, large businesses, and government agencies looking for reliable cloud solutions.

Okra’s initial focus on open finance, where its APIs enabled third-party financial service providers to responsibly access bank information, faced challenges due to a relatively small market and significant competition. 

The fintech sector in Nigeria is also influenced by the Central Bank’s open banking regulations, adopted in March 2024. However, the absence of common data-sharing standards has limited the market for open finance APIs. Despite these challenges, Okra has been working to standardize banks’ APIs to improve the reliability of its services.

Okra is addressing the growing needs of Nigerian startups and other businesses for affordable and dependable cloud solutions.