This development marks a significant milestone in strengthening Nigeria’s digital infrastructure and elevating West Africa’s connectivity.

Building on IXPN’s existing PoP at Digital Realty’s campus located in Victoria Island, the newly activated PoP at the company’s Lekki data center extends IXPN’s reach, offering access from 12 data centers across Nigeria. IXPN is now uniquely available in all major data centers in Lagos, further positioning Lagos as a hub for local and regional interconnectivity.

Strategically located, Digital Realty’s Lekki data center serves as the landing point for the 2Africa subsea cable system, one of the world’s most expansive subsea cable projects, linking over 46 locations throughout Africa, Europe, the Middle East, and Asia.

This can deliver reliable, high-speed connectivity and can help enhance Nigeria’s role in the global digital economy.

With the opening of Digital Realty’s Lekki data center alongside its campus in Victoria Island, Digital Realty became the first carrier-neutral data center provider in Lagos to operate two campuses, offering enhanced resilience and disaster recovery options for the industry.

With improved access to IXPN at the Digital Realty’s Lekki campus, networks and service providers can benefit from expanded, resilient public peering options.

These enhancements can reduce latency, improve efficiency, support robust data exchange for content providers and cloud platforms, and enable enterprises to meet growing demands both locally and internationally.

“This activation at our Lekki campus represents a deepening of Digital Realty commitment to connecting the local and regional digital economy to global networks,” said Ike Nnamani, managing director, Digital Realty in Nigeria. “By integrating IXPN’s exchange point, we are delivering resilient peering that enables lower latency and can increase operational efficiency for our customers.”

For IXPN, the move supports its expanding community of over 130 peering members – spanning ISPs, global content, and cloud operators – delivering greater resilience and more efficient local internet traffic exchange.

“Expanding IXPN to Digital Realty’s Lekki campus is a significant step in our journey to enhance connectivity across Nigeria,” said Muhammed Rudman, CEO, IXPN. “Our members are expected to benefit from faster, low-latency pathways, allowing broader digital inclusion and fueling Nigeria’s digital economy,” Rudman continued.

IXPN continues to play a pivotal role in localising internet traffic, a key factor in performance improvements and cost reductions. Peak domestic internet traffic at IXPN surpassed 1 terabit per second (Tbps) in April 2025 and grew to over 2 Tbps by March 2026, demonstrating IXPN’s significant role in local traffic exchange.

Industry data shows that keeping traffic local reduces latency, boosts connectivity speeds, and delivers substantial annual savings for ISPs and content providers.

The Africa Tech Alliance Excellence (ATAEx) is a prestigious recognition platform that celebrates innovation, leadership, and digital excellence across Africa’s technology, fintech, telecommunications, amongst other ecosystems.

Held as part of the Africa Tech Alliance Forum (AfriTECH 5.0), the ATAEx Awards honour individuals, organisations, and initiatives that are redefining Africa’s digital future through creativity, resilience, and impact.

Each award recipient is celebrated not only for their achievements but also for their vision, ethical leadership, and commitment to leveraging technology for Africa’s sustainable development.

The ATAEx Awards continue to amplify Africa’s boldest innovators, the thinkers, builders, and change-makers shaping the continent’s digital independence in the AI era.

ATAEx Man of the Year 2025 – Prof. Obadare Peter Adewale

Celebrated for his unmatched contributions to Africa’s digital trust and cybersecurity landscape, Prof. Obadare Peter Adewale emerged as the ATAEx Man of the Year 2025; a recognition of his leadership, innovation, and lifelong commitment to advancing the continent’s digital transformation agenda.

As the Founder and Chief Visionary Officer of Digital Encode Limited, Prof. Obadare has consistently demonstrated excellence in digital security, governance, and risk compliance.

His pioneering achievements include being the first PECB Certified Data Protection Officer in Nigeria, first EC-Council Licensed Penetration Tester in Africa, and first Global PECB Certified Digital Transformation Officer.

ATAEx Technology Personality of the Year Award 2025 – Mr. George Agu

George Agu stands as a distinguished technology leader and entrepreneur whose impact on Africa’s digital transformation spans over two decades and five countries.

His visionary leadership, deep technical expertise, and passion for innovation have positioned him among the continent’s most respected voices in the IT and business landscape.

ATAEx Digital Transformation Leadership Award 2025 – Muhammed Rudman

Muhammed Rudman is a visionary technology leader and the pioneer Chief Executive Officer of the Internet Exchange Point of Nigeria (IXPN), Nigeria’s first and only neutral Internet Exchange Point.

Before leading IXPN, Rudman worked with Galaxy IT & T Limited, where he oversaw major projects including rural telephony deployments, broadband wireless networks, and VSAT-based Wide Area Networks across Nigeria and parts of West Africa.

Under his leadership, IXPN has evolved into a vital Internet infrastructure hub, improving connectivity, reducing bandwidth costs, and strengthening local Internet traffic exchange

ATAEx Fintech Leadership Personality of the Year 2025 – Dr. (Mrs.) Ebehijie Momoh

Dr. Momoh is a seasoned business executive and fintech leader currently serving as the Managing Director/Chief Executive Officer of AfriGOPay Financial Services Ltd. (AFSL), a pioneering Nigerian company driving indigenous digital payment solutions.

Under her leadership, AfriGOPay has emerged as a key player in Africa’s payment landscape, providing secure, efficient, and locally relevant financial technology infrastructure that promotes inclusion and innovation.

ATAEx Lifetime Achievement Award in Data Centre Management (2025) – Engr. Ikechukwu Nnamani

Engineer Ikechukwu Nnamani, CEO of Digital Realty (Nigeria), is a groundbreaker in Africa’s digital infrastructure landscape and a driving force behind Nigeria’s data centre evolution.

Through visionary leadership, he has built one of West Africa’s most interconnected facilities, a critical hub for Internet exchange and submarine cable interconnection.

ATAEx Cybersecurity Personality of the Year 2025 – Happiness Obioha

Happiness Obioha is a highly respected cybersecurity professional and technology entrepreneur, serving as the Chief Executive Officer of Tizel Cybersecurity, a fast-rising firm dedicated to protecting digital assets and strengthening cyber resilience across Africa.

With years of hands-on experience in information security, risk management, and digital forensics, she has distinguished herself as a thought leader and advocate for data protection, cyber awareness, and enterprise security transformation.

Other awardees;

ATAEx Blockchain Advocate of the Year – CHUKWUEMEKA ENOCH MBAEBIE; ATAEx AI Leadership in Business Transformation Award – JOHN ITODO; ATAEx ICT Innovation Storyteller Award – SAMSON AKINTARO, News Editor, Nairametrics; ATAEx Digital Reporting Excellence Award – JOAN AIMUENGHEUWA, Managing Editor, Techeconomy; ATAEx National Fintech Achievement Award – AfriGO Pay Financial Services Ltd., ATAEx Outstanding AI & Cloud Transformation Personality of the Year – Olusoji Solomon Adeyemo; ATAEx Personal Branding & Digital Influence Award – Chidi Okpala; Emerging Nigerian Literary Voice of the Year (Literature Category) – Oluwatosin Emmanuel Akinrinde.

The following companies also received the 2025 ATAEx Awards:

ATAEx PR Champion of Africa Award – SKOT COMMUNICATIONS; ATAEx Best Curved Display Smartphone Under ₦300,000 – itel;  ATAEx Champion of Digital infrastructure Award – DIGITAL REALTY (NIGERIA); ATAEx Internet Exchange Point Excellence – INTERNET EXCHANGE POINT OF NIGERIA [IXPN]; ATAEx ICT Company of the Year – ActivEdge Technologies Ltd; ATAEx Cybersecurity Company of the Year – Digital Encode Limited; ATAEx Digital Trust & Security Excellence Award– TIZEL CYBERSECURITY; ATAEx Tech Hardware Innovation Award – Tecom Concepts Limited; ATAEx Excellence in Regulatory Innovation Award – Nigerian Communications Commission (NCC).

Other categories include – Mobile App Defense Excellence Award; AI Startup of the Year; Outstanding Technology Law Practitioner of the Year; Tech Visionary Award; Global Technology Innovator Award; Rising Star in Tech Award; Excellence in Supply Chain Analytics of the Year Award; Business Intelligence Mastery Award; Smart Construction Innovator of the Year Award, and Ed-Tech Trailblazer Award. Check: africatechallianceforum.africa/ for more categories.

Speaking during a presentation at the African Tech Alliance (AfriTECH 5.0) Forum on Thursday last week, Rudman explained that local traffic exchange, where ISPs, content providers, and networks exchange data within Nigeria rather than routing it through international paths, remains the backbone of a modern, efficient internet economy.

He noted that Internet Exchange Points (IXPs) enable this by ensuring that data generated in Nigeria stays within the country, leading to faster connectivity, better user experience, and significant cost savings.

Rudman emphasised that the most visible benefit for users is dramatically reduced latency.

According to him, internet traffic routed abroad often travels through undersea cables to Europe before returning to Nigeria, resulting in delays between 150ms and 300ms. However, with local peering at IXPN, latency drops to as low as 5ms to 10ms.

“This is the difference between a frozen video call and a smooth one,” Rudman said. “For real-time applications like gaming, fintech transactions, and cloud services, milliseconds matter.”

He added that lower latency boosts productivity for businesses and enhances the performance of modern digital tools.

Rudman listed data sovereignty as another critical benefit of keeping traffic local, and explained that when Nigerian data is forced to travel through foreign infrastructures, it exposes the country to unnecessary security and surveillance risks.

“Local traffic exchange keeps Nigerian data protected under Nigerian laws and reduces exposure to foreign interception,” he stated.

He also stressed that maintaining local routing is essential for continuity during cable cuts. “If an undersea cable fails, locally hosted services, such as .ng websites and email, continue running normally,” he added.

Citing a major milestone, Rudman revealed that the Internet Exchange Point of Nigeria has recently crossed 2 terabits per second (Tbps) in peak domestic traffic, and described this as evidence of the rapid localisation of Nigerian internet traffic, with some members already achieving up to 70% traffic localisation.

According to him, this growth has saved the Nigerian economy hundreds of millions of dollars in international bandwidth costs, positioned Lagos as a digital hub for West Africa, and provided the foundation for local innovation in fintech, media, cloud services, and more.

“A fast, cheap, and reliable internet is the platform upon which new digital businesses are built,” he said.

Rudman urged policymakers, telecom operators, businesses, and global content providers to deepen their commitment to local peering, and recommended that government recognises IXPs as critical national infrastructure, mandate public-sector peering, and create policies that incentivise local hosting.

He further noted that while Telecoms and Internet Service Providers (ISPs) peer more aggressively to strengthen the ecosystem, content providers such as Google, Meta, Netflix, and the rest, deploy more local caches.

While urging businesses to choose ISPs that participate in local exchange and adopt Nigeria’s online identity such as .ng, the IXPN Chief Executive posited that local traffic exchange is no longer a technical luxury but a cornerstone of Nigeria’s digital sovereignty, economic competitiveness, and national security.

“Local traffic exchange is the foundation for a faster, safer, and more sovereign digital future,” he said.

The fifth edition of the Africa Tech Alliance Forum, (AfriTECH 5.0), which held on Thursday, November 13, 2025, at the Oriental Hotel, Lagos, had as its theme, “AI & Sovereign Tech: Building Africa’s Digital Independence.”

Speaking to an audience of telecom executives and stakeholders at the Lagos Continental Hotel, Rudman stressed Nigeria’s overwhelming dependence on mobile internet.

“99.98% of the total internet users in Nigeria are using mobile devices. Only 0.2% are on fixed and unfixed wire. This is from the NCC’s website. It’s official.”

That single statistic, he said, explains the nation’s weak internet backbone and poor local content delivery. 

In contrast, South Africa, with over 50% of users on fixed connections, manages to retain and circulate massive internet traffic internally. Brazil, he added, is now the second largest country by network size globally, thanks to a deliberate policy to empower over 10,000 local internet service providers. “They are able to domesticate almost 90% of internet traffic in Brazil,” he noted.

Nigeria, Rudman warned, is trailing far behind because of neglect and lack of coordinated policy efforts at both federal and state levels. “Sometimes the government might not really be keen in solving those issues, and even if the federal government wants to, the state legislations are entirely different,” he said. 

For any reform to work, he stressed the need for strong lobbying at the state level and continuous pressure from media and stakeholders.

Beyond infrastructure, Rudman also spoke on the nation’s faltering education system, blaming its collapse on entrenched interests. 

He called out policymakers for failing to understand the link between education and national development, using India and Singapore as examples of countries that invested heavily in human capital to achieve global relevance.

“India is spending a billion dollars training people. That’s why you have all these humans from all these major companies in the world from India. They are churning out 70 to 100 unicorns every year. The entire African continent has only seven. We will keep dreaming, but the government must do their responsibility.”

He spoke about institutions like the Digital Bridge Institute (DBI), questioning their contribution to the telecom sector. “We have DBI, right. What is DBI doing in terms of the impact on the telecom sector? They have the financial model, the amount of land that they have in Lagos and Abuja… There is a deficit in human capital, human skills, yet they are not doing it.”

Rudman proposed the creation of a dedicated ICT Think Tank to drive training and education strategy, one that would work directly with universities and not rely on empty bureaucratic structures. But he left no doubt that the onus lies squarely on government to make the first move.

“The President of Nigeria must make deliberate attempt to solve this. It is not for ATCON to go and change advocacy. We should consistently push for government to do the right thing.”

Nigeria’s telecom sustainability cannot be built on mobile data alone, nor can its digital economy grow without radical education reform and committed leadership.

The event, themed “Impact of Adjacent Agencies on Nigerian Telecom Sector: The Way Forward,” was an in-depth conversation about the structural and regulatory issues stalling industry growth.

The President of ATCON, Tony Emoekpere, opened the meeting with a reflection on the journey so far. “Two years ago, I was entrusted with the mandate to lead this association, and I’ve done so to the best of my ability with absolute focus,” he said. 

He noted that the association has grown with at least 27 new member companies joining during his tenure, and that ATCON had engaged with over 75 strategic global and local events to defend industry interests.

However, he stressed the pressing concerns about the growing influence of non-core regulatory bodies in telecom operations. 

Emoekpere led a no-holds-barred discussion, pointing out that several agencies outside the industry were imposing levies and regulations, thereby disrupting operations.

“We have other agencies that are trying to create some form of levies, looking for ways to impose charges right away on their operations,” he said. “We don’t want to be in an environment where our investment is totally at risk, or where people don’t even want to invest in our sector.”

Participants described the actions of these adjacent agencies as intrusive and economically damaging. Multiple operators spoke about what they termed regulatory duplicity, instances where different state agencies imposed overlapping charges and policies. 

A stakeholder stated: “We already face enough ends. We don’t want to have other people taking up the responsibility.”

The need for a one-stop-shop regulatory model was a recurring recommendation. “In some states, you have the State Revenue Service, the State Infrastructure Agency, the Urban Planning Agency – all coming after you for the same reason. It is not sustainable,” another stakeholder said.

The discussion turned inward when Engineer Ikechukwu Nnamani, CEO, Digital Realty (Nigeria) and former president of ATCON, noted industry indiscipline and undercutting among telecom players.

He pointed out that while some members advocate for tariff increases, others reject it, leaving the entire sector weakened. “We’re in the same industry, and they are better capitalised than us… we’re hurting ourselves,” he stated.

This disunity was seen in competition for bank contracts. “The same bank writes you and says decrease your service price, even after telling you that your cost of capital has gone up,” he added. “We don’t function as an association. We don’t function as a group. So when they harass us, we go back and start competing amongst ourselves.”

Vice President of ATCON and CEO of the Internet Exchange Point of Nigeria (IXPN), Muhammed Rudman, stated: “99.98% of internet users in Nigeria access it via mobile, while only 0.2% use fixed lines,” a sharp contrast to South Africa where over 50% of users are on fixed lines, enabling better in-country data traffic retention. 

“Brazil is now the second largest country with internet networks because they domesticated 90% of their traffic through strong associations.”

As tensions rose, Emoekpere reaffirmed ATCON’s focus on industry-wide cohesion. He revealed plans to set up an Industry Think Tank Committee to establish standardised guidelines for engagement with adjacent agencies.

“We must start having industry committees, think tanks to handle some of these matters, so we can now come up with a position,” he said.

Calls for a renewed code of conduct were made, and several members volunteered for roles in committees aimed at solving these regulatory and operational issues. “We must move from talk to structure,” he asserted.

The meeting also touched on education and workforce development, with members agreeing that ATCON must play a more active role in impacting the academic curriculum to meet telecom industry demands.

The group resolved to explore partnerships, virtual training models, and institutional support for under-resourced tertiary institutions.

Closing the session, Emoekpere said, “ATCON is not just an association, it is a collective commitment to action. We do make an impact, and they are actually looking forward to our contributions.”

The newly elected executives were sworn in with high expectations. The first task on their table: push back against regulatory encroachment and unify a fractured industry.

This milestone signifies a major leap forward in developing Nigeria’s internet infrastructure and underscores the critical role of local internet infrastructure in driving economic growth, innovation, and connectivity for millions of Nigerians.

“This milestone is more than just a number. It’s a symbol of Nigeria’s digital maturity and our united strides towards becoming a tech-driven nation. By keeping local internet traffic within Nigeria, we reduce costs, improve speeds, and ensure our digital economy thrives with homegrown infrastructure.” said Muhammed Rudman the CEO of IXPN. “Achieving 1 Tbps is a significant victory for Nigeria’s ICT ecosystem, a breakthrough for domestic internet traffic. It serves as a catalyst, enabling millions of Nigerians to enjoy faster, more affordable, and resilient internet connectivity.”

What it means for Nigeria 

1 Terabit per second is a game-changer for Africa’s most populous country. To put it in perspective:

• Mega Video Calls: A speed of 1 Tbps can support over 1 million concurrent Zoom calls, allowing students, entrepreneurs, and professionals to connect and drive Nigeria’s digital revolution.

• Streaming Frenzy: With 1 Tbps, more than 200,000 people can stream HD Nollywood films or movies on Netflix simultaneously without any buffering or interruptions.

• Data Superpower: This speed enables the transfer of the entire contents of 50,000 smartphones—including photos, apps, and videos—in just one second.

For Nigeria, hitting this milestone means reducing reliance on international bandwidth, decreasing latency for local services, and strengthening our position as Africa’s digital heartbeat.

This milestone is a testament to the power of collaboration, innovation, and the relentless pursuit of a faster, more connected Nigeria.

This accomplishment goes beyond technical advancements; it has significant economic implications.

By encouraging local traffic exchange, IXPN reduces dependency on international bandwidth, leading to:

• Significant Cost Savings: By utilizing local data exchange, Nigerian businesses can save millions of dollars annually on international bandwidth fees.
• Enhanced Speed and Connectivity: With reduced latency, users experience smoother streaming, gaming, and real-time services, enhancing their overall online experience.
• Increased Resilience: Strengthening Nigeria’s internet infrastructure protects against global disruptions, ensuring consistent access to vital services such as healthcare and education.
• Improved Efficiency: Optimizes digital services like fintech, edtech, e-commerce, and e-health, propelling innovation and growth in these sectors.

Surveys conducted among IXPN members over the years have shown a growing percentage of local internet traffic in Nigeria. A recent report indicates that some connected members can localize or domesticate up to 70% of their internet traffic through IXPN.

“As more content providers, ISPs, banks, and public institutions localize their traffic through the IXP, end users benefit directly,” added Raphael Iloka, marketing manager. “We’re not just routing data — we’re building the foundation for Nigeria’s digital economy.”

The 1 Tbps peak highlights the remarkable impact of collaboration among all stakeholders. This milestone is a significant achievement not only for IXPN, but for the entire ICT ecosystem.  IXPN deeply appreciates the vital contributions of all stakeholders involved.

He thanked members and partners of IXPN, saying, “Your trust and participation have been essential to our growth. Together, we have established a hub where networks can interconnect, innovate, and thrive”.

“To the government and regulators, we express our sincere appreciation to the Nigerian Communications Commission (NCC) for all its support over the years and its vision of a digitally inclusive Nigeria”.

“We are grateful to partner organizations like the Internet Society (ISOC). Your support and advocacy in domestic peering empower us all.

Earlier in his presentation, Raphael Iloka, technical sales & marketing manager at IXPN said that reaching 1 Tbps is just the beginning.

“As data demands skyrocket with AI, IoT, 5G, and immersive technologies, IXPN is committed to staying ahead of the curve.

Here’s how:

Scaling Infrastructure:

“We are investing in advanced hardware and software to support multi-terabit capacities.

Enhancing Resilience:

“We are strengthening our network to ensure uptime, security, and adaptability in an ever-changing digital landscape.

Empowering Underserved Communities:

“We aim to expand our reach to rural areas, bridging the digital divide, and supporting agritech, edtech, and telehealth.

Strengthening Africa’s Digital Sovereignty:

“Partnering with regional IXPs to keep Africa’s data on the continent”.

On his part, Uchechukwu Ugwuanyi, assistant general manager at IXPN said that as Nigeria’s largest Internet Exchange Point, a non-profit and membership-based organization, they are serving as a critical hub for interconnection between ISPs, content networks, enterprises, and digital platforms.

“Through its neutral and high-capacity infrastructure, IXPN facilitates the efficient exchange of internet traffic within Nigeria, promoting faster and more reliable connectivity across Nigeria and the wider West African region”.

IXPN serves as West Africa’s premier Regional Internet Exchange Point (RIXP), boasting an impressive network of over 130 interconnected active members.

This includes industry giants such as Google, Meta (Facebook), Microsoft, TikTok, Amazon, and all Nigerian Mobile Network Operators (MNOs), among others.

By establishing a single connection to any of the 13 IXPN sites across Nigeria, members gain unparalleled access to one another, fostering collaboration and innovation.

IXPN’s infrastructure includes seven strategically located sites in Lagos, supplemented by locations in Abuja, Port Harcourt, Enugu, Kano, Delta, and Gombe.

The Lagos Points of Presence (POPs) are all interconnected through high-capacity links, ensuring robust connectivity that extends to other cities.

This initiative is crucial for bridging the digital divide, bringing essential internet services to unserved and underserved areas.

The Internet Exchange Point of Nigeria (IXPN) confirmed this milestone, reiterating the country’s goal to localise digital infrastructure and reduce reliance on foreign bandwidth.

At 1Tbps, the speed and volume of internet traffic handled locally in Nigeria have grown to the level where over a million Zoom calls could run at once without issues. It also means that around 200,000 users could stream high-definition Nollywood films at the same time without any buffering.

IXPN’s Chief Executive Officer, Muhammed Rudman, described the achievement as a huge one. “For Nigeria, hitting this milestone means reducing reliance on international bandwidth, decreasing latency for local services, and strengthening our position as Africa’s digital heartbeat. This milestone is a testament to the power of collaboration, innovation, and the relentless pursuit of a faster, more connected Nigeria.”

This means more data now moves within Nigeria, handled by domestic infrastructure. This also comes with real financial and functional benefits. Service providers no longer need to depend so heavily on international cables or foreign data centres, which means fewer costs and less vulnerability when external connections break down.

Again, Nigerian businesses could save millions of dollars annually by exchanging traffic locally. That’s money that can now be redirected towards building better services or expanding digital capacity. And users? They get faster connections, smoother experiences on fintech apps, and better results when attending virtual classes or meetings.

Not just tech firms will benefit, banks, e-commerce platforms, schools, hospitals and any service that requires a steady internet will find stability in this. 

Rudman pointed out that strengthening local infrastructure doesn’t just improve quality of service; it also provides insurance against global internet disruptions.

Years of steady growth in local traffic contributed to this. Surveys among IXPN members show that some now keep up to 70% of their internet traffic within Nigerian borders. That’s a sharp contrast to just a few years ago, when the bulk of data had to travel across the world and back, introducing delays and extra costs.

Raphael Iloka, the organisation’s marketing manager, noted the human side of this transformation. “As more content providers, ISPs, banks, and public institutions localize their traffic through the IXP, end users benefit directly. We’re not just routing data, we’re building the foundation for Nigeria’s digital economy.”

IXPN is the country’s largest Internet Exchange Point and serves as a key node for West African connectivity. Over 130 organisations are already linked through its network, including giants like Google, Microsoft, Amazon, and TikTok, alongside Nigeria’s mobile network operators.

Its reach goes beyond Lagos, IXPN has active exchange points in Abuja, Port Harcourt, Kano, Enugu, Delta, and Gombe. More are on the way. The organisation has plans to establish additional PoPs across the country by 2025, attract more content providers, and deploy technologies like caching to help platforms run more efficiently.

These initiatives have also earned IXPN recognition globally. It now operates as a MANRS-compliant exchange point, a standard that signals secure and trustworthy internet routing.

This progress is not accidental. It comes from deliberate investment, better collaboration among service providers, and an understanding that Nigeria can’t afford to outsource its internet forever, and so, the traffic growth is commendable.

Ugwuanyi explained the importance of understanding Internet Exchange Points (IXPs) to appreciate the role that these infrastructures play in the tech space.

He stated: “Before we look at the role of IXPN to the ecosystem, I think it’s prudent for us to very briefly look at what an Internet Exchange Point is. Let’s imagine a region, say Lagos, and in this particular region, there’s just one service provider.”

This background, he explained, is essential for understanding the nuances of network communications.

The Function of IXPs in the DNS Industry

Still speaking at the Tech Convergence 1.0, Ugwuanyi delved into the technical details of how IXPs work, noting how they impact the efficiency of DNS operations.

The Internet Exchange Point of Nigeria, for example, connects over 128 networks, and its average traffic reaches over 800 Gbps. 

IXPN operates in all major data centres across Nigeria, including ICNL, Digital Realty, Rack Centre, MDXi, Cloud Exchange, ADC, and OADC. Added to this, IXPN has points of presence in Abuja, Kano, Port Harcourt, Enugu, and Delta.

“The Internet Exchange Point of Nigeria, before we delve into the roles it plays, connects over 128 networks, with average traffic exceeding 800 Gbps. We are present in all of the major data centres in Lagos, including ICNL Digital, formerly medallion, Rack Centre, MDXI, Cloud Exchange, ADC, and OADC. We also have other points of presence in Abuja, Kano, Enugu, and Delta.”

Ugwuanyi explained the important role that IXPs play in reducing latency in network communications, which is essential for the efficient functioning of the DNS infrastructure. He illustrated this by comparing the latency between networks connected to IXPN and those that rely on submarine cables.

“For connection to IXPN, all these networks can reach each other at less than one millisecond. The average time to reach these DNS servers is less than one millisecond, as opposed to going through submarine cables, which takes no less than 90 to 100 milliseconds.”

This improvement in speed ascertains the effectiveness of IXPs in reducing latency, which is essential for faster, more reliable internet access, especially for DNS resolutions.

The Economic Benefits of IXPs

Ugwuanyi also emphasised the economic advantages of using IXPs. He explained that on average, most ISPs exchange 50-60% of their traffic at IXPN. This has a significant impact on cost savings for service providers.

“On average, most of the members exchange 50 to 60% of their traffic at IXPN. What this means is that 50-60% of a typical ISP’s traffic goes through the exchange point.”

He used Lagos as an example to highlight the difference in cost between using IXPN for local traffic versus using international transit. 

For instance, a one Gbps connection at IXPN costs around N200,000, while the cost for a similar connection using international transit is much higher, often around N1.2 million after negotiation. The cost difference is obvious, and it shows the economic benefits of localising traffic.

“If you look at the cost of a one Gbps transit, you’re looking at N1.2 million if you negotiate very well. The cost of the same one Mbps connection to IXPN is N200,000, which is a significant saving for providers.”

Outside Lagos, the cost of international transit increases drastically, which further stresses the economic advantage of using IXPs.

“One of our members in Ibadan told me that one Gbps transit connection costs almost N4 million there. So you can see how the reduction in cost of operation is quite significant.”

Enhancing Security and Compliance

Another key aspect of IXPs is their role in enhancing the security and compliance of internet traffic. By localising internet traffic, IXPs reduce the number of intermediaries involved in data transmission, thereby decreasing the exposure to potential attacks. Ugwuanyi explained:

“If the traffic is local, there are fewer players who can intercept and attack the traffic. It also reduces the exposure to attacks like Distributed Denial of Service (DDoS), which is a significant threat when traffic passes through multiple providers and hubs.”

He also discussed how IXPs help with data localisation and compliance with regional regulations. In Nigeria, some laws prevent operators from storing user data outside the country, and IXPs help ensure compliance with such data localisation laws.

“Nigeria has some data localisation laws and policies. For example, operators are prevented from keeping their user data outside Nigeria. An IXP would facilitate and make it possible for players to comply with these regulations.”

Ugwuanyi stressed the importance of IXPs in the tech space, in terms of improving network performance and also reducing costs and enhancing security.

He noted that IXPs help in improving the efficiency, affordability, and security of internet services, making them an essential part of the technological infrastructure in Nigeria and beyond.

“The reduction in cost of operation and improved network performance provided by IXPs is precise. In Lagos, for example, the difference between using IXPN and international transit is very noticeable. The role of IXPs in improving connectivity and reducing costs is undeniable.”

This was the emphasis of the Africa Tech Alliance Forum (AfriTECH 4.0), held recently in Lagos, where industry experts, policymakers, and SMEs discussed innovative strategies for leveraging technology to leapfrog into the digital future.

Themed “Leapfrogging Digital Transformation for Future of Africa’s Economy,” AfriTECH 4.0 accentuated the indispensable role of SMEs, which form the backbone of Africa’s economy. 

According to the International Finance Corporation (IFC), SMEs contribute approximately 90% of businesses and 50% of employment across the continent.

Yet, many face challenges in accessing the tools and opportunities necessary for growth. 

The lessons from AfriTECH 4.0 provide a guide for SMEs to build resilience and promote innovation while staying competitive globally.

Financial Inclusion: Empowering SMEs Through Technology

Mr. Biram Fall, regional general manager, QNET sub-Saharan Africa, highlighted the massive possibility of financial inclusion in Africa, noting that “with over 350 million unbanked adults, there is a significant potential for financial inclusion and digital solutions for Africa.” 

He stressed the transformative power of fintech in providing essential financial tools like savings accounts, credit, and insurance, all of which are important for SMEs seeking economic independence.

The demand for financial inclusion aligns with projections of a $75 billion e-commerce market in Africa by 2025, driven by internet access and smartphone adoption. However, Fall cautioned against infrastructural and cultural obstacles: “Limited banking infrastructure and high cash dependency hinder digital engagement.” 

SMEs can benefit by embracing mobile wallet solutions, which simplify transactions and boost consumer trust, thereby opening access to a wider e-commerce market.

With over 60% of Africans under 25, young entrepreneurs are leading digital growth by building scalable tech solutions, as emphasized by Jude Ozinegbe, founder/convener at Cyberchain. 

Similarly, women-focused programmes and local initiatives supporting female entrepreneurs ensure inclusivity. In empowering these demographics, SMEs can benefit from diverse perspectives and creative solutions, boosting innovation and long-term growth. 

These will go beyond bridging gender gaps to also stimulating a culture of innovation that strengthens local economies.

Blockchain and AI: Redefining SME Operations

In his keynote, Kashifu Inuwa Abdullahi, director-general of the National Information Technology Development Agency (NITDA), emphasized the disruptive capability of blockchain and artificial intelligence (AI). 

He stated, “Blockchain and artificial intelligence are powerful technologies that offer Africa unprecedented opportunities. By strategically integrating these technologies, we can propel Africa forward as a dynamic leader in the global digital economy.”

For SMEs, blockchain presents avenues to secure transactions, ensure transparency, and reduce operational inefficiencies. 

Abdullahi projected that blockchain could contribute $300 billion to Africa’s GDP by 2025, especially through financial inclusion and governance applications. 

Meanwhile, AI-powered tools offer SMEs the ability to optimize resources, automate operations, and drive productivity, particularly in sectors like agriculture, healthcare, and education.

Challenges SMEs Face in Adopting Emerging Technologies

While the prospects of digital transformation are evident, SMEs often encounter limitations:

• Digital Literacy: Many SME owners lack the skills needed to effectively use advanced technologies.
• Cost of Technology: Financial restrictions limit access to tools like AI and blockchain.
• Resistance to Change: Traditional businesses often hesitate to digitise operations.
• Infrastructure Gaps: Limited connectivity in rural areas affects adoption rates.

Addressing these issues requires collaboration between governments, the private sector, and educational institutions. Through training, subsidies, and partnerships, these challenges can be mitigated to enable SMEs to unlock their potential.

Cybersecurity: Safeguarding the Digital Future of SMEs

Dr. Obadare Peter Adewale, chief visionary officer of Digital Encode Limited, addressed the increasing risks accompanying digital transformation. 

He noted, “The rapid pace of technological advancements has introduced new cybersecurity threats and challenges.” For SMEs, which often operate with limited resources, powerful cybersecurity frameworks are essential to protect against cyberattacks and fraud.

Obadare highlighted that “Healthcare, financial services, and cloud providers remain prime targets, with attacks on critical infrastructure and IoT expected to intensify.” 

The takeaway for SMEs? Adopting a security-first culture, supported by partnerships between governments and private sectors, is essential to ensuring resilience in a digitally interconnected economy.

Useful Tips for SMEs

SMEs looking to make maximum use of technology can follow these steps:

1. Start Small: Begin with low-cost digital tools like WhatsApp Business or mobile payment systems.
2. Leverage Training Opportunities: Join government or private sector training programmes focused on digital literacy and entrepreneurship.
3. Collaborate with Fintechs: Partner with startups that can provide tailored solutions for SME needs.
4. Explore Funding Options: Tap into grants and microfinance opportunities aimed at promoting tech adoption.

Digital Payments: A Game-Changer for SMEs

Mrs Ebehijie Momoh, CEO of AfriGoPay Financial Services Limited, stressed the growing importance of digital payments in facilitating financial inclusion. 

She noted that “Nigeria’s digital payments landscape is experiencing rapid expansion, with 2023 alone seeing an estimated $730 billion in transactions.” 

For SMEs, innovations like the AfriGo card, which processes transactions in local currency, reduce reliance on foreign exchange and enable faster capital turnover.

Momoh underlined the need for accessibility, affordability, and product diversity in digital payment solutions. She added that “fintech companies are critical in ensuring affordable and accessible services, supported by regulations and a robust digital infrastructure to enable responsible and sustainable financial growth.” 

SMEs that leverage these tools can simplify operations, reduce costs, and expand their market reach.

Policy and Accountability: Bridging the Gap for SMEs

Muhammed Rudman, CEO of the Internet Exchange Point of Nigeria (IXPN), critiqued the contrast between policies and their execution. He stated, “We have excellent policies, but when it comes to implementing those policies, we are really, really lagging behind.” 

Policy implementation is necessary for SMEs to access the infrastructure and services needed for digital transformation. Rudman called for tougher penalties for non-performance to ensure government accountability, a measure that could directly benefit SME growth.

Collaboration: The Key to Digital Transformation

A recurring theme at AfriTECH 4.0 was the importance of partnerships. From QNET’s financial literacy programmes that promote entrepreneurship to NITDA’s focus on digital literacy, collaboration between governments, private sectors, and SMEs was deemed essential. 

“True progress requires collaboration,” stated Mr. Biram Fall, emphasizing the role of cross-sector partnerships in building a digital economy that is inclusive and resilient.

The insights from AfriTECH 4.0 reiterates that SMEs are at the heart of Africa’s digital transformation and financial inclusion, leveraging emerging technologies like blockchain and AI, adopting strong cybersecurity measures, and utilizing innovative digital payment systems, will help SMEs drive economic growth and resilience.

However, the journey requires accountability, supportive policies, and strategic collaborations to reach Africa’s goal of a competitive digital economy. 

“Africa’s potential in the digital age is boundless… We are not just spectators in the digital revolution; we are pioneers. Let us seize this moment to place Africa at the forefront of global innovation.” – Kashifu Abdullahi.

He made this call at The Africa Tech Alliance Forum (AfriTECH 4.0) which took place yesterday, November 7, 2024, at Oriental Hotel, Lekki Road, Lagos. 

Centred around the theme: “Leapfrogging Digital Transformation for Future of Africa’s Economy,” the forum convened industry leaders, policymakers, and technology advocates to discuss Africa’s digital growth. 

Citing Nigeria as an example, Rudman stressed the disparity between the abundant digital policies and their lack of effective action, reflecting on former President Olusegun Obasanjo’s comment that “Nigeria is the graveyard for excellent policies.” 

He added that the lack of policy execution is particularly problematic in sectors essential to economic growth and national inclusivity.

While noting the strides made in other countries, Rudman pointed to India as an example, where significant investments have reached underserved areas. 

In Nigeria, he noted, the Federal Ministry of Communications and Digital Economy, led by the Minister, has invested approximately $2 billion into initiatives that extend over 90,000 kilometres of broadband infrastructure into rural areas to connect the unserved population. 

Added to this, Rudman mentioned the Central Bank of Nigeria’s financial inclusion initiatives and the Nigerian Communications Commission’s (NCC) Universal Service Provision Fund (USPF) aimed at ensuring access to digital and financial services across the country.

Despite these goal-driven projects, Rudman emphasised the gap between policy and practice. He said, “We have excellent policies to achieve that, but when it comes to implementing those policies, we are really, really lagging behind, and it’s the responsibility of the government to ensure that those policies are actually achieved.” 

He stressed the importance of government accountability in bridging this divide, calling it “a million-dollar question on how government can be achieving policies they have done.”

Rudman proposed implementing tougher penalties for non-performance as a potential solution, saying, “Unless there is going to be a high penalty for not delivering… then yes, maybe it can happen.” He argued that without tangible consequences, policies may continue to stagnate, hindering Nigeria’s potential in the digital economy.

Rudman’s address at AfriTECH 4.0 encompassed the fact that Nigeria has strong policies aimed at digital transformation, but it remains essential to ensure these plans are implemented with diligence and accountability.