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. 

Moderated by Olawale Owoeye, the Managing Director of Cedarview Communication Limited, the ngPIF panel featured key industry figures including Muhammed Rudman, CEO of Internet Exchange Point of Nigeria (IXPN), Dr. Ibiso Kingsley-George, Assistant Director at the Nigerian Communications Commission, Dr. Krishnan Ranganath, Regional Executive – West Africa at Africa Data Centres, and Abiodun Sanni, Senior Sales Manager at Rack Centre Limited.

Olawale Owoeye initiated the discussion by contextualizing the industry’s current standing. He highlighted two crucial aspects: the progress toward the 2025 broadband penetration target and the ongoing initiatives driving the digital economy. Dr. Ibiso Kingsley-George, representing the Nigerian Communications Commission, provided a detailed update on the broadband penetration status. 

As of August 2023, the country had achieved 45% broadband penetration whereas it has set 70% target by 2025. 

She emphasized the importance of developmental regulation and synergy among regulators, underlining the need for innovative solutions within the sector, digital literacy programs, and data privacy protection.

“The National Broadband Plan of 2025 in Nigeria aims to achieve a 70% completion rate by the end of 2025. Currently, as of August 2023, the progress stands at 45%. To meet this target and align with the National Digital Economy Policy and Strategy (NDSS), a comprehensive approach is being adopted.

In pursuit of these goals, developmental regulation practices, combining regulation with innovation, have been implemented. Synergy among various regulatory bodies is emphasized, ensuring a harmonious working relationship. 

Key stakeholders, including the central bank and financial institutions, collaborate to foster a revenue-neutral, departmental approach to digital identification.

The licensing framework is being revamped, with a focus on exploring new license areas and encouraging innovations within the sector. This approach allows for the exploration of innovative ideas without fear of immediate retribution, fostering a conducive environment for market growth.”

Muhammed Rudman, CEO of IXPN, shed light on the dynamics between major and smaller players in the market. 

He highlighted that out of 159.5 million internet subscribers in Nigeria, a staggering 99.8% were on mobile networks. Despite their small market share, smaller ISPs played a significant role in handling traffic, especially through exchange points. Rudman emphasized the need to empower these smaller providers to expand internet access in remote areas. Training programs and capacity building initiatives were essential, allowing these providers to compete effectively and contribute meaningfully to internet adoption.

“Despite the announcement of 5G technology, its adoption remains low, with a mere 0.8% penetration, primarily limited to specific locations like Victoria Island. The challenge lies in the affordability of 5G devices, making it inaccessible for most individuals, especially those in remote regions.

To bridge this gap, initiatives are being undertaken to establish community networks and smaller ISPs in underserved areas. By focusing on providing affordable internet services to these communities, the aim is to enhance digital access and adoption. These efforts signify a commitment to ensuring that the digital revolution reaches every corner of Nigeria, empowering individuals and communities through accessible and affordable internet connectivity.”

Muhammed Rudman emphasized the need for simplified government policies in the telecommunications sector. 

He pointed out the complexity of current regulations, which cover various aspects such as hardware, infrastructure, content, and access. Rudman highlighted the challenges faced by small service providers, especially in accessing networks, and urged the government to find innovative funding solutions for them. 

He raised concerns about the affordability of internet services for citizens, citing instances where internet subscribers dropped due to financial constraints and emphasized the critical role of telecom and internet access in national development.

He further urged the government to prioritize these sectors to empower citizens and break the cycle of poverty and insecurity, stressing the importance of protecting internet infrastructure and ensuring affordable access to devices for network expansion.

Dr. Krishnan Ranganath, from Africa Data Centres, discussed the key role of data centers in the digital economy. He noted the recent influx of new players and the expansion of existing ones, aligning with the National Broadband Plan and digital economic policies.

Ranganath highlighted the importance of regulations such as the Nigerian data protection regulations and the need for a collaborative ecosystem, stressing the necessity of high-quality networks, affordable internet, and shared infrastructure to support the growth of data centers and the broader digital economy.

“The overarching goal is to ensure affordable internet access permeates every corner of Nigeria. This objective necessitates the establishment of a robust and high-quality network infrastructure that spans across the nation. Such a network not only facilitates widespread internet accessibility but also acts as a catalyst for the growth of the data center business. The expansion of the network infrastructure creates a larger market for data services, thereby driving the demand for data centers in various regions of the country.

In essence, the growth of the data center business is intricately linked to legal mandates, improved connectivity through undersea cables, and a collaborative effort among stakeholders to build a comprehensive and high-quality network infrastructure. By addressing these aspects collectively, Nigeria can pave the way for affordable internet access, enabling businesses to flourish and ensuring the digital transformation reaches every corner of the country.”

Abiodun Sanni of Rack Centre Limited emphasized the importance of government policies that drive investment. He acknowledged the private sector’s proactive approach in providing services where needed, even without direct government intervention.

Sanni advocated for policies addressing critical issues like power, taxation, and infrastructure. He also urged the government to focus on supporting Small and Medium-sized Enterprises (SMEs), which contribute significantly to the country’s GDP and employment.

“The public sector should concentrate on Small and Medium-sized Enterprises (SMEs). SMEs contribute over 80% of employment in the country. Creating a conducive environment for them is crucial. In terms of regulation and policies, governments should focus more on this sector. SMEs make up about 45% of the GDP, underscoring their economic importance. When it comes to policies, power is a critical factor. Stable power supply is essential, especially for data centers. We anticipate potential power price increases in the coming months, but this should align with the quality of power supply.

Moreover, taxation policies need to be favorable for our sector. Ensuring adequate power supply to regions where data centers are being established is vital. If the government expects us to set up data centers in various locations across the country, they must provide the necessary infrastructure, including reliable power sources. These are the policy changes we are advocating for in terms of infrastructure development.”

Dr. Ibiso Kingsley-George elaborated on the complexities of regulations within the industry. 

She clarified the areas within the Nigerian Communications Commission’s purview, including ensuring competition, proper resource utilization, and consumer protection. 

While highlighting the challenges faced, she also emphasized ongoing efforts to collaborate across government agencies, address infrastructural vulnerabilities, and engage with state governments on right-of-way charges.

The panel discussion at the Nigerian Pioneering & Interconnection Forum reiterated the need for collaborative efforts between government bodies, regulatory agencies, and private sector players. 

Simplifying regulations, empowering smaller service providers, and fostering an environment conducive to investment are inevitable in navigating the regulatory challenges. 

As Nigeria steers toward its 2025 broadband penetration goal and digital transformation objectives, continued dialogue and strategic partnerships will be essential in shaping the country’s digital future.

Prominent figures at the 2-day event shared insights and initiatives, reflecting the progress made in the sector and the path forward.

Joshua Joshua, Operations Manager at Access and Content Limited and Programme Manager for Nigerian Pioneering and Interconnection Forum, spotlighted Nigeria’s internet penetration, emphasizing its growth which fell slightly from around 47% in 2022 to 45.57% in August 2023. 

He highlighted an essential challenge: the disparity between the number of people peering and the limited shared capacity. His statistics revealed 540 GB of shared capacity, with Lagos standing at 524 GB, followed by Abuja with 5.6 GB and Kano with 0.6 GB.

Prof Adewale Adedokun, Coordinator of ngNOG, provided historical context, noting the group’s key role in Nigeria’s digital narrative. With almost two decades of experience, ngNOG has been a pioneer of ICT capacity building in the country. 

Prof Adedokun credited the growth of the Nigerian Peering and Interconnection Forum to ngNOG’s extensive work, highlighting the event’s transformation from a workshop discussion to a prominent national event.

Muhammed Rudman, CEO of IXPN, delved into the intricate web of internet networks, stressing the importance of bringing together key actors in the ecosystem, from internet service providers to content distribution networks. IXPN’s mission, as articulated by Rudman, is to keep Nigeria’s internet traffic local. By encouraging domestication, IXPN aims to reduce the nation’s dependency on foreign networks, fostering both security and financial stability.

Engr. Ubale Maska, Executive Commissioner of Technical Services at the Nigerian Communications Commission, outlined the regulatory landscape’s significance. 

He emphasized the NCC’s commitment to deepening internet penetration within the country. In keeping internet traffic local, Nigeria can not only enhance national security but also bolster its economy. 

Engr. Maska called on stakeholders to strive for at least 90% of the country’s internet traffic to be kept local, marking a transformative step toward digital self-reliance.

The Nigerian Peering and Interconnection Forum (ngPIF) highlights Nigeria’s collective vision for a digitally interconnected future. 

Through collaborative efforts, strategic investments, and regulatory support, the nation is well positioned to bridge the digital divide and become a leading force in Africa’s digital landscape. 

As these leaders and visionaries at ngPIF continue to drive progress, Nigeria is on the brink of a new era, one where local connectivity fuels economic growth, fosters innovation, and empowers millions with the transformative power of the internet.

Convened under the auspices of the Internet Exchange Point of Nigeria and the Nigerian Network Operators Group, the annual ngPIF brought together a cadre of decision-makers from infrastructure providers, content providers, service providers, and policy-makers. 

The two-day forum seeks to catalyze a paradigm shift, fostering a deeper understanding of the complex economics of network interconnection and peering. It aims to bridge the gaps in knowledge, reducing the prevalent information asymmetry and opening avenues for collaborative growth. 

As delegates delved into discussions and presentations, Dr Ayotunde Coker, CEO of Open Access Data Centres (OADC), delivered an insightful keynote address that resonated profoundly with the forum’s objectives.

Dr Coker’s insights highlighted Nigeria’s key role in the global data center arena, shedding light on the nation’s rapid ascent in the digital revolution. His speech laid the foundation for a deeper exploration into Nigeria’s emergence as a data hub, providing a clear narrative for the nation’s digital journey.

“Ladies and gentlemen, it’s great to be here, talking about the next big center, Africa scale, where, and how,” he said.

He delineated how Nigeria, bolstered by strategic investments and cutting-edge technology, is well-positioned to become a key player in the digital revolution sweeping across Africa.

Established in 2018, OADC, a subsidiary of the WIOCC Group, embarked on a journey to revolutionize Africa’s digital infrastructure. With a notable investment of $500 million spanning five years (2021-2026), OADC is spearheading the establishment of Tier III certified inter-linked Carrier Neutral and Open Access core data centres and edge facilities. 

These state-of-the-art facilities, African-owned and operated, are designed to meet the continent’s diverse and burgeoning digital needs.

 “Nigeria will become the next significant hub of data centre capacity, seeing significant expandable capacity reaching the toolbar, making Lagos a key scale winner.

Africa’s digital future is being shaped right here, in the heart of Nigeria, as we witness the shift of workloads from Europe to Africa, driven by the rise of AI and the need for robust data centre solutions.”

OADC’s expertise is bolstered by its affiliation with the WIOCC Group, a behemoth in the digital connectivity sphere. With a 75,000km terrestrial fibre network and a 200,000km subsea fibre network, WIOCC Group ensures seamless end-to-end connectivity across over 1,000 locations in 30 African countries.

Strategic investments in subsea cables like Equiano and 2Africa further solidify Africa’s connectivity web, enhancing data transmission within and beyond the continent’s borders.

Nigeria’s Strategic Significance

Nigeria’s unique geographic location, coupled with its robust subsea cable connectivity, positions it as a prime hub for data centers.

With 155 million internet users, including 110 million with broadband access, Nigeria ranks sixth globally in internet connectivity.

Lagos, the country’s economic powerhouse with 22 million residents and 70-80% broadband penetration, emerges as a resilient epicenter for data center investments, making it a magnet for international businesses.

The European Shift: Workload Substitution and Nigeria’s Appeal

Europe’s escalating demand for data center space, driven by the rise of Artificial Intelligence (AI) workloads, has necessitated the exploration of new frontiers. Facing constraints such as power limitations and planning restrictions, European companies are increasingly turning to Africa, particularly Nigeria, for expansion. The concept of “workload substitution” has catalyzed the establishment of cutting-edge hyperscale data centers, transforming Nigeria into an attractive destination for global enterprises.

Dr Ayotunde Coker’s keynote address at the Nigerian Peering and Interconnection Forum (ngPIF) reiterated the country’s digital journey. With stakeholders at the fore, Nigeria is well-positioned in Africa’s digital transformation. As the continent’s data landscape evolves and workloads migrate from Europe to Africa, Nigeria emerges as a hub of innovation, connectivity, and economic growth, propelling Africa into a new era of digital prowess.

“In conclusion, South Africa will remain the hub, Lagos is more likely to take the capacity substitution from Europe to enable AI to grow, Kenya has very green power and that will emerge. New high-quality hyperscale specified facilities will enable shifting workloads to the continents, new scale hubs will emerge, shifting from South Africa to other hubs; Kenya, Lagos, Morocco, while Lagod locale will be a key scale winner with availability of sub-sea, lower latency, local scale high-quality scale capability.”