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. 

The session featured insights from Funke Opeke, the Managing Director of MainOne; Johnson Agogbua, CEO of Kasi Cloud Datacenters; Josephine Sarouk, MD of Bayobab Nigeria; and Darren Bedford, Group Chief Development Officer, WIOCC, represented by Nikki Popoola, Sales Director at WIOCC.

Dewole Ajao, Global Network Acquisition expert from Google, skillfully moderated the conversation, extracting valuable insights from each ngPIF panelists.

Johnson Agogbua, CEO of Kasi Cloud Datacenters, opened the dialogue, shedding light on the intricate landscape of digital infrastructure in Nigeria. He eloquently emphasized, “Nigeria is a difficult but immensely rewarding market… punching above its weight, with almost 30% of internet traffic in Africa.” Agogbua pinpointed the challenges, including power supply and economic policies, stressing the need for streamlined processes. 

He noted, “Digital infrastructure costs money,” highlighting the importance of stable economic policies for investors.

Funke Opeke, the Managing Director of MainOne, provided valuable insights into the regulatory hurdles faced in Nigeria compared to smaller markets. 

She remarked, “Dealing with government for permits, licenses, and regulations has its challenges.” 

Opeke passionately advocated for a unified digital network, envisioning, “a robust shared digital network fibre that cuts across every local government, every community, across the country.” 

Her vision highlighted open access, shared costs, and shared operations, emphasizing inclusivity and comprehensive connectivity.

Josephine Sarouk, the MD of Bayobab Nigeria, highlighted the keyrole of partnerships between the private sector and the government. She stated, “We can’t do it without partnerships,” emphasizing the need for collaboration. Sarouk stressed uniformity in rights of way, advocating for consistent policies across states. Her fervent plea was to transform digital infrastructure into government assets, ensuring protection against vandalism and bolstering the security of vital fibre routes.

Nikki Popoola, the Sales Director at WIOCC, echoed the sentiments of partnership and accessibility. She emphasized the importance of affordable internet services, asserting, “It needs to be cost-effective… if it’s not affordable, what’s the point?” Popoola shared her dream, aiming to replicate South Africa’s success in Nigeria. Her vision encompassed collaboration and standardized infrastructure development, creating an inclusive digital landscape.

The panel discussion illuminated the challenges and aspirations within Nigeria’s digital infrastructure sphere. Each ngPIF panelists emphasized the urgency and determination in the sector. 

Their shared vision revolved around streamlined regulations, standardized processes, and collaborative efforts between public and private sectors. Their collective mission? 

To transform Nigeria into a digitally connected powerhouse, where opportunities are boundless and inclusivity is paramount.

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.”