Nigerian entrepreneur Fara Ashiru launched her fintech platform, Okra, in 2020 using AWS. Due to the challenges of paying for services in US dollars as the naira lost value, Okra’s cloud expenses became unsustainable. In response, the company moved its cloud infrastructure to local data centres in Nigeria and South Africa in 2024, leading to the creation of Nebula, a separate company offering cloud hosting with payments in naira.
Nebula is part of a growing trend of Nigerian cloud providers offering alternatives to global giants like AWS, Microsoft Azure, and Google Cloud. Local cloud services not only help cut costs but also address concerns over data sovereignty and reduce latency for Nigerian businesses. As international providers like AWS begin accepting payments in naira to improve customer experience, local providers are gaining traction in the market.
Despite the dominance of global cloud providers in Africa, the shift towards data localisation is becoming a priority. Nigerian startups are increasingly turning to local cloud providers like Nobus, Galaxy, Suburban, and Layer3 to store data within the country. This emphasis on data sovereignty, combined with performance benefits and the need for payment in local currency, is driving the growth of local cloud services in Nigeria.
While challenges such as infrastructure gaps and automation issues persist for local providers, the demand for colocation services is on the rise. Nigerian startups are finding ways to overcome these challenges by renting space in existing data centres owned by telecom firms, banks, and IT companies. The growing digital technology landscape and the need for local currency payments are driving the expansion of local cloud services in Nigeria.
In conclusion, Nigerian cloud providers are carving out a niche in the market by prioritising data sovereignty, reducing latency, and offering services in local currency. As the digital technology landscape in Nigeria continues to evolve, local cloud providers are poised to play a crucial role in meeting the needs of businesses within the country.
