Mr. Ikechukwu Nnamani, Chief Executive Officer of Digital Realty Nigeria, has said major global cloud providers are bypassing Nigeria due to high operating costs, infrastructure challenges, and outdated regulatory frameworks.
Nnamani made the remark during the National Telecommunications Policy 2000 Review Workshop organised by the Nigerian Communications Commission on Thursday in Lagos.
He noted that existing telecommunications regulations were designed for voice and SMS operations and no longer adequately address emerging technologies shaping global digital communication and infrastructure.
According to him, internet-based platforms such as Facebook, WhatsApp, and X have significantly displaced traditional messaging systems previously dominated by conventional telecom operators.
“Today, SMS is mostly used for authentication and monetisation. Communication has shifted completely toward internet-based platforms that were not envisioned when the policy was developed,” he said.
Nnamani questioned how regulators plan to govern emerging sectors such as smart cities, artificial intelligence ecosystems, and hyperscale cloud platforms under frameworks developed more than two decades ago.
He observed that Nigeria currently lacks a full hyperscale cloud region despite having Africa’s largest population and one of the continent’s biggest telecommunications subscriber bases.
Hyperscale cloud platforms are large, globally distributed computing systems operated by major tech firms that provide on-demand digital infrastructure at massive scale. Examples include Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba Cloud.
Nnamani said many hyperscale investment discussions across Africa are now shifting to Kenya instead of Nigeria, as investors prefer markets with lower operating costs and better infrastructure support.
“We must ask ourselves why hyperscalers are choosing other markets over Nigeria and what policy reforms are necessary to attract those investments into the country,” he said.
He identified high electricity costs, multiple taxation, expensive right-of-way charges, and infrastructure vandalism as major factors discouraging digital infrastructure investments in Nigeria.
Nnamani disclosed that a major Bitcoin mining investor abandoned Nigeria for Ethiopia after finding electricity costs there significantly cheaper.
He added that poor access to affordable financing remains another major obstacle, as infrastructure projects cannot survive commercial lending rates approaching 30 per cent annually.
The Digital Realty CEO also warned that Nigeria risks widening digital inequality because critical digital infrastructure remains heavily concentrated in Lagos, while many other regions suffer from weak connectivity and low technology investments.
Nnamani expressed optimism that the ongoing review of the telecommunications policy would modernise regulations, improve the investment climate, and strengthen Nigeria’s position in Africa’s digital economy.
