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By Chinenye Anuforo
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Nigeria’s ambition to become Africa’s digital hub may be under threat as policy bottlenecks, regulatory uncertainties and infrastructure challenges continue to push potential data centre investors toward rival markets such as Ghana and Kenya.
Industry stakeholders raised the concern during an interactive session at a media capacity-building programme attended by technology experts, telecom executives and journalists in Lagos.
Speaking at the session, Chief Executive Officer of the Internet Exchange Point of Nigeria (IXPN), Muhammed Rudman, warned that although Nigeria remains one of Africa’s largest digital markets, investors are increasingly weighing the risks of operating in the country against more predictable policy environments elsewhere on the continent.
According to him, investors evaluating digital infrastructure projects often compare Nigeria with other emerging technology hubs such as Ghana, Kenya and Rwanda before committing capital.
He noted that Nigeria still holds strong advantages in terms of market size and data consumption, but policy inconsistencies and operational bottlenecks could undermine its competitiveness.
“Many investors ask why Nigeria instead of Ghana or another African market. The truth is that Nigeria has a much larger population and stronger demand for data services. However, the narrative around Nigeria must improve and the policy environment must support investment,” he said.
Rudman explained that several regulatory and operational challenges continue to discourage digital infrastructure investments in the country.
He cited issues such as bureaucratic delays in clearing telecommunications equipment, multiple taxation from different government agencies, and inconsistent policies affecting the technology sector.
According to him, such challenges often increase project costs and create uncertainty for investors planning long-term digital infrastructure projects.
Data centres, which serve as the backbone of cloud computing, digital services and internet connectivity, require significant capital investments and stable operating environments to succeed.
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Industry analysts said the country’s rapidly growing digital economy makes it an attractive destination for data centre development, but investors also consider regulatory stability, energy reliability and infrastructure costs before committing funds.
Head of Converged Digital Infrastructure for Africa at Open Access Data Centres, Obinna Adumike, emphasised the need for stronger collaboration among technology companies and policymakers to support the growth of digital infrastructure.
He noted that businesses in the sector must look beyond competition and focus on building sustainable ecosystems that encourage long-term investment.
Adumike also stressed the importance of improving awareness about Nigeria’s digital infrastructure sector in order to attract global investors.
“We can build world-class digital infrastructure, but if the global technology community does not see the opportunities here, investments may flow to other markets,” he said.
He added that increased collaboration, infrastructure sharing and supportive government policies could significantly improve Nigeria’s competitiveness in the global digital economy.
Experts argued data centres are becoming increasingly important as demand for cloud services, artificial intelligence, streaming platforms and digital financial services continues to grow across Africa.
Nigeria, which has one of the largest internet user bases on the continent, is expected to experience rapid growth in data consumption over the coming years.
However, analysts warned that without reforms to address regulatory barriers and infrastructure gaps, Nigeria could miss out on billions of dollars in digital infrastructure investments.
The experts called on government authorities to prioritise policies that support technology infrastructure development, including clearer regulatory frameworks, improved ease of doing business and incentives for digital infrastructure projects.
They noted that strengthening Nigeria’s digital ecosystem would not only attract data centre investments but also support the broader growth of the country’s digital economy.
