Nigeria’s plan to attract $750 million in private investment into cloud infrastructure within 24 months will depend on whether telecom operators, banks, fintech companies and international technology investors are willing to commit capital, technology experts have said.
The experts, however, warned that unreliable electricity, patchy connectivity, costly financing, unclear regulation and a shortage of specialised skills could put the target at risk, even as demand for cloud services grows.
What the National Digital Cloud Policy aims to do
The Federal Ministry of Communications, Innovation and Digital Economy’s National Digital Cloud Policy targets $250 million in private investment within 12 months and $750 million within 24 months. The money is meant to expand data centre capacity, cloud infrastructure and digital services.
The policy seeks to make Nigeria a regional cloud computing hub through local and foreign investment, wider government use of cloud services, technology transfer and stronger digital sovereignty. It also sets out a Cloud First approach for government institutions. The National Information Technology Development Agency (NITDA) provides regulatory oversight, while Galaxy Backbone Limited coordinates delivery and shared infrastructure. The policy is expected to work alongside the government’s planned 90,000-kilometre Project BRIDGE fibre expansion.
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Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, has said Nigeria must move from consuming global cloud services to becoming a competitive destination for infrastructure investment, skills and digital service exports.
“Stability, not just announcements”
Science, Technology and Innovation (STI) policy adviser Jide Awe described the plan as more than an infrastructure programme. In his view, it is a chance to strengthen the digital economy, build local capacity and shape Nigeria’s place in the global digital landscape.
He called the targets ambitious but achievable given the size of the market, but said investors need a stable environment. “Investors will need stability in the environment, not just the policy announcements,” he said, listing predictable regulation, reliable power and connectivity, transparent procurement and confidence in returns.
Awe named electricity, connectivity, skills, financing and regulatory certainty as the main gaps. He said cloud development involves more than building data centres, since secure networks, trained professionals and steady demand matter as well.
He also said digital sovereignty should not be read as isolating Nigeria from global providers. It means being able to make informed choices about data, infrastructure and technology, he said, while using global cloud capabilities and building local expertise and indigenous providers.
Awe urged a move from policy statements to delivery, with clear projects, accountable institutions, measurable milestones and regular public reporting. He said success should be judged by working infrastructure, better public services, businesses supported and jobs created, not by investment figures alone. He added that moving public institutions to the cloud should be treated as institutional change and not only a procurement or relocation exercise.
Telcos, banks and fintechs seen as key players
Technology policy expert Teju Abolade said the target will depend on making local cloud infrastructure commercially attractive. She said telecom companies are well placed to lead because they already own fibre networks, international bandwidth and connectivity facilities. They could invest in data centres, edge computing and enterprise cloud services, alone or with international providers.
She noted that the economics of running data centres in Nigeria remain tough, because of high costs for electricity, cooling and security. Without reliable power, attractive financing and predictable regulation, she warned, private investors may hold back. She described the Project BRIDGE fibre rollout as an important part of the plan, since data centres need dependable connectivity to serve users nationwide.
Abolade said banks and fintechs should be seen as customers as well as possible financiers, because they rely on cloud services for transactions, customer data, artificial intelligence, cybersecurity and fraud detection. Their demand for secure, locally hosted infrastructure, she said, could provide a commercial base for long-term investment.
Financial institutions, she added, would want clear returns, strong data protection and operational resilience before investing. They could take part through long-term financing, equity stakes, strategic partnerships or guaranteed demand for locally hosted services.
Government demand could anchor investment
Abolade urged the government to pool its demand for cloud services, arguing that firm procurement commitments could give private investors the predictable market they need. She cited NITDA figures showing that 326 federal ministries, departments and agencies spent N3.89 trillion on technology between 2023 and mid-2026, as a sign of the scale of public-sector demand.
She also warned that local cloud providers could be crowded out by larger international firms, and called for deliberate support through technology transfer, skills development and access to affordable capital. In her view, the $750 million ambition should ultimately be judged by the infrastructure, jobs, technology capacity and economic value created in Nigeria.
The experts agreed that meeting the target will take more than incentives. Reliable infrastructure, commercially viable projects and sustained private-sector involvement will decide whether Nigeria becomes a competitive cloud services destination in Africa.
