By Martin Ekpeke
Following the arguments that the storage and processing of data within the Nigerian borders will propel Nigeria’s digital economy to new heights and ultimately fuel innovation and economic growth in the country, a tech enthusiast has decided to highlight some of the challenges why data is still not 100 percent hosted in Nigeria.
Chopinx Omoroh, an industry watcher and analyst believes that despite the many benefits, implementing data domestication in Nigeria faces several challenges.
These challenges, according to him include a lack of infrastructure. He noted that building and maintaining a robust data center infrastructure requires significant investment. Thus, Nigeria needs to invest in reliable power grids, high-speed internet connectivity, and secure data storage facilities to accommodate the growing volume of data.
He also mentioned data privacy concerns, advising that striking a balance between data localization and data privacy is crucial. “Stringent regulations to protect individual privacy must be implemented alongside data domestication policies to ensure public trust and avoid hindering innovation,” he emphasized.
Other challenges are technical expertise, where he argued that data management, analysis, and security require specialized skills. “Nigeria needs to bridge the digital skills gap by investing in education and training programs to create a pool of data scientists, cybersecurity experts, and data center administrators.”
He also believes compliance costs are another challenge as businesses may face additional costs associated with data residency regulations. He advised that simplifying compliance procedures and creating incentives for data localization can mitigate this challenge.
Over and above all, Chopinx noted that the digital world is inherently interconnected. Thus, data localization policies should not impede collaboration and trade with international partners. Striking a balance between domestication and global data flows is essential.
Data are essentially hosted in Data Centers. A search on Google indicates that Nigeria has eleven data centers. One is in Abuja, while the remaining ten are located in Lagos.
Also, according to report, the Nigeria Data Center Market size is estimated at 116.7 MW in 2024 and is expected to reach 226.7 MW by 2029, growing at a CAGR of 14.20%. Further, the market is expected to generate colocation revenue of USD 251.1 Million in 2024 and is projected to reach USD 578.1 Million by 2029, growing at a CAGR of 18.15% during the forecast period (2024-2029).