The National Information Technology Development Agency (NITDA) has urged global technology companies and Nigerian infrastructure developers to increase investment in the country’s digital infrastructure as demand for cloud computing and technology services continues to grow.

NITDA Director General, Malam Kashifu Inuwa, said Nigeria has the capacity to evolve from a major consumer of offshore digital services into a leading cloud computing hub in West Africa. He placed the potential value of the market at more than $1 billion.

Inuwa made the remarks while presenting “Nigeria’s Digital Infrastructure Opportunity” at ITW Data Cloud Africa 2026 in Nairobi, Kenya.

He said Nigeria’s expanding digital requirements are creating substantial investment opportunities in cloud infrastructure, data centres and other technology services.

According to the NITDA director general, local data capacity is currently operating at nearly 90 percent utilisation. As computing requirements increase, the country has consequently remained significantly reliant on offshore infrastructure.

He noted that this dependence has created an economic gap because considerable digital value generated within Nigeria is being processed through servers located outside the country.

The Federal Government is seeking to close that gap by using public-sector demand to encourage private-sector investment through a newly institutionalised Cloud-First Policy.

Inuwa explained that the policy is expected to bring together previously fragmented government technology spending and establish the government as a major anchor customer for cloud and shared digital infrastructure providers.

Between 2023 and mid-2026, 326 federal ministries, departments and agencies reportedly spent N3.89 trillion, equivalent to about $2.9 billion, on technology investments.

NITDA estimates that government demand alone generates nearly $1 billion annually. The government plans to direct that demand towards cloud infrastructure and shared digital architecture.

The approach could provide technology companies and infrastructure developers with a broader and more predictable market for cloud services, data hosting and related digital infrastructure, while helping Nigeria reduce its dependence on offshore providers.

Inuwa also disclosed that NITDA is working to make the regulatory environment more favourable to investors by moving away from fragmented oversight towards a more unified system.

A single-interface portal is being developed to simplify compliance requirements across multiple government agencies. Shared regulatory standards are also expected to make it easier for businesses, including financial institutions, to move core data to locally hosted cloud systems.

He said the framework is designed to strengthen the market rather than introduce rigid localisation requirements, with a focus on healthy competition and international interoperability.

Nigeria’s growing digital economy is further adding to the investment opportunity. Broadband penetration has increased to more than 56 percent, while the country has 192 million mobile subscribers and 157 million internet users.

For Nigerian technology startups, cloud service providers and digital infrastructure companies, expanding domestic computing capacity could facilitate the growth of digital services and reduce dependence on foreign infrastructure.

It could also create opportunities for these businesses to provide services to customers in Nigeria as well as markets across the region.

Source: msmeafricaonline