Nigeria’s ICT Sector Drives Growth With $460m Investments

Nigeria’s ICT sector has received a significant boost, driving growth and solidifying the country’s position as Africa’s digital leader. According to Wole Abu, Managing Director of Equinix Nigeria (MainOne), the sector has seen a recent $320 million acquisition and $140 million expansion of digital infrastructure.

Abu made this known at the inauguration of the executive committee of the Nigerian Institute of Electrical Electronic Engineers (NIEEE), Victoria Island Chapter in Lagos. The programme, themed “Evolution of Digital Economy in Nigeria: The Role of Electrical and Electronics Engineers,” also included the unveiling of the Techy Voice of Experts.

The investment includes a 7,000km submarine cable network and a 1,200km fibre network across Nigeria. Abu revealed that eight submarine cables have landed in Lagos, bringing over 300,000 terabits of data and supporting global tech giants like Amazon and Google. Equinix data centres handle 95% of internet traffic, providing secure environments for digital payments.

With over 65 points of presence across West Africa, Equinix enables localised traffic exchange and improved internet experience. Abu stated that $460 million has been invested so far, with more expected to support the digital entrepreneurship ecosystem. Collaborations with innovation hubs, business schools, and engineering testers are underway to launch digital businesses and transform the economy.

The ICT sector’s contribution to Nigeria’s GDP has also been significant, with a 19.78% contribution in Q2 2024, up from 17.89% in Q1 2024, according to Augustine Nwaulune, CEO of Augustine K. Nwaulune and Co Consultants Ltd. However, experts note that challenges such as inadequate electricity supply and high energy costs threaten the sector’s growth.

Wilson Alli, Deputy President of the Chartered Institute of Power Engineers of Nigeria (CIPEN), emphasized the need for reliable electricity supply to support the digital economy. Despite these challenges, Nigeria aims to be the leading carrier-neutral digital provider in Africa, leveraging digital innovation to drive economic growth.