NCC Calls For More Investment In Data Centre Operations

The Nigerian Communication Commission (NCC) has called for more investment in data centre operations and the need for Nigeria to take advantage of the opportunities to further deepen data governance in the country.

The Executive Vice Chairman of NCC, Prof. Umaru Danbatta, said this during the Telecoms Sector Sustainability Forum (TSSF) 4.0 organised by Business Remarks in Lagos, South-West, Nigeria.

Danbatta who was represented by Head, Tariff Administration NCC, Sunday Atu said there is need for support to ensure data centres not only operate to guarantee national digital sovereignty, but also prioritise contents reflecting the country’s cultural norms, contexts and ideological values.

According to the commission’s Boss, by providing a reliable and secure environment for the services they offer within a well-nurtured policy and regulatory framework, Nigeria represents an attractive destination for more investment in data centre services and operations.

Danbatta, added that the implication of such investments on jobs in the construction, operation, and maintenance of these data centres can only be imagined.

He noted that Africa has recently assumed a new frontier and compelling destination for global Big Tech players.

These, he said, “include Google’s Equiano subsea fibre cable spanning 15,000 km from Portugal to South Africa with strategic landing points in Nigeria and Namibia and expected to increase connectivity more than five-fold within Nigeria while creating an expected 1.6m jobs and Meta’s 2Africa subsea cable scheduled for launch next year and which connects 16 African countries.”

Prof. Danbatta who spoke on the theme “Mainstreaming Data Centres in the Nigerian Digital Economy” said the Federal Government of Nigeria has taken laudable steps to encourage and support data centres services in the country in its drive to ensure data sovereignty.

“This is encapsulated in the National Digital Economy Policy Strategy (NDEPS) Pillar number 3 on Solid Infrastructure which states that; The Government will Promote the Development and Deployment of robust and scalable data center infrastructure. It therefore goes to show that these centres and their potential to attract foreign investment remain massive”

He said data was regarded as the new oil globally with increasing intensity in the context of the emerging digital economy.

Danbatta explained that data had become a subject of special consideration by regimes, requiring appropriate structures and frameworks to truly tap and optimise the opportunities provided by this new order.

He noted that data centre services, no doubt, held the keys to the ultimate crystallisation of the new line of thinking within the ICT sector and by extension to the greater national economy of nations in so many ways.

The Chief Executive Officer of Medallion Data Centre Ltd., In his remark, Ikechukwu Nnamani, said “If we look at other parametres Nigeria should be at the fore front of data centre industry in Africa.

“Unfortunately we are lagging behind and surprisingly African countries like South Africa and Egypt are way ahead of Nigeria “He stated.

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He explained that from the Gross Domestic Product (GDP) point, broadband connectivity, and in terms of mobile subscription, Nigeria had significantly lower figures than other African countries.

Nnamani stressed the need for Nigeria to be put in its rightful position as the giant of Africa, not just in terms of population, but also in the area of quality of life of citizens, GDP and the digital benefits.

The Converner of the Forum, Mrs. Bukola Olanrewaju stressed the pivotal role data centres played in the digital era, saying beyond data storage and accessibility, they underpinned the digital world, fuelling economic growth, environmental sustainability and data security.

Olanrewaju said currently, there were only 86 colocation data centres in 15 African countries, with the majority concentrated in the big four African countries, which included South -Africa , Egypt, Nigeria and Kenya.

Quoting an Allied Market Research, She said the global data centre market was valued at 187.35 billion dollars in 2020 and was anticipated to reach 517.17 billion by 2030.

According to Olanrewaju, data centres, alongside fibre optic broadband expansion and telecom towers, are poised to become the new backbone of Africa’s economic growth.


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