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Nigeria Loses $850m Annually as Adoption of Local Digital Infrastructure Remains Low

Nigeria is forfeiting an estimated $850 million every year due to the slow adoption of its local digital infrastructure, a development stakeholders say is undermining the country’s efforts to achieve digital and economic sovereignty.

The concern took centre stage at the third edition of the Nigerian Internet Registration Association (NiRA) Tech Convergence Conference held recently in Abuja, where policymakers, regulators and technology stakeholders gathered to discuss the future of Nigeria’s digital ecosystem.

At the event, NiRA President, Adesola Akinsanya, emphasized that digital independence is not about disconnecting from the rest of the world but about ensuring that Nigeria has greater control over its digital resources, data and online identity.

According to her, a truly independent digital ecosystem is one that is secure, resilient and competitive enough to safeguard national interests while supporting economic growth.

“Digital independence does not mean isolation from the global internet. It means a secure, resilient, and competitive digital ecosystem that gives Nigeria greater control over its data, infrastructure, digital identity system, and online presence,” Akinsanya said.

Industry experts at the conference expressed concerns over Nigeria’s continued reliance on foreign domain names, offshore hosting services and non-local digital platforms. They argued that such dependence not only sends revenue outside the country but also limits Nigeria’s authority over the data generated by its citizens and businesses.

Chairman of the Senate Committee on ICT and Cybersecurity, Senator Shuaib Salisu, warned that digital assets should now be regarded as critical national security resources. He noted that while Nigeria has institutions dedicated to protecting its physical borders, its digital assets remain exposed due to dependence on infrastructure controlled outside the country.

“We may have the Navy to protect our marine borders. Our Air Force may be free in the air to protect our airspace. But your data is somewhere in China. We are vulnerable as a people,” Salisu stated.

The lawmaker described the .ng domain as Nigeria’s official digital identity and called for stronger national ownership of the country’s online presence.

“Why would a nation physically residing in Nigeria give its contact address as France? This is our address, and no one should be allowed to take it from us,” he added.

NiRA explained that the estimated annual loss is linked to the limited use of local digital services, including domain registration, data hosting and other internet-based infrastructure. As businesses and organisations continue to rely on foreign alternatives, the economic value generated from these services flows to other countries.

The association believes that wider adoption of the .ng domain would help retain revenue within Nigeria, improve data security, reduce latency and stimulate investment in local cloud services and digital infrastructure.

To accelerate local digital adoption, stakeholders advocated policy measures that would encourage greater use of the national domain across both public and private sectors.

Among the recommendations put forward, Senator Salisu proposed the introduction of .ng email addresses for candidates applying through the Joint Admissions and Matriculation Board (JAMB). He also suggested making .ng domain ownership a requirement for company registration and access to government-backed support programmes.

The conference also featured discussions around the proposed .ng Ambassador Programme, an initiative designed to increase awareness and encourage adoption of Nigeria’s national domain across government institutions, businesses and academic communities.

According to NiRA, the programme will create a network of advocates who will champion the use of the .ng domain and promote wider acceptance of digital identity solutions as part of the country’s broader digital economy agenda.

Participants concluded that Nigeria must move more aggressively to strengthen its digital identity infrastructure, improve governance of its online assets and expand the adoption of local digital platforms if it hopes to unlock long-term economic benefits and enhance its digital sovereignty.

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