Telecom
Expert Tasks Govt to Create Incentives to Promote Data Centres, Digital Infrastructure Deployment in Nigeria
To prioritize the sustainability of the data centres industry in Nigeria, the federal government has been tasked to create incentives to promote data centres and expand the deployment of digital infrastructure in Nigeria.
The Chief Operating Officer, WTES Projects, Chidi Ajuzie made this call at the fourth edition of the Telecom Sector Sustainability Forum (TSSF) organized by Business Remarks themed “Mainstreaming Data Centres in the Nigerian Digital Economy”.
Speaking on the theme, Ajuzie explained that the government’s proactive and timely policies are the much-needed catalysts for the data centre business and to address the increasing demands of the digital economy.
He noted that data centres and Hyperscalers have become the enablers of the digital ecosystem by democratizing access to the cloud, storage, computing, applications, solutions, and platforms.
During his presentation, Ajuzie recommended that the government need to create incentives for the deployment of digital infrastructure. The government needs to harmonize the collaboration framework and review and update policy regulations, guidelines, and mandates to ensure synergy and alignment.
According to him, there is a need to balance the regulation, obligation, and levies imposed on operators to encourage infrastructure deployment to serve the unserved and underserved and bridge the rural-urban gaps.
Furthermore, he stressed that to ensure data centres’s growth in our region, the government needs to ensure regulations and legislation are updated and fit for purpose.
Ajuzie stated that there are currently over 21 Data Centres in Nigeria with Lagos being home to the top tier data centers Open Access Data Centre (OADC) by WIOCC Group Company; Medallion (Digital Reality); Rack Centre; MDXi (MainOne, an Equinix Company), 21st Century; ADC, MTN, CEWA, Galaxy BackBone and 9mobile.
He, however, noted that Asburn, Virginia USA, is the epicentre of the world’s data centre alley anchoring a collection of nearly 300 data centres, handling more than one-third of the world’s online traffic.
While speaking on the economic impact of Data Centres, he quoted a report by the Northern Virginia Technology Council that estimates that the area’s data centers were responsible for nearly $174 million in state revenue and $1 billion in local tax revenue in 2021. Loudoun County alone takes in close to $700 million annually in tax revenue from data centres, enough to cover all the country’s recurring expenditures. The region data centres also employ 5,500 people, excluding construction workers.
To ensure inclusivity and grow the need for data centers, government needs to expand digital infrastructure initiatives by encouraging policies and guidelines that will drive its continued expansion and its integration to bridge the digital divide, he stated.
The incentives, according to Ajuzie, should include improving power supply to support digital infrastructure operations. He posited that the need to develop national plans and targets for the adoption of digital services and track milestones, leveraging the existing NDEPS framework, cannot be overemphasized.
Ajuzie said data collected from operators’ networks should be effectively utilized for data-driven decision-making, ensuring targeted service improvements and policy formulation, thereby generating more Big Data and spurring data centre growth.
Other recommendations are not limited to encouraging citizens to engage with digital services. This is because online and digital engagement grows the data centre ecosystem. Digital literacy & technology skills to support adoption should be encouraged.
Ajuzie emphasized that wherever they are located, the need for data centers is only going to increase in the coming years, spearheaded by the use of AI which depends on massive amounts of data and computing power and lots of electrical energy as well as evolution.
Telecommunication companies have threatened to withdraw their Unstructured Supplementary Services Data (USSD), services from banks over what they called misinformation.
MTN Nigeria, Airtel, Globacom and 9Mobile- the telcos disclosed that the banks’ notice to their customers on the new billing system and airtime deductions for USSD services was misleading.
Also, Association of Licensed Telecom Operators of Nigeria (ALTON) also denied that the directive was from the Nigerian Communications Commission (NCC).
USSD is done via shortcodes on mobile phones and allows bank customers to make transactions in places with limited or no internet service.
Recall that banks earlier this week claimed that NCC has directed them to begin charging them from their airtime rather than from customers’ accounts.
The notice from the banks read in part: “In line with the directive of the Nigerian Communications Commission (NCC), please be informed that effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account.
“Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing (EUB) model.
“Under this new billing structure, each USSD session will attract a charge of ?6.98 per 120 seconds, which will be billed by your mobile network operator.
“You will receive a consent prompt at the start of each session, and airtime will only be deducted upon your confirmation and availability of the bank to fulfil this service.
“If you do not wish to continue using USSD banking under this new model, you may choose to discontinue use of the USSD channel.”
Reacting, ALTON, umbrella body of telecom operators in Nigeria, said the banks’ notice is a gross misinformation deliberately hatched to suit their selfish interests.
Hence they threatened to withdraw network support to the banks’ USSD services.
Engr Gbenga Adebayo, chairman of ALTON told Vanguard: ” I don’t understand why the banks are twisting agreements and distorting information just to favour their selfish interests. In the first place, the information wasn’t a directive from the NCC but a joint regulatory agreement between the NCC and the Central Bank of Nigeria, CBN witnessed by the telcos and the banks. The agreement was that if the banks finally cleared all USSD debts owed to the telcos by June 2, 2025, they are free to migrate to the end-user billing method, so long as the model of migration is transparent and agreed upon by the telcos.
“The reason for that clause was because the telcos insisted that the process of migration is such that will not allow a customer to be billed twice; in other words, that a subscriber would not have his airtime deducted and also have his or her money deducted for same services from his or her bank account.
” As we speak, some of the banks have cleared their debts, but the majority are yet to do so. So, even if all the modalities of migrating to end-user billing have been perfectly carried out, the implementation cannot even begin because the banks are yet to clear the USSD debt owed to the telcos.
“Our position now is that if that is the way the banks want to treat the agreement, we may withdraw support for their USSD services. It is not a must-have. They can do without it. But, they should clear the debts as agreed,” he added.
MTN Nigeria has announced plans to embark on a massive capital expenditure (CAPEX) drive in 2025, committing nearly N900 billion to significantly enhance network service quality across Nigeria.
Dr. Karl Toriola, CEO, MTN Nigeria,
The substantial investment, more than double the combined CAPEX of approximately N440 billion spent in 2023 and 2024, underscored MTN’s aggressive strategy to address persistent service quality issues and meet growing customer and regulatory expectations.
Dr. Karl Toriola, CEO, MTN Nigeria, detailed this unprecedented financial commitment during a recent interview on Arise TV, emphasizing that improving service quality is the company’s paramount message for the year.
He highlighted a clear understanding and expectation from both the Nigerian Communications Commission (NCC) and security agencies for improved network quality.
A primary focus of this increased CAPEX will be on putting additional capacity in a city like Lagos, particularly in Abuja, where you have a lot of buildings coming up, you need additional sites because there are coverage issues.
Beyond these critical urban centers, the investment aims to bolster network resilience and ensure power stability for its infrastructure nationwide.
This includes proactively addressing site outages by ensuring timely payment for operational necessities such as diesel for generators, a persistent challenge in the Nigerian operating environment.
Toriola outlined a comprehensive upgrade process, which involves placing orders formally, opening letters of credit, and then the equipment gets shipped in and installed.
He added that MTN will be acquiring new sites and laying fiber to the base station to create better stability” where necessary.
While the immediate CAPEX is geared towards improving existing service quality and capacity, this investment aligns with MTN’s broader goals of enhancing financial inclusion in underserved rural areas, suggesting a long-term vision for network expansion and service improvement that extends beyond metropolitan areas.
Subscribers can anticipate tangible improvements in service quality, with a significant improvement in quality of service expected by the end of the second quarter or early in the third quarter of 2025, according to Toriola.
“This year is all going to be about capital expenditure on an aggressive basis to fix quality of service issues (and) meet both the regulators’ and the public’s expectations,” he affirmed, reiterating MTN’s steadfast focus on customer experience through substantial capital investment.
Telecom regulators and industry leaders from across the Middle East and Africa gathered in Cairo last week to chart a data-driven future for the region.
In a region where digital transformation is accelerating at unprecedented speed, connectivity intelligence firm, Ookla and Egypt’s National Telecom Regulatory Authority (NTRA) joined forces to organise the Telecommunications Regulatory Summit
Themed ‘Harnessing Data and Technology for Superior QoS’, the summit focused on how data, particularly crowdsourced insights, can transform regulatory strategies across the region.
The summit attracted stakeholders from over 30 countries, including delegates from the International Telecommunication Union (ITU) and World Broadband Association (WBBA), who engaged in high-level discussions on optimising network performance and accelerating digital inclusion.
Karim Yaici, lead industry analyst for the Middle East and Africa at Ookla, said the event set the tone for the growing value of data-driven decision-making.
“Access to and the use of crowdsourced data contribute to making more informed decisions, fostering transparency and ensuring that citizens in the MEA region benefit from high-quality, accessible and affordable connectivity,” he said.
The experts underlined that crowdsourced data is becoming a critical complement to traditional regulatory methods.
They agreed that it helps identify service gaps, prioritise infrastructure investments, and drive innovation.
With broadband speeds now closely tied to GDP growth and productivity, accurate performance data is seen as key to socio-economic advancement.
Dr. Hossam Abdel-Mawla, vice-president of technical affairs and quality of service at NTRA, stressed that the summit was pivotal in fostering regional collaboration.
“By actively sharing best practices and exploring innovative data-driven strategies, we are shaping a future where telecom regulations ensure digital inclusion and economic growth across the region,” he said.
In a key session, Ahmed Nabawy, director of client services at Ookla, presented findings on 5G performance in Egypt and Tunisia.
He demonstrated how Ookla’s unified data platform, powered by AI, enables operators to analyse 5G-capable device density and prioritise high-impact rollout areas.
The summit also explored the shift from conventional network quality metrics to more user-centric Quality of Experience models. These advanced analytics tools promise to enhance transparency, improve accountability, and ultimately deliver better connectivity experiences for all.
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