Huawei Technologies, a Chinese information and communications technology (ICT) infrastructure provider, has unveiled plans to launch a significant new data centre in Nigeria, a move that is expected to bolster the country’s cloud infrastructure and support its growing digital economy.

Server racks in server room data center

This announcement was made by David Olaiya, head of Cloud Fintech Business Development for Huawei Nigeria, during Nigeria Fintech Week, in Lagos.

The new data centre is expected to strengthen Nigeria’s position as a hub for tech innovation in West Africa.

Scheduled to become fully operational by October 31, 2024, the facility, called ‘Cloud Site’ is designed to provide comprehensive data storage and computing services.

By keeping data within Nigeria’s borders, this initiative aims to align with the country’s data protection policies, which mandate that all user data be stored locally.

This is especially critical for sectors like finance and telecommunications, where data security is paramount.

Many Nigerian businesses, particularly those that have relied on international cloud services, often face compliance challenges when it comes to storing and processing sensitive user data.

These companies have had to send their data across borders, raising concerns about data security and regulatory adherence.

The launch of Huawei’s data centre aims to directly address these issues by allowing businesses to manage their data domestically, ensuring compliance with the Nigeria Data Protection Regulation (NDPR).

“This centre ensures data sovereignty, offering Nigerian businesses a competitive advantage by keeping sensitive information within the country,” Olaiya stated.

The launch of the data centre comes amid the growing influence of Huawei’s cloud services among Nigerian banks. Reports have emerged that major Nigerian banks including UBA Zenith Bank, Opay, First Bank and others are opting for Huawei’s cloud storage solutions, positioning it as a strong competitor to IBM, which has been a longtime leader in banking technology in Nigeria. The shift by these banks reflects the rising trust in Huawei’s cloud capabilities and its growing influence within the financial sector.

Olaiya also emphasized that the new centre will offer more than just local data storage. It is expected to significantly reduce latency, providing faster access to cloud services, which is crucial for real-time operations such as digital payments and mobile banking.

In addition to data compliance, he noted that the centre will be backed by local technical expertise, which will be key in providing timely support to Nigerian enterprises. Huawei plans to have a dedicated team on the ground, alongside its global 24/7 support infrastructure. This combination of local and global resources promises to deliver seamless service, enabling companies to troubleshoot issues more efficiently and reduce the risks associated with downtime or technical failures.

While this is a milestone for Huawei, Nigeria already hosts data centres from global tech giants such as Amazon Web Services (AWS) and Microsoft Azure.

However, Huawei’s entry into the local cloud landscape is poised to bring additional benefits.

The ‘Cloud Site’ will be part of Huawei’s extensive global network, which spans 93 availability zones in 33 regions around the world, including existing data centres in South Africa and Egypt.

The Nigerian data centre will be linked to Huawei’s other key locations, including facilities in Johannesburg, South Africa, and Dublin, Ireland.

This global integration is expected to not only serve as a critical resource for established businesses in Nigeria, but also to support Africa’s digital transformation in broader terms, creating new opportunities for startups, especially in sectors like fintech, e-commerce, and artificial intelligence (AI), where local data processing can drive innovation.

In a related initiative, Huawei Cloud announced in April 2024 its plan to support 100 Nigerian startups over the next two years.

This commitment includes providing these startups with cloud resources and technical assistance to help them scale their operations and bring new products to market.

Meanwhile, the Nigerian government has also demonstrated its commitment to data infrastructure, with plans to inaugurate a national data centre by May 2024.

This facility, which will have a storage capacity of 1.4 petabytes, is intended to securely store critical national data, including biometric information of Nigerian citizens.

Overall, Huawei’s entry into Nigeria’s data centre market is set to complement these efforts, further establishing the country as a regional leader in cloud computing and data services.

Nigerian Communications Commission (NCC) is preparing to issue a revised corporate governance code, updating the 2016 version with a key focus on the introduction of mandatory sustainability reporting for telecom operators, according to Dr. Aminu Maida, executive vice chairman of the commission.

Maida said that the initiative is aimed at aligning the sector with global environmental, social, and governance (ESG) standards, promoting greater transparency and supporting sustainable development within Nigeria’s telecommunications landscape.

He, disclosed this during his address at the 2024 Annual Corporate Governance Conference in Lagos, State, themed “Corporate Survival and Sustainability: The New Face of Governance.”

The sustainability reporting involves organisations disclosing information about their ESG performance.

This practice provides stakeholders—including investors, customers, and regulators—with insights into how telecom operators manage risks and opportunities related to sustainability. Key components include reporting on carbon emissions, resource usage, labour practices, community engagement, and data privacy.

Maida emphasized the importance of sustainability in corporate governance, highlighting that “such practices are no longer optional but essential for the long-term success of telecom companies.”

He presented findings from a comprehensive NCC analysis evaluating corporate governance among telecom operators. Key indicators examined included board composition, diversity, effectiveness, ethical conduct, compliance, risk management, and corporate social responsibility.

The analysis revealed a strong correlation between effective governance and regulatory compliance, with companies not excelling in governance facing poor financial performance.

Association of Telecommunications Companies of Nigeria (ATCON) is reportedly demanding a full review of Starlink’s operations in the country after the LEO satellite operator jacked up its prices without regulatory approval.

Last week, according to media reports, Starlink sent a message to its customers in Nigeria saying it will almost double its monthly subscription fee from N38,000 ($23.40) to N75,000, citing excessive inflation.

The message also said Starlink will raise the cost of its terminal kit from N440,000 to N590,000.

Meanwhile, the cost of its regional roaming plan (which allows customers to use terminal kits anywhere in Nigeria rather than a fixed location) will increase from NGN49,000 to NGN167,000.

Reuben Muoka, director of public affairs for the Nigerian Communications Commission (NCC), said that while Starlink did file a request with the NCC to raise its tariffs, the commission has not yet given official approval.

The NCC also issued a statement saying it would sanction Starlink over the matter, although it retracted the statement later the same day, saying it was “issued in error”.

That said, Starlink could still face disciplinary action, as the Nigerian Communications Act (NCA) 2003 specifically requires telecoms operators to obtain prior approval from the NCC before adjusting any tariffs.

While Starlink said existing customers would not have to pay the adjusted tariffs until October 31 – theoretically giving the NCC time to grant approval – new customers signed on before then would be charged according to the new pricing scheme.

Tony Emoekpere, president, ATCON issued a statement urging the NCC to take action, complaining that Starlink’s unauthorised price hike is unfair to local operators who must follow the same regulations.

Emoekpere also said Starlink’s pricing model creates an uneven playing field because it’s tied to international benchmarks.

“Competing with foreign entities that benchmark against the dollar creates a serious challenge [for Nigerian operators],” he said.

Emoekpere called on the government to review Starlink’s licencing conditions and require them to localize their operations.

“Otherwise, we risk creating an unfair advantage that could harm local players.”

Ironically, Starlink’s planned price increase brings it more in line with equivalent fixed-broadband services in Nigeria.

According to an analysis by Space in Africa, the median monthly subscription fee for six fixed-broadband providers that offer a 1,000GB data package similar to Starlink’s is a little over N74,000