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Nigeria, Ethiopia Ripe for Datacentre Development

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COVID-19 has fast-tracked digital transformation and will drive utilisation and the case for increased investment in datacentres across Africa, with countries like Ethiopia and Nigeria identified as potentially lucrative growth markets, according to market research by industry analysts.

Guy Zibi, who heads up research at Xalam Analytics, said South Africa, Kenya and Nigeria are already key hubs for datacentres and countries with solid internet infrastructure and strong economic sectors will attract more investment into datacentre development.

“Datacentres need economic activity and data traffic to thrive. The best opportunities, therefore, lie in markets that are both hubs of economic activity and hubs of data traffic. South Africa and North African markets, primarily, but also Nigeria, Kenya, Angola and Ghana,” said Zibi.

He added that there is “a secondary set of opportunities in markets that have promising internet foundations but virtually no hosting infrastructure” and these include the DRC, Ethiopia, and Francophone West Africa.

This week the Oxford Business Group and the Africa Data Centres Association released the Data Centres in Africa Focus Report, which highlights Africa’s economic recovery from the pandemic as the “primary factor that will drive data consumption in Africa”.

According to the World Bank, Sub-Saharan Africa is set to emerge from the 2020 recession triggered by the pandemic, with growth of 3.3% in 2021.

Digital financial inclusion is expected to “play a leading role in that recovery” for most African countries. The improved digital financial inclusion “will drive demand for datacentre capacity as institutions seek to store and protect rising levels of sensitive customer” data.

The continent’s traditional financial institutions “are migrating their operations to datacentres and will continue to do so as they look to expand their digital offerings” in the face of threats of further infection waves of COVID-19.

Ayotunde Coker, the chairman of Africa Data Centres Association highlights Ethiopia as a “particularly interesting market” based on increased opportunities following the deregulation of the telecommunications industry through privatisation, as well as growing broadband availability.

Ethiopia’s recently launched mobile money platform, Telebirr has also soared to above 3 million users within the first few months of launch.

Nigeria is another market that offers standout opportunities for datacentre growth.

“The country has a large population, of which approximately one hundred and fifty million people use the internet, a broadband penetration of nearly 45 and an advantageous geostrategic location. Indeed, geography is an important element to consider when constructing datacentres,” said Coker.

However, North Africa’s datacentre development is likely to be constrained due to its proximity to European datacentre clusters, particularly Marseille in France.


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Court Grants N50m Bail to Hackers Who Allegedly Stole N1.9Bn from MTN Network

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Justice Akintayo Aluko of the Federal High Court in Lagos yesterday granted bail in the sum of N50 million to Timothy Oluwabukola and Anthony Odemerho, two alleged hackers, who were accused by the police of allegedly hacking into MTN Nigeria Communication Plc system and stealing airtime and data valued at N1.9 billion.

Court Grants N50m Bail to Hackers Who Allegedly Stole N1.9Bn from MTN Network

The Special Fraud Unit of the Nigeria Police docked the two men before Justice Aluko on a four-count charge of conspiracy, unauthorised access to the company’s web-based Application Programming Interface (API), and unlawful conversion.

Oluwabukola, a student of Moshood Abiola Polytechnic (MAPOLY) Abeokuta, Ogun State, and Odemerho, the proprietor of Resign Regal Academy in Benin City, Edo State, allegedly committed the offences between January and April this year in Lagos and Edo States.

Justice Aluko, in his ruling on separate bail applications filed by the defendants through their lawyers, ordered them to produce two sureties, one of whom must be a civil servant either in the federal or Lagos state civil service and a grade level 14 officer.

The judge also directed that the second surety must be a landed property owner within the jurisdiction of the court, must provide evidence of ownership, and swear to an affidavit of means.

The court further directed that the defendants should be remanded in the custody of the Nigerian Correctional Services (NCoS) pending the perfection of their bail conditions.

Justine Enang, prosecutor, had told the court that the defendants and others at large conspired among themselves and accessed the telecom’s Application Programming Interface (API) of MTN and obtained data from the said application, which they used to defraud the company to the tune of N1.9 billion.

Enang also claimed that the offences contravened sections 27(1)(b), 6(2), and 28(1)(b) of the Cybercrime (prohibition, prevention, etc) Act, 2015, as amended in 2024, but were punishable under Section 8(2) of the same Act.

He also informed the court that the offences violated section 18(2)(b) of the Money Laundering (Prevention and Prohibition) Act, 2022, but punishable under Section 18(3) of the same Act.

 

 

 


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ITU Urges FG to Address Multiple Regulations in Digital Space

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International Telecommunications Union (ITU) has advised the Nigerian government to simplify the National Information Technology Development Agency (NITDA) and Nigerian Communications Commission (NCC) regulatory responsibilities in the digital space.

ITU Urges FG to Address Multiple Regulations in Digital Space

This is part of the recommendations stated in its report on Nigeria titled, ‘Collaborative Regulation: Accelerating Nigeria’s Digital Transformation’.

The report asserted that among other things, the two agencies’ responsibilities for creating industry-specific ICT regulations, data protection, and content control overlap.

The report added that there is a need to clearly define the boundaries between the duties of NITDA and NCC in light of the growing convergence of telecommunications, IT, and ICTs in general.

Using the NITDA Bill to streamline roles The ITU stated that the NITDA Amendment Bill, which is currently before the National Assembly, should clarify the mandate and role, while acknowledging that there are some overlaps between the NCC, the National Office for Technology Acquisition and Promotion (NOTAP), and possibly other entities.

“The NITDA mandate in policy-making and regulation, i.e., whether it is a standards body, a regulatory authority, or a policy-making institution, is unclear, and stakeholders currently differ on what the role should be.

“While the Bill seeks to clarify the position of NITDA, it may inadvertently cause conflict between NITDA and other sector regulators including NCC given the NITDA broad mandate in relation to the ‘digital economy,’ and the lack of clarity in the distinction between the IT sector and the ICT sector.

“Should NCC and NITDA roles not be streamlined or clarified, it opens the possibility for forum shopping, and the duplication of roles, licences and fees levied by public agencies, and payable by ICT sector companies,” ITU added.

 

 

 


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A Greener Future for the Telecoms Industry

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The telecommunications industry globally has experienced growth and transformation, with a rapid increase in data usage and the development of infrastructure to cater to the ever-growing demands of consumers. However, this growth has also brought about environmental concerns.

According to a 2024 report by the World Bank Group, the Information and Communication Technology (ICT) sector contributes at least 1.7 percent to greenhouse gas (GHG) emissions globally.

With climate change and global warming becoming growing concerns, it has become necessary for operators within the telecommunications sector to be aware of the impact of their operations on the environment and take responsible measures to curb the negative ways in which they could affect the environment.

Fortunately, several organizations within the industry have stepped up to imbibe Environmental, Social and Governance (ESG) principles, realizing the need to implement policies and strategies that are geared towards environmental sustainability.

British multinational telecommunications company, Vodafone, has set out an extensive climate transition plan as it hopes to achieve an absolute reduction of at least 90% of GHG emissions in its operations worldwide by 2040. So far, the company has been able to reduce the amount of energy required for each unit of data traffic across its network by 65% less than what was needed in 2020. Also, since 2021, 100% of the grid electricity used in its operations across Europe has been matched with renewable energy sources.

In the United States of America, AT & T has created the Climate Change Initiative (CCI) which is committed to promoting the utilization of smart climate solutions that use AT&T connectivity to reduce greenhouse gas emissions. The company is known to be one of the largest corporate buyers of renewable energy in the United States.

Within the local telecommunications sector, MTN Nigeria has recognized its responsibility to protect the planet and consider the impact of its operations on the environment. As such, the telecommunications giant has taken active steps towards ensuring best practices for a sustainable future.

In 2021, MTN launched its Project Zero Initiative, in line with its long-term goal of reducing greenhouse gas (GHG) emissions and its overall carbon footprint. The organization has gradually transitioned from utilizing high-emission energy sources to eco-friendly and cost-effective alternatives.

According to its 2023 Sustainability report, the company has implemented several energy efficiency measures, including the utilization of 5G and fibre using renewable energy sources in operations and sensitising its value chain actors on energy management and efficiency. These innovative steps have significantly paid off, as MTN achieved a 10.3% reduction in scope 1 and 2 emissions in 2023, compared to the emission values in 2021.

Scope 1, being the emissions from energy sources directly used and controlled by MTN, decreased from 65,899 tCO2e in 2021 to 58,356 tCO2e in 2023. The telco was also able to manage emissions from its energy production sources, which account for Scope 2 emissions, reducing the emission value from 44,196 tCO2e to 40,360 between 2021 and 2023. These reductions in scope 1 and 2 emissions were achieved, despite MTN’s 5.3% increase in total energy consumption in 2023.

The telco has also taken up the responsibility to sensitize its value chain actors on energy management and efficiency, as they are responsible for Scope 3 emissions, which are the toughest to reduce.

With its 2 to 1 SIM Registration Device Revival initiative, MTN has also been able to manage e-waste, which is also a contributor to GHG emissions. The initiative, which involves dismantling two devices to retrieve one, is expected to divert 11,760kgs of e-waste from landfills.

Although MTN has made these impressive strides in its sustainability goals, it is only a fragment of what the company intends to achieve, as the goal is absolute carbon neutrality.

Speaking on MTN’s commitment to protecting the planet and the Project Zero initiative, the Chief Technical Officer, Mohammed Rufai, said “With a core focus on reducing our carbon footprint to achieve Net Zero by 2040, Project Zero exemplifies our dedication to sustainability and drives transformative change across all aspects of our operations. By prioritising initiatives like renewable energy adoption and green technology integration, Project Zero helps us meet our sustainability goals”.

Even as the telco moves towards expansion, it remains committed to its environmental sustainability goals. The company has stated that its soon-to-be-launched data centre will operate using eco-friendly energy sources with low-emission properties and eventually move to utilizing zero-emission energy sources.

The telecommunications sector is a significant contributor to innovation and economic growth within a nation. But it must also be a frontrunner in environmental sustainability. With notable organizations like MTN embracing eco-friendly practices, the industry can reduce its environmental impact and contribute to a sustainable future.


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