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Nigeria’s digital economy growth hinges on AI and data center expansion –Ikechukwu Nnamani

 

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The Chief Executive Officer of Digital Realty Nigeria, Ikechukwu Nnamani, has said the success of Nigeria’s digital economy relies heavily on the growth of Artificial Intelligence (AI) and the development of indigenous data centers.

Nnamani emphasized the critical need for ethical AI solutions and data infrastructure expansion as essential elements in driving the federal government’s digital economy goals.

During a recent engagement with the Executive Committee of the Nigeria Information Technology Reporters’ Association (NITRA), following their ICT Growth Conference themed "Impact of AI on National Development: Prospects, Policies, and Challenges in Nigeria," Nnamani noted that AI, if properly harnessed, could significantly contribute to national development. However, he warned that there is a growing gap between those developing ethical AI solutions and those leveraging AI solely for profit, which poses risks to both local and global economies.

Nnamani highlighted that the trend of unethical AI practices is not unique to Nigeria. Developed countries like the United States are actively working on AI safety regulations to mitigate risks and ensure AI's responsible use. He explained, “Even in the U.S., both Congress and the Executive are pushing efforts to establish AI safety standards and best practices. The focus is on ensuring that while AI brings value, it does so ethically, considering its potential consequences."

Nigeria’s AI regulation – a work in progress

Nnamani acknowledged that AI adoption in Nigeria is still in its early stages, presenting an opportunity for the government to regulate the technology before it becomes widespread. He commended Nigerian regulators for their proactive stance but emphasized the need for ongoing vigilance to ensure AI technologies are deployed ethically.

“The government needs to ask, ‘Is there potential harm from this technology? How do we mitigate it?’ These are critical questions that must be addressed as we embrace AI for national development,” Nnamani said.

He also dismissed fears that AI would lead to mass job losses, arguing that the technology would instead drive upskilling across the workforce. “It’s not AI that takes jobs away; it’s about people needing to be retrained. AI can actually enhance efficiency and cost-effectiveness, creating new opportunities for Nigerians,” he added.

Data center growth key to digital economy

Nnamani also stressed the urgent need for Nigeria to expand its data center capacity to meet the demands of its growing digital economy. Despite recent progress, he noted that the country’s data infrastructure is insufficient to support its economic potential.

“Currently, Nigeria should have at least 600 megawatts of IT load to support its digital economy, considering the size of our economy and population. Yet, we only have about 30 megawatts. This shows that we are far behind in developing the infrastructure needed for a truly digital economy,” Nnamani explained.

He called for increased investment in data centers and infrastructure, highlighting that the private sector must play a crucial role in attracting investors and building the necessary facilities. “We need people with foresight to drive data center growth, and the government must provide supportive regulations that foster industry development, not just extract revenue.”

Challenges facing data center development in Nigeria

Nnamani pointed out that Nigeria faces significant challenges in scaling its data center infrastructure, particularly around power supply and access to foreign exchange (FOREX). The instability of FOREX, coupled with unreliable power delivery, makes it difficult for businesses to make long-term investments and projections.

“Power remains a critical issue. Even when businesses pay for power, it is not always reliably delivered. And while some businesses may have access to FOREX, the volatility of the exchange rate creates uncertainty, making it challenging to plan for future growth,” Nnamani said.

Call for nationwide infrastructure expansion

While Lagos has seen progress in data center infrastructure, Nnamani noted that much of Nigeria still lacks the necessary facilities for digital growth. He called for more cross-city connectivity and infrastructure development to ensure that all parts of the country can benefit from the digital economy.

“There’s still a lot of work to be done across the country. The infrastructure required to support digital growth and improve the social wellbeing of Nigerians simply does not exist in many states,” he remarked.

 

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