Telecom
Mba-Uzoukwu, ISPON President Decries 30% Utilisation Rate of 11 Datacenters in Nigeria
Mr. Chinenye Mba-Uzoukwu, president, Institute of Software Practitioners Association of Nigeria (ISPON) has decried the under utilisation of the 11 data centres in Nigeria, putting the current utilisation rate at below 30%.
He noted that the low adoption indicated that despite the forecasted growth in installed capacity, the patronage by way of utilisation does not match the expected levels.
He made this known while speaking at a Technology Forum organized by the Nigerian Information Technology Reporters Association (NITRA) in Lagos, with the theme: “Achieving 30% Growth In Local Cloud Hosting By 2024”.
According to Mba-Uzoukwu, “we are faced with a puzzling question: the housing estates that our friends are building against all odds in a super-challenging environment, will they be occupied by offshore tenants or ourselves?”
“There are 11 datacenters in Nigeria and the largest are expanding their capacity constantly in anticipation of a growing demand but currently the utilisation of capacity probably sits at below 30%.
“With four certified Tier 3 Constructed Facilities in Nigeria and more on the way, the Africa datacenter market is expected to cross $3bn by 2025, growing at a CAGR over 12%.
“This indicates that despite the forecasted growth in installed capacity, the patronage by way of utilisation does not match the expected levels”.
Unformed report also indicates that Galaxy Backbone Limited which is the only Uptime Institute Certified Tier 3 Datacenter in the public sector (in Nigeria) is currently estimated at 38% capacity utilisation of its 2.5MW capacity.
To this end, the President of ISPON said, “We must ask why”.
“The 2020 GSMA report highlights that availability of internet services has not translated to adoption while there is no established correlation between broadband availability and indicators of innovation such as hubs and software companies e.g. Aba, Enugu, Calabar, Benin and Jos have limited broadband and predominantly 2.5G/3G networks yet host significant innovation activity.
“ISPON’s research indicates that this puzzling scenario is directly related to local software – local in the sense of being developed by Nigerians for Nigerians to solve Nigerian problems.
“While we have seen phenomenal growth in the fintech space, the vector and velocity for the evolution of Software Nigeria as a whole remains constrained by the extent to which the Digital Economy which is emerging is anchored on local innovation and local utilisation.
“The datacenters performance is driven by users are large corporates and MNCs for whom data services are not taken lightly as they commit to long-term relationships on the basis of reliability especially High Availability which is indexed to global standards. In this context, Digital Transformation, especially in the public sector is critical pre-requisite.
“Digital Transformation delivers joined-up government that enables the policy and process of governance to ride on top of IT infrastructure from broadband to software solution stacks. It also presents opportunities for entrepreneurship and innovation to flourish as solution providers get work to do. For this dynamic to be accelerated and proliferated, it is difficult to over-estimate or emphasise the importance of the Local Cloud which must be the initial point of access for a broad-based digital adoption and transformation strategy in a rising tide that lifts all.
“We often fail to recognise and prioritize this fundamental – perhaps it is an inconvenient truth?
“There is much to unpack in this but it will suffice to say that ISPON believes that the Software Nigeria and Data Nigeria are conjoined twins – separating the two is not only difficult but in this case, it is foolhardy because what we share is vital to the survival of each twin. Let us therefore proceed with this in mind!”
He also applauded NITRA for hosting the event, adding that ISPON sees the Association as an integral component of the technology ecosystem as partners as well as practitioners whose largely unsung efforts have been pivotal to the emergence of the industry we celebrate today as Africa’s most vibrant and fastest evolving technology ecosystem.
“ISPON celebrates you, one and all!
“We are therefore extremely pleased to be a part of this celebration and the discussions that follow will be one more block laid by NITRA in the tremendous role being played by your Association and members in the growth of the Digital Economy.
“We thank you for what you do and once again, give our assurances of a continued partnership.
Chike Onwuegbuchi, Chairman of Nigeria Information Technology Reporters’ Association (NITRA), said that the theme was carefully selected to enable stakeholders in the information and Communications Technology to discuss issues that will bring growth and development to the sector.
“This edition”, he said, “we are looking at local cloud hosting a very important aspect of technological development.
“Cloud computing has been described as the greatest game changer since the creation of the internet and is one of the fastest growing areas of technology today. It can be simply defined as renting time on a computing infrastructure over the internet, rather than building your own from the ground up. In a way, it could be described as outsourcing your computer infrastructure.
“Cloud computing offers scalability and reliability that cannot be matched by a single enterprise.
“Today, we are talking of data protection. How can you protect data that is warehoused outside of our shores?
“Local cloud hosting also helps to keep our local internet traffic local as local content providers host their content in-country.
He also recalled that NITDA in 2019 launched Nigeria’s Cloud computing policy and one of the goals of this Policy is to ensure a 30% increase in adoption of cloud computing by 2024 among Federal Public Institutions (FPIs) and SMEs that provide digital-enabled services to the government.
“The policy also targets 35% growth in cloud computing investments by 2024. It is on this that we selected the theme of today’s event.
“When we are talking about local cloud hosting we can’t achieve it if we don’t patronize local datacenters; this informed the presences of datacentre operators in this discourse.
The Forum attracted industry stakeholders including corporate organisations; Nigeria Internet Registration Association (NiRA); Internet Exchange Point of Nigeria (IXPN); Cloudflex; Layer3; Vintage Confluence LLC and industry associations – ISPON, ALTON, ATCON, NCS, amongst others.
Asset Management Corporation of Nigeria (AMCON) has commenced the process of divesting its interest in NTEL/NATCOM, saying the telecommunications company has undergone a major transformation that positions it as one of its most promising asset recovery success stories.
NatCom Development and Investment Limited, trading as ntel, is a Nigerian telecommunications company that acquired the core legacy assets of the defunct Nigerian Telecommunications Limited (NITEL) and its mobile arm (MTel) in 2015.
Mr. Gbenga Alade, managing director and chief executive officer, AMCON, disclosed this during an interactive session with senior media executives in Lagos at the weekend, where he also revealed that the Corporation recovered about N165 billion in the first half of 2026, representing a 64 per cent increase over the N107 billion recovered during the corresponding period of 2025.
Alade said the planned sale of NTEL follows the successful divestment of the Ibadan Electricity Distribution Company (IBEDC) and forms part of AMCON’s strategy to unlock value from distressed assets while attracting credible investors into key sectors of the economy.
According to him, the divestment programme is being conducted through a transparent and structured process designed to attract strategic investors capable of repositioning the telecoms company for sustainable growth.
He explained that NTEL, the successor to the defunct Nigerian Telecommunications Limited (NITEL), has embarked on a comprehensive three-pronged transformation strategy aimed at restoring its competitiveness and enhancing its investment appeal.
“The repositioning effort is designed to maximise value, strengthen operational competitiveness and prepare the business for long-term sustainability under new investment,” Alade said.
He described the transformation of NTEL as a significant milestone in the revitalisation of Nigeria’s legacy telecommunications assets, noting that the company remains an important part of the country’s telecom infrastructure and history.
Alade expressed confidence in the Board and Management of NTEL/NATCOM, saying their leadership has laid a solid foundation for the company’s next phase of growth.
“The remarkable transformation of NTEL is poised to become one of AMCON’s most notable success stories in the telecommunications sector. We have full confidence in the Board and Management of NTEL/NATCOM as they continue to demonstrate experience, innovation, diligence and commitment towards positioning this Nigerian-owned company to compete favourably with its peers both locally and internationally,” he stated.
He assured stakeholders that further updates on the divestment exercise would be communicated as major milestones are achieved, stressing AMCON’s commitment to transparency throughout the process.
Alade said the telecommunications divestment aligns with AMCON’s statutory mandate of maximising value from distressed assets, supporting economic growth and strengthening confidence in Nigeria’s financial system.
Beyond the planned sale of NTEL, the AMCON boss highlighted the Corporation’s improved operational performance, revealing that recoveries rose sharply in the first six months of the year.
According to him, the Corporation recovered approximately N165 billion between January and June 2026, compared to N107 billion recorded in the same period last year, while maintaining a cost-to-recovery ratio of just 2.3 per cent, reflecting greater operational efficiency.
Alade also announced what he described as a landmark Supreme Court judgment that strengthens AMCON’s debt recovery powers and clarifies key provisions of its enabling law.
He said the apex court affirmed that the AMCON Act constitutes a special legal regime that must be interpreted purposively because the Corporation was established to address the financial crisis triggered by the systemic banking challenges of 2008.
According to him, the Supreme Court further ruled that AMCON is exempt from paying stamp duties and confirmed that regardless of the size of an obligor’s indebtedness, the Corporation has the statutory authority to dispose of collateral assets in enforcing its rights and recovering outstanding debts.
“While we celebrate this landmark judgment and several other legal successes, we are not resting on our oars. We remain mindful of the various tactics employed by recalcitrant obligors to frustrate the Corporation’s operations,” Alade stated.
Responding to calls for the winding down of AMCON, the Managing Director alleged that many of those advocating the Corporation’s closure are debtors seeking to frustrate its recovery efforts.
He stressed that any decision on AMCON’s sunset remains the exclusive responsibility of its Board and the Central Bank of Nigeria (CBN), adding that the Corporation remains focused on recovering debts owed on behalf of the Nigerian people.
Alade also said AMCON has intensified collaboration with debt recovery partners, solicitors and receiver managers to improve the effectiveness of its recovery strategies.
“We regularly engage and sensitise our debt recovery partners, solicitors and receiver managers on the unique provisions of the AMCON Act. This ensures that when they appear in court on matters concerning the Corporation, they are fully conversant with both the facts and the applicable legal framework.
“In recognition of their commitment, and in response to prevailing economic realities, the Corporation has reviewed the commission structure for debt recovery agents and partners across the board. Together, we remain confident that we will continue to achieve significant success in our recovery efforts,” he said.
Africa risks falling behind in the global artificial intelligence (AI) economy, unless governments and the private sector rapidly increase investment in digital infrastructure, data capabilities and home-grown innovation.
This is according to a research report by Boston Consulting Group (BCG), titled: “Advancing Africa’s AI and digital economy”.
It focuses on how Africa can accelerate investment in digital infrastructure, AI capabilities and regional collaboration, to build a competitive AI-driven economy and avoid falling behind in the global AI race.
The report argues that while AI is expected to contribute $15.7 trillion to the global economy by 2030, Africa is capturing only a fraction of the opportunity because it lacks the infrastructure, skills and investment needed to compete in the emerging AI economy.
Although the continent has one of the world’s youngest populations and rapidly growing digital adoption, BCG warns that Africa remains primarily a consumer of digital technologies, rather than a producer of the infrastructure, platforms and intellectual property that will underpin future economic growth.
“Africa stands at a defining moment in the global AI revolution,” says Hamid Maher, MD and senior partner at BCG and one of the report’s authors.
“The continent has significant structural advantages, including a young population, growing digital adoption and the opportunity to build without legacy constraints.
“However, unless Africa invests in owning its digital infrastructure, data and AI capabilities, it risks becoming a consumer rather than a creator of the technologies that will shape future economic growth.
“The decisions taken today will determine whether Africa captures value from AI or simply imports it.”
Structural weaknesses
The report highlights the widening gap between Africa and the rest of the world. While digital activities account for about 15% of global GDP, Africa’s digital economy contributes only 5% of the continent’s GDP. At its current pace, this figure is projected to reach only 8.5% by 2050, it notes.
BCG says this slow progress comes despite encouraging developments, including Africa’s position as the world’s fastest-growing cloud market and strong adoption of mobile technology.
However, the continent accounts for 18% of the world’s population but less than 1% of global data centre capacity. At the same time, fewer than 2% of Africa’s approximately 2 000 languages are supported by large language models, limiting the relevance and accessibility of AI technologies for millions of people.
The report warns that these shortcomings are becoming increasingly significant as AI reshapes global industries. Traditional growth sectors − such as business process outsourcing, call centres and labour-intensive manufacturing − are likely to become increasingly automated, reducing opportunities that previously helped emerging economies industrialize.
“Without stronger participation in AI production, Africa risks exporting its data, while importing expensive AI services developed elsewhere, repeating historical patterns in which the continent supplied raw materials but captured little value from downstream industries,” it warns.
Three key barriers
BCG identifies the top challenges that continue to constrain Africa’s AI ambitions.
The first is economic fragmentation. “Africa’s 54 economies are individually too small to justify many of the large-scale investments required for AI infrastructure, while organisations within countries often lack sufficient capital to build digital platforms independently, “it says.
The second challenge is a shortage of AI talent. According to the report, Africa has about 62 000 AI specialists, representing only around 5% of the global AI workforce. Many of these professionals work remotely for overseas employers, limiting the development of domestic AI ecosystems.
“Africa has the ambition and, crucially, the talent it needs. With focus, coordination and political will, the continent can transition from disadvantaged digital consumer to empowered digital value creator and can secure its economic future.”
The third barrier is reliance on imported technology. African organisations often face higher software licensing costs than their international counterparts, while remaining dependent on foreign technology vendors, restricting innovation and limiting local value creation, the report asserts.
Patrick Dupoux, MD and senior partner at BCG, said these structural constraints are not unique to Africa, but require coordinated action.
“The challenge is not simply about adopting more digital technologies,” he points out.
“It is about ensuring African institutions increasingly build, govern and own the infrastructure, data and innovation ecosystems that power AI. Countries that produce AI capabilities rather than merely consume them will capture far greater economic value and create more sustainable jobs for future generations.”
Building Africa’s AI future
Rather than focusing solely on technology adoption, the report argues that Africa must establish the foundations needed to create its own AI economy.
BCG recommends building digital public infrastructure through public-private partnerships, with digital identity systems, payment platforms and secure data exchange networks serving as core building blocks.
The report also stresses the importance of stronger data governance to ensure information can be securely shared, while remaining under African ownership and control.
Ali Ziat, MD and partner at BCG, said collaboration will be essential if Africa is to compete globally.
“No single country or organisation can build Africa’s digital future alone,” he said.
“Pooling investment, creating shared infrastructure and embracing open systems will make projects financially viable, while encouraging innovation across borders. Combined with strong governance and coordinated leadership, these actions can help Africa become a global AI value creator instead of remaining on the side-lines.”
Young professionals have been urged to embrace continuous learning, resilience and personal responsibility as they prepare for leadership in an increasingly competitive world.
MTN Nigeria
The charge came from the Chief Executive Officer of MTN Nigeria, Dr. Karl Toriola, during his session at the ninth edition of the Redefinition Conference, held at the United Evangelical Church on July 25, 2026, themed “CTRL+S: Save. Deploy. Scale.”
The conference brought together business leaders, entrepreneurs and emerging professionals to discuss leadership, innovation and personal development.
Speaking during an interactive session, Toriola encouraged participants not to be discouraged by failure, stressing that mistakes are part of every successful journey. “Make no mistake: I have made a million mistakes in my life. Probably what has gotten me to where I am is I don’t let them completely wipe me out, and I always learn something and try and make it a little bit better after that mistake, and try not to repeat it over again,” he said.
He also challenged young professionals to take ownership of their careers through deliberate self-development. “Your career, your future, your life is your responsibility and your responsibility only. And nobody is going to give you any leeway because you started from behind… It is up to you to close that gap,” he said.
Toriola added that throughout his career, he invested his own time, money and vacation periods in developing new skills, including finance and risk management.
On the future of work, Toriola called on organisations to create environments where younger employees are encouraged to contribute ideas. “The balance will come if you give the new people that you bring into your organization an excessively loud voice. The problem is you bring in these people, and then you put them in a corner… and you shut them down,” he said.
He added that businesses must remain open to new thinking if they want to stay relevant in a rapidly changing world.
The session ended on a memorable note when a student studying Data Engineering and Analytics requested an internship opportunity at MTN Nigeria.
Impressed by the student’s confidence, Toriola directed the individual to a member of his team after the session to explore the opportunity.
The exchange drew applause from the audience and reinforced the day’s message on taking initiative and creating opportunities through confidence and boldness.
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