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Lagos Tops Investment Destination List in Africa for Digital Infrastructure

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This was highlighted during a panel hosted by Digital Infra Africa where industry experts deliberated on the impact of growing investment by global players in data centers on the Continent.

The session moderated by Mustapha Louni, Senior VP, Middle East, Africa and Greater India, Uptime Institute had MainOne CEO, Funke Opeke joined by Robert Mullins, CEO, Raxio Group; Jan Hnizdo, CEO, Teraco and Mike Last, Chief Marketing Officer & VP, International Business Development, WIOCC.

These market leaders noted the spate of acquisitions and new entrants within the past six months including Equinix – MainOne’s new parent company, Digital Realty , Cassava Technologies and WIOCC.

As a result, growth in investments in the Data Center market on the continent has become exponential. Such investments continue to be fuelled by the growth of broadband access and data consumption across the Continent’s large economies, of which Nigeria is the largest, and Lagos is the commercial nerve center.

MainOne CEO, Funke Opeke stated that, “When you look at the connected population and the growth potential of the numbers that remain unconnected, we see a large opportunity for growth in data consumption levels, and this is attracting global market players.

“MainOne is market leader in Lagos already and we will continue to make investments with our new parent company Equinix to remain at the forefront of the increasing digitalisation happening on the continent”.

These views are in line with recently published statistics on investments flowing into the Tech sector on the continent.

Lagos State Government has actively championed these initiatives and investments in technology by creating an enabling environment for businesses to flourish, and also by providing active support to investors in the State through its numerous programs and initiatives.

The effort is bearing fruit, as in the last one month, Lagos has attracted over One Billion dollars’ worth of committed investment from technology giants like Microsoft who opened its new African Development Centre in the State, Google who this week launched its state-of-the-art submarine internet cable in Lagos, and Equinix who recently completed its acquisition of MainOne with a $320 million deal.

To put the level of investment that Lagos would attract in the next few years into context, at the recent launch of MainOne’s MDXi Lekki II Data Center, Judith Gardiner, VP Growth and Emerging Markets at Equinix stated that, “…Amsterdam as a key hub, with a population of 1 million people has 9 Equinix Data Centers with over 106MW capacity.

“Lagos, with a population of over 20 million, has the potential to far exceed this footprint. We are committed to bringing our capital, expertise, knowledge and customers to accelerate the digital age in Nigeria”.

Equinix with a market capitalization of $68.95 billion as of April 2022 is the world’s leading Digital Infrastructure company and their presence in Lagos through MainOne will grow the digital landscape.

Placing the spotlight on the increasing role Lagos is playing in leading technology investments on the African continent was a major highlight of this year’s Digital Infra Africa event.


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FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

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Nigeria will criminalize the destruction of broadband fiber cables following repeated complaints by MTN Nigeria Communications Plc and other telecommunications companies that they are losing billions of naira, according to people familiar with the matter.

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

Federal ministry of works, which supervises federal road constructors, is finalizing the regulation that will be signed as an executive order by President Bola Tinubu, said the people, asking not to be identified as they weren’t authorized to comment.

While there are presently laws against vandalism, the authorities are aiming to regulate construction firms more closely.

The order will enforce stiff penalties on offenders, said the people, declining to provide more details or say when it will be signed.

“Telecom assets are critical backbone that supports the economy across sectors,” said Temitope Ajayi, a senior presidential aide, who noted that the Association of Telecommunications Companies (ATCON) has been demanding the classification for years.

New rules will provide “further assurance that the Nigerian government will protect their investments against vandals and criminal elements.”

The Nigerian Communications Commission (NCC) estimates that the sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5% in the third quarter of last year.

The move will help alleviate pressure on the telecoms sector, which is facing increased operating costs and sales pressures from a sharp depreciation in the currency and a threefold increase in energy prices.

Repairs and revenue losses from damaged cables is estimated to have cost the sector almost 27 billion naira ($23 million) last year alone, documents seen by Bloomberg show.

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show. On Feb. 28, a cut on its network in three different locations by a road construction firm, an oil serving company and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than 11 billion naira – enough to build 870 kilometers of new fiber lines to areas without coverage.

A presidential order on the matter would be welcomed, said Tony Izuagbe Emoekpere, president, Association of Telecommunications Companies of Nigeria.

“When it comes to communication infrastructure, they are destroyed at will, so we are eagerly awaiting the president’s order,” he said. “It would be a great boost to the industry, and it will also encourage investment.”

 

 


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Telegram Eyes 1Bn Users amidst Political Pressures

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Telegram, the messaging giant founded by Pavel Durov and headquartered in Dubai, anticipates hitting a remarkable milestone of one billion active monthly users within the next year.

Durov’s departure from Russia in 2014, prompted by governmental pressures to stifle opposition communities on his VK social media platform, underscores Telegram’s commitment to neutrality despite geopolitical challenges.

With 900 million active users currently, Telegram stands as a beacon of free speech in the digital realm, particularly influential in former Soviet Union republics and pivotal during conflicts like the Russia-Ukraine standoff.

Durov’s staunch advocacy for freedom of expression and opposition to censorship by tech giants like Apple and Google reinforces Telegram’s status as a neutral platform.

Opting for the UAE as its base, Durov cites its neutrality and openness as conducive to Telegram’s ethos, serving both opposition groups and governments alike while maintaining impartiality.

In Durov’s vision, the pursuit of freedom eclipses material gain, shaping Telegram’s trajectory as a bastion of digital liberation.

 

 


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NITDA, NIMC Announce Collaboration To Strengthen Digital Economy

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To further strengthen Nigeria’s digital economy in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, the National Information Technology Development Agency (NITDA) and National Identity Management Commission (NIMC) have announced a collaboration on National Public Key Infrastructure (PKI) and Digital Public Infrastructure (DPI) to enhance and create synergy between digital identity, payment ecosystem, and secure & seemless data exchange capabilities for Nigeria.

During the meeting between the Director-General of NITDA, Kashifu Inuwa Abdullahi, and Director General of NIMC, Engr. Bisoye Coker-Odusote, with some management staff of both organisations, they discussed various initiatives, which include building DPI stacks for a secured and seamless data exchange and forming partnerships to transform the national identity system.

This collaboration also aims to harness the potential of the innovative ecosystem and emphasise the use of Public Key Infrastructure (PKI) to drive digital transformation in Nigeria.

To ensure a smooth implementation, a 12-man committee was set up. This committee will play a crucial role in kickstarting and harmonising the initiatives. It is expected to deliver a comprehensive implementation report within the next 4 weeks


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