Telecom
Nigeria Loses Money, Content as Internet Traffic Heads Abroad
Mohammed Rudman, managing director, Internet Exchange Point of Nigeria (IXPN), has said that keeping local traffic local and avoiding international links, would help local operators and users reap substantial cost savings, provide substantial local bandwidth and significantly improve local internet performance.
Rudman who spoke to Nigeria CommunicationsWeek expressed worries that only 10 percent of internet traffic from Nigeria are directed at local content while 90 percent goes out of the country.
He also urged local content providers who host their servers outside of the country to consider relocating them in other to boost local traffic and save money for the country.
“Media and entertainment contents are generated locally but hosted abroad. The day we experience cut to undersea cable infrastructure that links Nigeria to the outside world, we won’t have access to those content which are generated here and are meant for Nigerians,” he added.
Corroborating Rudman, Mark Tinka, head of engineering at Seacom, a submarine cable operator with a network of submarine and terrestrial high-speed fibre-optic cable that serves the east and west coasts of Africa, said that 90 percent of Africa’s Internet traffic comes out of Europe.
“Much of that content was traditionally hosted in North America, but the content owners have, over the years, expanded their presence into Europe and the Asia-Pacific to improve the experience of their users and customers”.
“Most African Internet users tend to get much more of their content from Europe than from the US. Seacom’s dream is to one day be able to keep the majority of traffic on the continent, thereby reducing the amount of money Africa spends on transporting traffic to Europe. That will also help to drive more Internet penetration in Africa because of a reduction in cost of business,” Tinka noted.
Rudman, however decried the high cost of hosting servers at data centres located in country which makes it difficult for content providers except for banks that have the financial muscle to afford the cost.
He attributed the high cost of the service to power issues in the country.
“More so, availability is important in driving local traffic. Taking content to the edge of the network makes cost cheaper, making the service closer to the end user. Uptime also plays a crucial role, this is why most data centre providers seek international certification,” he noted.
Making case to keep local internet traffic local, Mr. Ayotunde Coker, managing director of Rack Centre, said that Nigeria has one of the largest internet user bases in the world and driving local content hosting will compliment Nigerians desire to embrace the internet the more.
“Nigerians are keen users of the internet, be it via tablet, PC’s or mobile devices. This new initiative enhances IXPN’s vision for online development in the country. Rack Centre is a quality, carrier neutral facility that intends to keep raising the bar for data centre providers in Nigeria with a string of firsts; first to be Tier III design certified, first carrier neutral Tier III site and now the first Tier III data centre to sponsor and establish an Internet Exchange Point,” Coker said.
Nigeria’s telecom operators recorded 155, 397 fibre-cut incidents between April and May 2026, and these they blame on why internet or calls suddenly stop working.
Data from the Nigerian Communications Commission (NCC) showed fibre-cut incidents increased from 74 276 in April to a record 79 121 in May, bringing the two-month total to the highest level recorded by the industry.
This represents a 2 428% increase from the 5 934 incidents reported during the first quarter of 2026.
Vandalism remained the leading cause of fibre cuts, accounting for more than 54 000 incidents despite telecom infrastructure being designated as Critical National Information Infrastructure, a classification intended to strengthen protection of key digital assets.
Also road construction constantly damages fiber where iggers and machines tear up buried cables during road repairs or construction.
Even with all these, some state governments make it hard for companies to fix cables quickly across different areas with all manners of fees and levies.
The NCC designation provides for penalties of up to 10 years’ imprisonment for offenders, but operators continue to face widespread infrastructure damage.
Proposed solutions, including Nigeria’s Dig-Once policy and AI-powered fibre sensing technologies, have yet to achieve widespread adoption.
The NCC is developing a cost-based framework for shared underground duct infrastructure, while operators are exploring AI-powered fibre sensing technologies that can detect cable damage in real time and improve network resilience.
Nigeria is pursuing ambitious broadband targets under its National Broadband Plan and has expanded fibre deployment to about 35 000 kilometres.
However, infrastructure protection has not kept pace with network expansion, leaving subscribers vulnerable to unreliable connectivity despite continued operator investment.
Standard Bank has partnered with Helios Towers to provide a $29 million Social Documentary Credit Facility. According to the financial services company, this transaction marks Standard Bank’s first Documentary Credit Facility structured in a Sustainable Finance format.
It notes that the facility will support the procurement and importation of telecommunications infrastructure and related services across Africa.
It will also provide payment certainty to suppliers, while supporting Helios Towers’ working capital requirements and infrastructure expansion programme, the bank adds.
Structured in accordance with the Loan Market Association’s Social Loan Principles, the financing is designed to promote digital connectivity and telecommunications infrastructure development in underserved markets.
This will help Helios Towers further expand its footprint and enhance mobile network coverage and connectivity across the continent.
Helios Towers operates one of Africa’s independent telecommunications tower platforms, enabling mobile network operators to extend coverage across multiple markets.
Standard Bank notes that the facility supports the expansion of tower infrastructure and services, increased network densification and improved connectivity in underserved markets and remote regions across the African continent.
It will also drive digital inclusion and tackle the digital divide while supporting economic growth and socio-economic development.
“This transaction demonstrates the power of innovation in trade finance. By combining a first-to-market Social Documentary Credit Facility with a cross-border funding solution, Standard Bank has supported Helios Towers’ growth ambitions while helping extend digital connectivity to underserved communities across Africa,” says Benoit Samouilhan, global transaction banker at Standard Bank Corporate and Investment Banking.
According to the bank, this facility enables positive social impact by increasing and improving network coverage and connectivity in some of the world’s most remote regions.
“Reliable digital infrastructure is fundamental to Africa’s future growth and development,” says Alex Carter, group finance director at Helios Towers.
“This facility provides us with the flexibility and certainty needed to support our ongoing infrastructure investments while advancing our mission of expanding connectivity across the continent. We value our longstanding relationship with Standard Bank and look forward to building on this partnership.”
Nigerian Communications Commission (NCC) will on Thursday convene a stakeholders’ consultative forum to review the draft business rules for Mobile Virtual Network Operators (MVNOs) in Nigeria.
NCC
The forum, scheduled to hold at 10 a.m. at the NCC Annex Office, Mbora, Abuja, is expected to bring together telecommunications operators, industry associations and other stakeholders to provide input on the proposed regulatory framework before its finalisation.
The commission announced the event on its official social media platforms, inviting interested stakeholders to participate in the consultation process.
The engagement is part of the NCC’s efforts to strengthen the regulatory framework for MVNO operations and promote greater competition, innovation and consumer choice in Nigeria’s telecommunications sector.
Mobile Virtual Network Operators are telecommunications service providers that offer mobile services by leasing network capacity from licensed Mobile Network Operators (MNOs), rather than owning spectrum licences or telecommunications infrastructure.
The NCC has identified the MVNO licensing framework as one of its initiatives aimed at deepening competition, expanding access to telecommunications services and driving digital inclusion across the country.
The consultative forum is expected to provide stakeholders with the opportunity to review the draft business rules, make recommendations and contribute to the development of a robust operational framework for the emerging MVNO segment.
The commission is expected to issue further details on the outcome of the consultation after the meeting.
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