Telecom
Nigeria Needs Telecom Infrastructure Funding Bank – Nnamani
Engr. Ikechukwu Nnamani, is managing director of Medallion Communications, a data centre operator in the country. He spoke to chike onwuegbuchi on issues around data centre operations in the country.
Building Private and Public sectors confidence in hosting their servers in the country
We are seeing great improvement in terms of adoption; we are seeing a lot of people appreciating the need for it as well as improvement of uptake of local data centre services compared to what it was in the past. From our own data centre in terms of the uptake year in year out I can say for certain over the last one year we have to increase our data centre capacity significantly just to take in more customers, that for me is an indication that a lot of people are beginning to see the need.
Certifications in the ecosystem and service availability
The Tier certification is being managed by uptime institute and really it is a benchmark where they want to create minimum requirement for availability in terms of support from the data centre most of it is towards power availability, so remember in other environments where data centre have been existing for a long time, the understanding is that they have steady power supply from public sources to private sources power is very steady.
You have cases where for many years they have not experienced a blink in their power supply. They want a situation where you don’t have to depend on public power to run your data centre, those were markets where you have natural disaster like earthquake, tsunami among others that may disrupt public power supply so without these natural disasters you hardly have a disruption all things being equal.
So, the Uptime Institute is assuming for instant if you have data centre in California unfortunately you have the California fire issue that took place last year and your data centre had to be cut off from the public power supply within the data centre do you have availability of power? That will last for 72 hours which is Tier 111 certification, you should be self- sustaining in power for 72 hours if there no public power supply.
That means if you are operating a data centre in California with Tier 111 certification, you have to show outside of the traditional power supply that you have built redundancy, if it goes off you can self-sustain yourself either on battery back- ups, generators or some other means that will ensure that your data centre should be operational for 72 hours in case of Tier 111 certification.
It becomes interesting when you bring such requirement into our climate, where you usually operate your data centre almost on private power supply, like our data centre we operate seven days straight on self -generating power, because the public power supply from PHCN is not available.
So, how much Tier will you put such a data centre? From power perspective it becomes interesting when you look at markets like ours. There was a particular case we were on our self –generating power for more than five weeks running.
Although there are areas that uptime institute looks at but the key point is power. They also look at redundancy; for instance, you should maintain dual power feed equipment to data centre.
My take is that Tier certification is important because it gives a guide to minimum service level you should attain as a data centre. It is worth doing or attaining.
Where I have a problem is when people start using it as a marketing tool as if it is a big deal then I have a problem with that because by default every data centre should operate at that standard.
Why would organisations host their servers with you?
We have been able to offer our customers efficient service at right service levels we are able to create a market place they interface with others. We are able to provide a carrier neutral infrastructure where they are not afraid they are dealing with a competitor with them.
Any service our customers are offering from our data centre we at Medallion don’t go and start competing with them to offer such service. That gives them the confident that truly they are at carrier neutral place.
We also enable every one of our customers to be treated equally in terms of size, whether you are big like MTN or small operator, we give every of them equal opportunity to do their business in efficient and cost effective way. Availability and the minimum standard I enumerated earlier we make sure we don’t fall below them.
I think these are the reasons they are with us, of course pricing is important, I don’t think we are the most expensive in the market. You have to ensure that your client can afford the cost of the services you are offering them. Clearly, Medallion data centre is the most connected presently.
Potential of Data centre business in Nigeria
There have been new data centres in the market since last year I said the country requires 72 data centre with the two new ones we have not even started. Interestingly, the two announcements are still in Lagos where the major existing operators are located. This means that people have not fully understood the situation at stake and what needs to be done to address the problems of geographical spread of the infrastructure.
We have to look at it from the strategic point to ensure that people making investment in data centre make the right one with location in mind.
We need to be able to extend connectivity, service delivery and content across various part of the country so that it is less dependent on the transmission links. I always say, Imagine a call taking place in Sokoto between an MTN subscriber and Glo subscriber and that call comes all the way to Lagos in order to be exchanged before going back to Sokoto. It doesn’t make sense just from the basic principle of it.
Some of these things have to change, if we are to attain the right quality of service and better pricing for services.
Data centres are concentrated in Lagos. Is there no demand for the service outside of Lagos?
The need is there, it is a case of business model and understanding in terms of potential revenue generation. Some believe that the market is in Lagos. If they build a data centre in Lagos they will be able to get return on investment faster in Lagos.
I defer from that line of thinking. I believe there is demand in every state capital in Nigeria that needs to be address, it is a matter of somebody taking the step to go there and set up and then you see the business, that is the way to go, it may take some time but ultimately over time people will find out it is the way to go.
Lagos is still an important market it is not yet saturated even for data centre business but I can assure you that there are some cities today that need it more than Lagos, everybody knows what they are looking for in the business we won’t tell where to locate their business. Some of them are more successful than we are so, we won’t advise them.
In the next few years it will become obvious especially to those who do not see now that it is necessary to build that infrastructure outside of Lagos.
Is Medallion Thinking of Expanding outside of Lagos?
Yes. As we are speaking now we are working out a plan to building a new data centre in Enugu, Kano, Ibadan, Port Harcourt, Asaba and possibly Kaduna in addition to Lagos and Abuja where already have data centres that is our plan for this year 2019.
This is capital intensive project how are going about funding this expansion projects?
It is a tricky one because there is high cost of fund in Nigeria. You have to look outside to see if you can cheaper fund which initially may appear cheaper but when you look at challenges such as exchange rate fluctuations then it becomes a problem even if initially you get it at a cheaper interest rate.
Image you took up a debt finance at dollar exchange rate of 363 suddenly it drops N1,000 that means you need more revenue just to be able to service your debt than you need today, who are you going to pass that across to? That was the reason a lot of companies went under when the exchange rate went from N120 to N350 especially those trading in the oil and gas sector even those in telecoms that is highly dependent on foreign currency in terms of investment building of infrastructure.
One of the things we are pushing through as an association, ATCON is that government needs to intervene in the area of funding the same way it intervene in the manufacturing sector, with the stuff Bank of Industry is doing for the manufacturing sector. Even in the banking sector when there was crisis in that sector they came in with AMCON and others to give some bailout among others.
There is need for government to intervene, some of us have advocated for the setting up of telecom infrastructure fund bank to provider long term low interest rate financing for telecom infrastructure projects over a long time say between 5 to 10 years and you are given moratorium to build that infrastructure.
You go to a bank and they ask for a collateral which you may not have but the infrastructure you are building should be a collateral, for banks here they don’t see it that way, they say oh we can’t use your equipment as collateral, they rather want you go and get landed property which some time the cost of getting the collateral is more than the fund you are accessing. Those are the challenges we are facing it is not a Medallion issue it an industry issue which at ATCON we want to address this year among other industry issues.
Nigeria is partnering with Burkina Faso on Project Building Resilient Digital Infrastructure for Growth (BRIDGE), to extend terrestrial fiber-optic routes through Niger and Benin, aiming to cut Burkina Faso’s internet transit costs by up to 50 percent.
Dr. ‘Bosun Tijani, minister of Communications, Innovation and Digital Economy and Dr. Aminata Zerbo-Sabané, his Burkinabe counterpart, have sealed a deal to establish a joint technical committee for regional digital integration at a meeting in Ouagadougou, Burkina Faso’s capital.
At the centre of the discussions was BRIDGE, Nigeria’s connectivity initiative aimed at expanding access to faster, more affordable and resilient internet infrastructure.
Under the proposed collaboration, technical teams from both countries will assess connectivity routes linking Nigeria to Burkina Faso through Nigeria-Niger-Burkina Faso and Nigeria-Benin-Burkina Faso corridors.
The assessment is expected to identify a viable pathway for lowering Burkina Faso’s internet connectivity costs by up to half.
The two countries also agreed to establish a Technical Working Committee to develop an implementation framework for the partnership.
The cooperation will extend beyond fibre infrastructure to other areas of the digital economy.
Nigeria and Burkina Faso plan to explore collaboration on digital skills and talent development, including the potential sharing of Nigeria’s 3 Million Technical Talent (3MTT) model.
The countries will also seek to strengthen ties between their startup ecosystems, support Burkina Faso’s Innovation Campus and collaborate on artificial intelligence, local-language technologies, shared computing infrastructure, cybersecurity and research.
Tijani said the engagement forms part of Nigeria’s broader outreach to neighbouring countries, following a recent visit to Benin Republic, with planned engagements in Niger and Chad.
Federal government said the broader objective is to leverage the country’s expanding digital infrastructure and capabilities to support shared economic opportunities across borders, strengthen regional digital integration and position Nigeria as a digital gateway connecting West Africa and the Sahel.
As the federal government is thinking os helping Burkina Faso, Nigeria’s internet cost is too high.
The cost of internet in Nigeria is driven by a 50% tariff floor increase approved by the Nigerian Communications Commission (NCC), pushing average mobile data to over ₦431 per GB.
Major telecom networks, fiber providers, and satellite services like Starlink have raised prices due to severe inflation, local currency devaluation, and expensive diesel maintenance for cell towers.
Airtel Nigeria is approaching the 18,000-cell-site mark as the telecommunications operator accelerates network deployment across the country, adding more than 1,000 new sites annually and extending high-speed mobile connectivity deeper into rural communities.
The expansion places Airtel as an operator making one of the largest sustained infrastructure commitments to Nigeria’s digital economy, with the company’s network now spanning all 774 Local Government Areas in the country.
More than 99 percent of Airtel Nigeria’s sites are 4G-enabled, with the company continuing to add new capacity and upgrade existing infrastructure as demand for mobile connectivity rises. Airtel Africa’s latest annual report said the Nigerian operation added more than 1,050 new sites during its 2025-26 financial year.
The pace represents a significant increase from the approximately 15,000 sites Airtel operated two years ago. By early 2026, the operator had crossed 17,000 sites, after adding about 2,000 sites in two years.
The current expansion has also taken the network further into locations that have historically been underserved by telecommunications infrastructure. These communities include Kukawa, Borno State; Okomu-Udo, Edo State; Chimbi, Niger State; Orile Ijaiye, Oyo State; Kopii, Benue State; and Aran-Orin, Kwara; among others.
Airtel has previously said a significant portion of its network investments is targeted at deep rural communities, small towns and the fringes of major cities. At a media roundtable in February, Chief Executive Officer, Dinesh Balsingh, said the company intended to maintain the large scale of network expansion during 2026.
“Everyone has the right to digital connectivity, including people in deep rural markets and small communities,” Balsingh said.
The impact of the growth extends beyond the ability to make calls or browse the internet. Wider network availability gives families more reliable access to one another, enables businesses to communicate with customers and suppliers, and supports access to digital banking, education, healthcare and government services.
For farmers in remote areas, mobile connectivity can provide access to current crop prices, weather information, market information and agricultural advisory services. For small businesses, reliable mobile data supports payments, customer acquisition, logistics and digital commerce. For communities, connectivity can improve access to health and social services and help residents participate more fully in the digital economy.
Airtel’s network strategy is also increasingly focused on improving the experience delivered through the infrastructure already in place. In 2025, the company upgraded capacity on about a quarter of its existing sites, deploying higher-capacity radios and moving portions of its backhaul from microwave to fibre.
The operator has also reported a continued addition of spectrum to strengthen its spectrum position. Since November 2025, it has added 20MHz spectrum, which is on track for full integration on all sites this quarter.
Balsingh said the company’s investment programme was designed to improve coverage, capacity and resilience, with the benefits ultimately reflected in the quality of service experienced by customers.
“We have invested with discipline and clarity to strengthen our network nationwide. Those investments are now translating into measurable improvements in performance, customer experience and reach, including in underserved communities,” he said.
Third-party measurements have also continued to provide evidence of changing network performance in Nigeria. Ookla’s Speedtest Global Index, for example, reported a median mobile download speed of 97.74 Mbps for Nigeria in June 2026.
For Airtel, the network expansion not only extends the geographical footprint; but also increases the speed, capacity and stability available to existing customers.
Director of Marketing, Ismail Adeshina, said the company’s network investments were ultimately aimed at making connectivity more useful in the everyday lives of Nigerians, as increasing numbers of consumers, families and businesses depend on mobile services for communication, commerce and access to essential services.
Airtel’s infrastructure programme is also contributing to the wider development of Nigeria’s digital economy.
“With mobile connectivity increasingly serving as the platform for financial services, commerce, education, healthcare, agriculture and enterprise, expanding the physical network effectively increases the number of Nigerians able to participate in those activities,” Adeshina said.
National Information Technology Development Agency (NITDA) is calling for a unified, cross-sector push to translate the framework of the Nigerian Startup Act (NSA) into practical benefits for local entrepreneurs and investors.
The Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, CCIE, represented by the National Coordinator, Office for Nigerian Digital Innovation (ONDI), Ms Victoria Fabunmi, in a group photograph with participants from various Ministries, Departments and Agencies (MDAs) at the Nigerian Startup Act (NSA) Incentives Activation Co-Creation Workshop in Abuja.
Speaking at the NSA Incentives Activation Co-Creation Session in Abuja, organised by NITDA’s subsidiary, the Office for Nigerian Digital Innovation (ONDI), the NITDA boss stressed that while enacting the legislation was a historic milestone, its ultimate success will be measured by its tangible impact on everyday tech ventures.
Delivering remarks on behalf of NITDA Director-General Kashifu Inuwa, ONDI National Coordinator Victoria Fabunmi emphasised that Nigeria must now transition from policy design to operational delivery.
Inuwa noted that while early structural achievements such as setting up the Startup Consultative Forum and launching the digital startup portal have established vital channels for dialogue, the true test of the law lies in whether founders can easily access the relief and resources promised to them.
He said the establishment of the Startup Consultative Forum and its governance structures had created an important platform for sustained engagement among stakeholders, but stressed that the real test of the legislation would be its impact on businesses operating within the innovation ecosystem.
According to him, government agencies, private-sector actors and other ecosystem stakeholders must work collectively to remove institutional bottlenecks and ensure that startups can access the opportunities created by the Act.
Inuwa said the participating institutions possessed different mandates, resources and policy instruments that, if properly coordinated, could significantly improve the operating environment for Nigerian startups.
“We want to go to the next level. We want to be able to say that the actors in our ecosystem have been able to benefit significantly from the legislation that has been passed, and it wouldn’t happen without everyone sitting in this room,” he said.
He urged stakeholders to shift attention from the mere existence of the legislation to its practical implementation, particularly the activation of incentives designed to promote investment, innovation and enterprise growth.
The DG noted that the implementation of the NSA involved institutions across several sectors, including trade, finance, communications, innovation, digital economy, science and technology.
He said bringing these institutions together was necessary to identify gaps, clarify responsibilities and develop workable mechanisms for delivering the incentives to intended beneficiaries.
Inuwa also urged stakeholders to embrace continuous engagement and feedback, noting that the success of the Act would depend largely on the ability of implementing institutions to work together and respond to the evolving needs of the startup ecosystem.
He said recommendations from the session would contribute to ongoing efforts to strengthen the implementation framework and create an environment where Nigerian startups could scale, attract investment and compete effectively in global markets.
In a context-setting presentation, “Operationalising the Incentive Provisions of the Nigerian Startup Act,” Ms Elma Andah, Acting Lead, Strategy, Research and Analytics at ONDI, said the Act provides more than 31 incentives distributed across six major categories.
She identified the categories as tax and fiscal incentives, regulatory support, funding access, exports and trade, ecosystem enablers, and training and capacity building.
Andah explained that implementing the incentives required the participation of more than 15 government institutions, making inter-agency coordination central to the success of the legislation.
She said the Nigerian Startup Act, signed into law on October 19, 2022, was designed to promote innovation, improve access to funding, strengthen collaboration and position Nigeria as a leading technology and innovation-driven economy in Africa.
According to her, Nigeria’s startup ecosystem has continued to demonstrate significant potential, with more than 3,000 startups and several globally recognised technology companies.
She added that Nigerian startups attracted about $410 million in funding in 2024, despite the challenging economic environment.
Andah highlighted several areas of progress under the Act, including engagements with states on adoption, the operational startup support engagement portal, improved startup labelling timelines, the Startup Consultative governance framework, the Startup Investment Seed Fund framework and ongoing efforts to operationalise the regulatory sandbox framework.
She, however, stressed that the interconnected nature of the incentives meant that no single institution could deliver them independently.
“No single institution can deliver all these incentives alone. Implementation requires coordination across more than 15 MDAs,” she said.
Using practical examples, Andah explained that a startup seeking funding could simultaneously require tax incentives, while an enterprise seeking to export its products might need regulatory approvals. Investors seeking tax credits could also depend on access to the startup labelling system.
She consequently challenged participating institutions to clearly establish ownership of the incentives assigned to them, strengthen coordination, simplify access procedures and introduce effective monitoring and accountability mechanisms.
The session therefore provided stakeholders with an opportunity to identify implementation gaps and develop practical approaches for ensuring that the incentives contained in the Startup Act are accessible to startups, investors, innovation hubs and other beneficiaries.
The outcome, stakeholders noted, is expected to support a more coordinated implementation of the NSA and strengthen its contribution to Nigeria’s innovation, investment and economic development objectives.
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