Nigeria’s estimated $40 million in annual savings from keeping internet traffic within the country highlights the economic value of local connectivity as the expansion of artificial intelligence (AI) increases demand for stronger links between telecommunications networks, data centres and digital platforms.
Despite having at least eight international submarine cables, Nigeria needs stronger domestic interconnection to process more data locally, retain a greater share of digital economic value and improve the resilience of its internet infrastructure, Funke Opeke, founder and former chief executive officer of MainOne, has said.
Speaking at the Women in Internet Infrastructure Forum organised by the Internet Exchange Point of Nigeria (IXPN) to mark its 20th anniversary, Opeke called for sustained investment in digital infrastructure and stronger local connections to enable Nigeria to maximise the economic benefits of AI.
She said the country’s ability to benefit from the technology would depend not only on international connectivity but also on how effectively telecommunications operators, data centres and digital platforms exchange data within the country.
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The issue is becoming more important as AI adoption increases the demand for computing capacity, data processing and reliable connectivity. Without stronger domestic links, Nigeria could struggle to capture the full economic value of its growing digital activity.
Established in 2006, IXPN enables internet service providers and other network operators to exchange internet traffic locally rather than route it through international networks. This reduces reliance on costly international transit, improves network performance and strengthens the resilience of internet services.
Ezinne Ekeghe, acting company secretary at IXPN, said the organisation’s contribution to Nigeria’s internet ecosystem had grown substantially over the past two decades.
Citing a 2020 Internet Society report, Ekeghe said IXPN’s peak traffic had increased from 300 megabits per second (Mbps) to 125 gigabits per second (Gbps), with estimated annual cost savings of about $40 million.
The figures illustrate the economic importance of local internet exchange infrastructure, particularly as businesses, financial services and digital platforms become increasingly dependent on reliable data connections.
However, the availability of international submarine cables does not automatically translate into efficient domestic connectivity. The economic benefits depend partly on how effectively traffic moves between networks and whether the infrastructure needed to support local data processing is available.
Nigeria’s international cables provide access to global internet capacity, but stronger connections among domestic networks and data centres are needed to support more efficient data exchange within the country.
Opeke recalled that when she returned to Nigeria in 2005, limited infrastructure and expensive connectivity constrained the country’s digital development. MainOne subsequently invested $240 million in infrastructure to improve connectivity across Nigeria and West Africa.
She said Nigeria could strengthen its position as a regional internet hub by expanding local interconnection, improving digital resilience and ensuring that more data could be processed within the country.
For Nigerian businesses, stronger domestic connectivity could support more reliable digital services and improve the infrastructure available to companies developing or deploying AI applications. It could also help reduce avoidable costs associated with routing domestic traffic through international networks.
The forum, themed “Breaking the Barriers, Building the Future,” also focused on the people needed to operate and expand the infrastructure supporting the digital economy.
Zubaida Rasheed, an IXPN board member, urged more women to pursue careers in network engineering, internet peering, data centre operations, cloud computing and cybersecurity.
She said innovations in software, financial technology and AI depended on reliable connectivity, data centres, cloud infrastructure and skilled professionals.
“The next chapter will be shaped not only by the networks we build, but by who gets the opportunity to build them,” Ekeghe said.
As part of its 20th-anniversary activities, IXPN introduced the IXPN@20 Certification Scholarship, offering 10 professional training opportunities to students and members of the National Youth Service Corps (NYSC).
The initiative is intended to strengthen technical skills and expand access to careers in the infrastructure underpinning Nigeria’s digital economy.
The combination of infrastructure investment, stronger domestic interconnection and technical talent will be important as Nigeria seeks to expand its digital economy and capture more value from emerging technologies.
While international cables connect the country to global networks, the ability to exchange and process data efficiently within Nigeria will help determine how effectively local businesses and consumers benefit from the next phase of digital growth.
Royal Ibeh is a senior journalist with years of experience reporting on Nigeria’s technology and health sectors. She currently covers the Technology and Health beats for BusinessDay newspaper, where she writes in-depth stories on digital innovation, telecom infrastructure, healthcare systems, and public health policies.
