NCC says development of Nigeria data centres key to reaping $1.2 trillion AfCFTA potential 

ARINZE NWAFOR

The Nigerian Communications Commission (NCC) says the country needs to develop data centres as they provide businesses with a platform to reap from the estimated $1.2 trillion potential benefit within the African Continental Free Trade Area (AfCFTA).

The NCC Executive Vice Chairman (EVC), Umar Danbatta shared his insights into data centre development at the fourth edition of the Telecoms Sector Sustainability Forum (TSSF) held in Lagos on Thursday.

The theme of the forum is Mainstreaming Data Centres in the Nigerian Digital Economy and the NCC Head of Tariff Administration, Sunday Atu, delivered Danbatta’s address.

Danbatta said the “opportunities to be unlocked from the estimated $1.2 trillion latent treasure within the AfCFTA continental block through its 1.3 billion people” are available to both private and public entities.

Danbatta said the NCC recognises the place of and impact of broadband and interconnectivity in national development.

He cited the investments of Google and Meta into infrastructure development that traverse the African continent as examples of mainstreaming of data centres and its benefits.

“Tech giants, like Google with its Equiano subsea fibre cable spanning 15,000 km from Portugal to South Africa and strategic landing points in Nigeria and Namibia, are expected to increase connectivity more than five-fold within Nigeria while creating an expected 1.6 million jobs.

“Meta, the parent company of Facebook, is equally on the threshold of launching its subsea cable called 2Africa in 2024 to connect 16 African countries at an estimated cost of $1 billion.

Danbatta pointed to how Meta targets that its 2Africa subsea cable will generate close to 36 billion dollars of economic output within two to three years of operation as a precursor to the debate around digital sovereignty.

The NCC EVC said, “While these (projects from data multinationals), no doubt, portend significant socio-economic impacts for Nigeria, they bring to the fore the debate around digital sovereignty and the need for national policy and regulatory frameworks to further localise traffic and data.

Danbatta, however, said that the Nigerian government has taken laudable steps to encourage and support data centre services in the country in its drive to ensure data sovereignty.

“This is encapsulated in the National Digital Economy and Strategy pillar No. 3 on Solid Infrastructure, which states that the government will promote the development and deployment of robust and scaled data centres,” Danbatta said.

Danbatta said the Nigerian government is taking steps toward ensuring the country’s data sovereignty, including providing a secure and reliable environment for services by putting a national policy and regulatory framework in place.

Danbatta said the NCC also works towards data infrastructure sharing and expansion strategies.

“The NCC has long recognised the imperatives around the sharing of critical resources within the telecoms industry particularly in relation to recent engagements of regional roaming within the ECOWAS block,” the Commission’s EVC said.

“The commission has concluded its framework and further facilitated the test running of national roaming and active infrastructure sharing to further galvanise the efficient rollout through well-coordinated network optimization and expansion strategies,” Danbatta added.

While talking about the impact of broadband and interconnectivity in national development, Danbatta said the NCC has harmonised right-of-way charges and allocated more spectrum to existing mobile and 5G technologies in Nigeria.

The NCC EVC said the commission has taken steps that have led to “an active functioning market that has brought about competition and a good quality market with appropriate regulatory measures.”

Further, Danbatta said that the commission has carried out an extensive assessment of the broadband value chain, including the analysis of market features, such as ecosystem mapping, pricing, technology, regulatory planning and competition.

“These efforts (at broadband value chain assessment) have helped reduce prices in the mobile sector,” the EVC said.

Moreover, Danbatta said the conclusion of the framework and licensing of mobile virtual network operators represent another big part of the digital industry after the launch of the GSM around 2001.

He said the virtual network framework is expected to engender greater expansion, more reach, and additional choice for the Nigerian consumer.

“(The effort) has led to an increased rollout of fibre infrastructure across metropolitan areas in the country required to serve the surge in users,” Danbatta said.

In addition, Danbatta said the mainstreaming of data centres requires the collective effort of Nigerians to guarantee national digital sovereignty.

He told the players in the digital sector that their data centres need to prioritize content reflecting Nigerian cultural norms.

Danbatta said the commission will support each licensee while ensuring strict data protection regulations adherence.

The fourth edition of the TSSF was convened by Bukola Olanrewaju, the managing editor of Business Remarks.

Image caption: Sunday Atu represents the NCC Executive Vice Chairman, Umar Danbatta, at the fourth Telecoms Sector Sustainability Forum held in Lagos