Key points
- IT expert urges Nigeria to reduce reliance on foreign internet routes to cut costs and enhance digital sovereignty.
- Dependence on overseas routing increases exposure to security risks, foreign regulation, and exchange rate pressures.
- Stronger local interconnection and infrastructure investment could boost fintech, cloud services, and digital productivity.
Main story
An Innovation and Technology Policy Adviser, Mr. Jide Awe, has called on Nigeria to urgently prioritise local internet routing in order to reduce operational costs, strengthen digital sovereignty, and drive economic growth.
Awe, Founder of Jidaw.com Ltd., an information and communications technology firm, made the call in an interview with the News Agency of Nigeria (NAN) on Monday in Lagos.
He explained that despite improvements in domestic digital infrastructure, a significant volume of Nigeria’s internet traffic is still routed through overseas exchange points. According to him, this reliance creates unnecessary economic strain and exposes the country to operational and strategic vulnerabilities.
“The issue is not infrastructure alone but ecosystem design. Nigeria needs stronger local-first routing, lower interconnection costs and policies that make keeping traffic local more efficient,” he said.
Awe noted that fragmented networks and high interconnection charges continue to discourage local peering among operators, forcing reliance on established foreign internet routes.
He warned that this structure results in Nigerian data frequently passing through foreign jurisdictions before returning to local platforms, raising concerns around privacy, security, regulatory exposure, and national control.
The issues
Awe identified several structural challenges limiting Nigeria’s internet efficiency, including excessive dependence on foreign transit routes, high interconnection costs, and weak local network integration.
He said these inefficiencies not only increase costs but also expose the digital ecosystem to external regulatory environments, creating risks around data sovereignty and cybersecurity.
He further highlighted the vulnerability of Nigeria’s digital services to international infrastructure disruptions, such as submarine cable failures, which can affect local connectivity even when domestic systems remain functional.
What’s being said
The technology adviser stressed that Nigeria’s continued reliance on foreign routing forces businesses and consumers to bear the financial burden of international transit fees, often paid in foreign currencies and affected by exchange rate volatility.
“In effect, Nigerian businesses and users bear the cost of dependence on external networks,” he said.
He added that strengthening local interconnection would significantly improve service delivery across sectors, including fintech, telecommunications, streaming platforms, e-commerce, and cloud computing.
According to him, fintech systems would benefit from faster payment processing and improved fraud detection, while content providers could reduce reliance on overseas servers, lowering costs and expanding regional reach.
Awe also pointed to ongoing investments in hyperscale and AI-ready data centres in Nigeria as a positive development, but cautioned that infrastructure gaps remain—particularly in energy supply and high-performance computing capacity.
He noted that many advanced systems require stable, high-density power, forcing operators to rely on expensive diesel and gas alternatives, which increases operational costs and sustainability concerns.
He further observed that the limited presence of global cloud providers in-country continues to restrict Nigeria’s ability to fully capture value from its digital economy.
What’s next
Awe urged regulators to update Nigeria’s data protection and digital policy frameworks to reflect emerging realities in artificial intelligence, cloud computing, and cross-border data flows.
He also called for targeted fiscal incentives and policy support to encourage investment in local infrastructure, stronger internet exchange points, and advanced digital ecosystems.
Bottom line
While Nigeria has made progress in digital infrastructure development, experts warn that continued dependence on foreign internet routing undermines cost efficiency, security, and economic growth—making stronger local internet ecosystems a national priority.
