Amazon Web Services (AWS), the global leader in cloud computing, has announced that it will now accept payments in Naira, alongside seven other local currencies for its European customers. This decision is expected to have a significant impact on Nigerian businesses, many of which host their services in AWS’s European region due to geographical proximity.
The move is particularly beneficial for Nigerian companies facing rising cloud costs due to the naira’s devaluation and other macroeconomic pressures. Since cloud services are traditionally priced in US dollars, these costs have often more than doubled for local businesses since 2023. AWS’s acceptance of naira payments will reduce foreign exchange costs and eliminate payment challenges rising from local currency restrictions.
In a statement released on Monday, AWS emphasized its commitment to simplifying payments for customers in regions where local regulations limit foreign currency access. “With payments in their local currencies, customers can avoid foreign exchange costs associated with making foreign currency payments. This also removes payment friction for customers in countries where local regulations put limits on the foreign currency amount a customer can access.”
This development is expected to reshape the competitive landscape in Nigeria’s cloud services sector. Homegrown cloud providers like Nobus, Layer3, and Okra’s Nebula, which launched in 2024, have positioned themselves as affordable, locally relevant alternatives to AWS and Microsoft Azure.
Local providers gained traction by offering services priced in naira, addressing the financial strain caused by FX liquidity issues and the volatility of USD-denominated pricing, which could push costs up by 200–300% within weeks. Many of these companies also engaged with government agencies to highlight their potential role in reducing Nigeria’s dependence on USD-based services while strengthening the local economy.
AWS’s decision follows the launch of its AWS Local Zones facility in Lagos in early 2023, designed to enhance performance and reduce inactivity for Nigerian businesses. By pairing this infrastructure investment with a naira payment option, AWS aims to solidify its presence in the Nigerian market.
The introduction of local currency payments is a strategic response to the rising appeal of local providers, which offer not only cost savings but also a sense of alignment with Nigeria’s economic environment.
While AWS’s acceptance of naira payments lowers financial barriers for Nigerian businesses, the competition remains fierce. Local providers continue to emphasize their relevance, not just in pricing but also in addressing unique challenges faced by Nigerian companies.
AWS’s latest move is a step toward maintaining its dominance, but as there is a notable increase in the prioritization of economic resilience and local solutions by businesses, the Nigerian cloud market may witness a more balanced playing field.
