Amazon Web Services (AWS) has introduced naira payments in Nigeria, aiming to make its services more accessible. However, local cloud providers, including Okra and Nobus Cloud, see this as a formality rather than a transformative shift in the Nigerian cloud market.
For Fara Ashiru, CEO of Okra and creator of the Nebula, launched in 2024, AWS’s decision to accept naira payments doesn’t address fundamental concerns. “You’re still paying your USD bill converted to naira at the prevailing rate,” Ashiru stated. “It’s the same cost, just presented differently.” Similarly, Stephen Okoye, COO of Nobus Cloud, emphasized that local providers offer a distinct advantage by insulating clients from foreign exchange volatility. “Our pricing is still 30–35% lower than AWS charges,” Okoye highlighted, positioning Nobus Cloud as a more economical choice for Nigerian businesses.
The devaluation of the naira in 2023 forced many Nigerian businesses to reevaluate their reliance on dollar-priced cloud services. This shift led to a surge in demand for local providers offering naira-based billing and more affordable rates. However, price isn’t the only factor driving this trend. Local providers emphasize their commitment to creating solutions tailored to the African market. Ashiru elaborated; “Why host products in countries so far from the customers using them? It’s about building solutions designed for African businesses.”
Data sovereignty has emerged as a crucial differentiator for local providers. Nigeria’s National Cloud Computing Policy (2019) encourages businesses and government agencies to prioritize local cloud services, while the Central Bank of Nigeria mandates commercial banks to host some customer data locally. This regulatory support has bolstered local providers, who are increasingly engaging with government agencies to secure contracts for sensitive data hosting. While specific deals remain confidential, insiders confirm progress in these discussions.
The competition however isn’t limited to AWS and Microsoft Azure as Chinese tech giant Huawei entered Nigeria’s cloud market in December 2024, leveraging its strong presence in the banking sector. Huawei’s services which have already been adopted by institutions like UBA, positions it as a formidable rival. In September 2024, Huawei secured a $3 million deal with UBA to provide 200 petabytes of cloud storage, highlighting its growing influence in the market. This intensifying competition adds pressure on local providers to innovate and maintain their edge.
While AWS’s naira payments may simplify transactions, local providers like Okra and Nobus Cloud are banking on affordability, tailored solutions, and regulatory advantages to maintain their appeal. As Nigeria’s cloud market evolves, the competition between global giants and local players will likely drive further innovation and growth in the sector.
