Why Nigeria must end dependence on foreign internet routing – Expert

Technology policy adviser Jide Awe has called on Nigeria to redesign its internet ecosystem around local routing, warning that the current practice of sending domestic traffic through foreign exchange points is quietly draining the economy and exposing the country to risks it can largely avoid.

Awe made the remarks in an interview with the News Agency of Nigeria, NAN, in Lagos on Monday, arguing that the problem goes beyond physical infrastructure and cuts to the heart of how Nigeria’s digital economy is structured and governed.

Despite years of investment in local infrastructure, a significant portion of internet traffic between Nigerian users still travels through overseas networks before returning to serve local destinations, creating what Awe described as avoidable economic, operational and strategic vulnerabilities.

What Jide Awe is saying 

Awe said the solution requires a deliberate policy push, not just more cables and data centres.

• “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.

He noted that routing domestic transactions through foreign jurisdictions exposes Nigerian data to external legal and regulatory environments, raising serious concerns around privacy, security and national control.

• “In effect, Nigerian businesses and users bear the cost of dependence on external networks,” he said, pointing out that internet providers pay international transit charges in foreign currencies, making connectivity costs directly vulnerable to exchange rate swings.

He also warned that international route failures such as submarine cable disruptions could knock out local digital services even when infrastructure within Lagos remained fully operational.

• “This demonstrates that digital infrastructure is not only about where data is stored, but also who controls the routes through which it travels,” he added.

More insights 

Awe said the economic case for stronger local interconnection is straightforward and touches nearly every corner of the digital economy.

• Fintech platforms would process payments faster, improve fraud detection and deliver more reliable services during peak transaction periods if traffic stayed within Nigeria rather than bouncing through overseas networks.
• Streaming and content platforms would reduce dependence on foreign servers, lowering costs for consumers while opening up distribution opportunities for Nigerian content across West Africa.
• Local cloud providers, e-commerce platforms and telecoms operators would benefit from reduced international bandwidth bills, better performance and stronger security.

On the infrastructure side, Awe acknowledged that Nigeria has begun commissioning its first wave of hyperscale, AI-ready data centres, which he described as an encouraging sign. However, he cautioned that the country still faces serious gaps in meeting the computing and energy demands that advanced AI and cloud services require.

• AI systems need continuous, high-density power supplies, forcing many operators to depend on expensive gas and diesel backup systems just to maintain reliability.
• Those energy costs raise both sustainability concerns and operational expenses for organisations trying to build large-scale AI infrastructure.
• Many global cloud providers have also yet to establish full operations locally, limiting how much value Nigeria can capture from the broader digital services economy.

What you should know 

In July 2022, Nairametrics reported that Global technology companies including Meta, Microsoft, and Google began routing a significant portion of their internet traffic locally through the Internet Exchange Point of Nigeria (IXPN), marking a major milestone in the country’s efforts to strengthen domestic internet infrastructure and reduce reliance on international traffic routes.

The development came as IXPN’s membership surpassed 100 organizations, comprising Internet Service Providers (ISPs), Mobile Network Operators (MNOs), financial institutions, educational institutions, content providers, and other IP-based organizations.

By keeping locally generated internet traffic within Nigeria, IXPN helps reduce dependence on costly international links, improves network performance, enhances user experience, and lowers the cost of data transmission for participating networks.

Technology policy adviser Jide Awe has called on Nigeria to redesign its internet ecosystem around local routing, warning that the current practice of sending domestic traffic through foreign exchange points is quietly draining the economy and exposing the country to risks it can largely avoid.

Awe made the remarks in an interview with the News Agency of Nigeria, NAN, in Lagos on Monday, arguing that the problem goes beyond physical infrastructure and cuts to the heart of how Nigeria’s digital economy is structured and governed.

Despite years of investment in local infrastructure, a significant portion of internet traffic between Nigerian users still travels through overseas networks before returning to serve local destinations, creating what Awe described as avoidable economic, operational and strategic vulnerabilities.

What Jide Awe is saying 

Awe said the solution requires a deliberate policy push, not just more cables and data centres.

• “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.

He noted that routing domestic transactions through foreign jurisdictions exposes Nigerian data to external legal and regulatory environments, raising serious concerns around privacy, security and national control.

• “In effect, Nigerian businesses and users bear the cost of dependence on external networks,” he said, pointing out that internet providers pay international transit charges in foreign currencies, making connectivity costs directly vulnerable to exchange rate swings.

He also warned that international route failures such as submarine cable disruptions could knock out local digital services even when infrastructure within Lagos remained fully operational.

• “This demonstrates that digital infrastructure is not only about where data is stored, but also who controls the routes through which it travels,” he added.

More insights 

Awe said the economic case for stronger local interconnection is straightforward and touches nearly every corner of the digital economy.

• Fintech platforms would process payments faster, improve fraud detection and deliver more reliable services during peak transaction periods if traffic stayed within Nigeria rather than bouncing through overseas networks.
• Streaming and content platforms would reduce dependence on foreign servers, lowering costs for consumers while opening up distribution opportunities for Nigerian content across West Africa.
• Local cloud providers, e-commerce platforms and telecoms operators would benefit from reduced international bandwidth bills, better performance and stronger security.

On the infrastructure side, Awe acknowledged that Nigeria has begun commissioning its first wave of hyperscale, AI-ready data centres, which he described as an encouraging sign. However, he cautioned that the country still faces serious gaps in meeting the computing and energy demands that advanced AI and cloud services require.

• AI systems need continuous, high-density power supplies, forcing many operators to depend on expensive gas and diesel backup systems just to maintain reliability.
• Those energy costs raise both sustainability concerns and operational expenses for organisations trying to build large-scale AI infrastructure.
• Many global cloud providers have also yet to establish full operations locally, limiting how much value Nigeria can capture from the broader digital services economy.

What you should know 

In July 2022, Nairametrics reported that Global technology companies including Meta, Microsoft, and Google began routing a significant portion of their internet traffic locally through the Internet Exchange Point of Nigeria (IXPN), marking a major milestone in the country’s efforts to strengthen domestic internet infrastructure and reduce reliance on international traffic routes.

The development came as IXPN’s membership surpassed 100 organizations, comprising Internet Service Providers (ISPs), Mobile Network Operators (MNOs), financial institutions, educational institutions, content providers, and other IP-based organizations.

By keeping locally generated internet traffic within Nigeria, IXPN helps reduce dependence on costly international links, improves network performance, enhances user experience, and lowers the cost of data transmission for participating networks.