The launch of Huawei’s local cloud in Lagos two days ago marked a pivotal moment for Nigeria’s digital economy; no doubt.
For a long time, businesses and governments have grappled with increasing demand for secure, efficient, and cost-effective digital solutions. Huawei’s new cloud facility offers an option for transformation.
Huawei’s local cloud in Nigeria is a Tier 3+ data centre with carrier-neutral capabilities and a modern architecture designed to support over 30 cloud services, including computing, network, storage, managed databases, and security.
Strategically located in Lagos, the cloud ensures low latency with speeds of 10ms, offering seamless connectivity across Nigeria and neighbouring countries. Launched with government dignitaries like the Deputy Governor of Lagos, Obafemi Hamzat; Lagos Commissioner for Science and Technology, Tunbosun Alake; other government representatives and private sector delegates present, the infrastructure positions Huawei to deliver robust and efficient cloud solutions tailored to the region’s needs.
But beyond the fanfare of the launch, what does this development mean for the Nigerian ecosystem, and how does Huawei’s cloud offering stand out in a crowded global market?
At the heart of Huawei’s decision to establish a local cloud infrastructure in Nigeria lies the critical issue of trust.
Chris Lu, the company’s CEO in Nigeria, made this clear during the launch, saying, ‘Trust for reliability and speed is the reason Huawei is localising cloud services.’
Huawei aims to eliminate key pain points that have historically deterred Nigerian enterprises from adopting cloud solutions – The global tech company aims to address the twin challenges of data sovereignty and latency.
Data sovereignty, in particular, resonates deeply in Nigeria, as articulated by Lagos State’s Deputy Governor, Dr. Obafemi Hamzat. “Building a cloud in Nigeria is a big deal because of data sovereignty,” he explained.
With localised data storage, businesses can now comply with Nigeria’s regulatory requirements without sacrificing speed or performance.
In the words of Roc Bai, Vice President, Cloud Sub-Saharan Africa, the local cloud delivers “00.15 seconds latency,” a technical achievement which underscores Huawei’s commitment to enhancing user experience.
Huawei has further bolstered its reputation with its adherence to security standards.
The Deputy MD of Huawei Nigeria, Osita Iweze, said the company uses a robust “3CS security manager framework,” integrating cloud service cybersecurity and compliance standards across its services.
This is no small feat in a market where over 90% of businesses harbour concerns about data security according to Iweze. So, by embedding security into the design of its cloud solutions, Huawei provides a foundation of trust critical for mass adoption.
Addressing Nigeria’s infrastructure challenges
Despite Nigeria’s burgeoning tech ecosystem, gaps in ICT infrastructure have hindered growth.
As Hugo Hu, MD of Huawei Cloud Nigeria, aptly noted, “The challenge is more on the insufficient infrastructure of the ICT.”
This challenge is precisely what the company’s local cloud strategy aims to address. The cloud facility is positioned as a milestone, not just for Huawei but for the Nigerian market, and creates a backbone for more robust applications and services.
The impact of this infrastructure upgrade is particularly profound for startups and small businesses.
The Chinese tech company has already launched initiatives like the Huawei Cloud Startup Plan in May 2024, which provides startups with resources valued at over $100,000 for up to three years.
This programme is especially relevant in Lagos, described by Hu as “Nigeria’s Silicon Valley.” This means that the company is lowering entry barriers for startups, and fostering innovation in a market teeming with potential but constrained by limited access to capital.
Supporting skills development
Cloud adoption is only as successful as the workforce that drives it. Recognising this, Huawei has made skills development a cornerstone of its strategy in Nigeria. Programmes like “ICT for Change” and “Seeds for the Future” are aimed at equipping Nigerians with skills in cloud computing, AI, and 5G.
Hu highlighted the company’s goal of training over 5,000 developers annually, who would leverage free resources like Huawei’s online cloud academy and sandbox environments for testing and experimentation.
This emphasis on capacity building addresses the skills gap that Chris Lu described as “the greatest challenge.”
The stakes are high—Nigeria’s youth population offers a significant advantage, but without the right skills, this potential could remain untapped.
In plain terms, a focus on education and training positions Huawei as a service provider and an enabler of Nigeria’s digital transformation.
Huawei’s competitive edge
Affordability is another factor that sets Huawei apart. While cloud services are often seen as a premium offering, Huawei has tailored its pricing to meet the needs of Nigerian businesses. Hu stated: “We are the most cost-effective cloud service provider.”
This claim is backed by Huawei’s strategy of developing proprietary technologies in-house, allowing the company to pass on cost savings to customers. For startups and SMEs, this affordability could be the difference between stagnation and growth.
Meanwhile, Huawei’s partnership model with Nigerian businesses underscores the practical benefits of its cloud solutions.
Dotun Adekunle, CTO of Opay, lauded its reliability and strategic approach, stating, “Huawei has been a difference maker for us.”
Opay, which serves over 40 million customers and processes millions of transactions daily, relies on its infrastructure to ensure zero downtime—a critical feature in Nigeria’s fast-paced financial services sector.
The road ahead
The launch of the local cloud is only the beginning according to the company’s executives.
Over the next five years, Huawei plans to expand its footprint in Nigeria, aiming to serve 1,000 customers, onboard 100 partners, and engage 5,000 developers. These ambitious targets reflect Huawei’s long-term commitment to the Nigerian market.
But perhaps the most compelling aspect of Huawei’s strategy is its alignment with Nigeria’s broader goals. From enhancing data sovereignty to fostering innovation and skills development, Huawei’s local cloud is more than a product—it is a catalyst for change, just as Hamzat puts it.
As Osita Iweze says, “All industries need digital transformation, and the cloud is quite a good method to help enterprises adopt it.”
In conclusion, for businesses and governments alike, the question is no longer whether to adopt cloud solutions, but how quickly they can leverage Huawei’s offering to unlock new opportunities.
