Nigeria Loses $850m Yearly to Foreign Cloud Providers – Kasi Cloud

Nigeria Losing $850m Annually to Foreign Cloud Providers – Kasi Cloud

Tech firm says dependence on overseas data infrastructure is increasing capital flight and foreign exchange pressure

Nigerian technology company Kasi Cloud has stated that the country loses an estimated $850 million every year to foreign cloud infrastructure providers as businesses continue to host critical digital operations outside Nigeria.

The disclosure was made during the commissioning of the company’s new Hyperscale AI-Ready Data Centre, known as LOS1, located in Lekki, Lagos.
According to the company, many Nigerian banks, fintech firms, telecom operators, multinational companies, and government institutions still rely heavily on cloud services and data centres based in Europe and North America.

Kasi Cloud said this growing dependence on foreign infrastructure contributes to capital flight, places additional pressure on foreign exchange demand, and exposes sensitive national data to foreign legal systems.

Founder and Chief Executive Officer of Kasi Cloud, Johnson Agogbua, described the new facility as part of efforts to strengthen local cloud infrastructure and support Africa’s growing artificial intelligence economy.

Speaking during the commissioning ceremony, Agogbua said Africa must begin building and controlling its own digital infrastructure to compete effectively in the global technology space.
He explained that the rise of artificial intelligence is increasing the need for local computing power capable of supporting innovation, enterprise operations, and digital research across the continent.

Government officials highlight economic benefits
Nigeria’s Finance Minister, Taiwo Oyedele, who attended the event, described the project as an important development for the country’s digital economy.

According to him, local cloud and AI infrastructure could improve productivity, support innovation, and create opportunities across sectors such as healthcare, agriculture, education, and financial services.
Lagos State Governor Babajide Sanwo-Olu also noted that the project had already created employment opportunities for engineers, technicians, contractors, and other support workers during the construction phase.

The Lekki-based facility is strategically positioned near major subsea internet cable systems, including Equiano and 2Africa, which are expected to improve internet speed, connectivity, and lower latency for businesses operating in Nigeria.

Kasi Cloud said the centre was designed to support high-performance artificial intelligence workloads and future expansion as demand for digital services continues to rise across Africa.
Industry experts at the event also suggested that stronger local infrastructure could encourage more foreign investment from global cloud providers, software companies, and technology investors interested in the African market.

About the Author

Adesokan Oluwasegun is a journalist and blogger with four years of experience, specializing in politics, business and economy, metro reporting and editorial writing that provides analysis and opinion on key issues .