Monday, May 31, 2021

Cloudflex boss to CBN, NCC, NITDA: Include local hosting deals in licensing - ITREALMS

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The Managing Director and Chief Executive Officer of Cloudflex, Mr. Aderemi Adejumoh has tasked all the federal government regulatory agencies in the country to include local hosting deals in their licensing requirements, reports 
ITREALMS.
Mr. Aderemi Adejumoh at NITRA Forum 2021

Speaking at the 2021 Technology Forum organized by the Nigeria Information Technology Reporters Association (NITRA) held in Lagos at the weekend with the theme “Achieving 30% growth in Local Cloud Hosting by 2024” Adejumoh said that inclusion of this clause in regulatory and licensing requirements would give unprecedented boost to the cloud hosting industry in the country.
He listed some agencies like the Central Bank of Nigeria (CBN), National Insurance Commission, (NAICOM), National Pension Commission (PenCOM), Nigerian Communications Commission (NCC) and National Information Technology Development Agency (NITDA), stressing that they should have as part of their licensing agreement a commitment from the licensee that they will be hosted in Nigeria.

Currently, Adejumoh told ITREALMS at the forum that “It is estimated that the Nigeria Cloud hosting market is worth between $100m - $450m. about N50bn – N200bn.”

Over 95 per cent of that, he said, is with the Hyperscalers, namely the Amazon Web Services (AWS), Microsoft’s Azure and Google Cloud Platform to name a few and outside of Nigeria.

The cloud market, he said, was worth $1.7bn by 2020 and growing fast, whereas, the South Africa, Kenya and Nigeria are the major cloud hubs in Africa.

Adejumoh equally gave some tripod definition of data to include that “Data Residency – where the business defines where its data is located; Data Sovereignty – country makes law where the data resides; and data Localisation – legal requirement that the data is stored within the country’s borders.”

He pointed out that with 95 per cent of Nigeria’s data being abroad, the countrys’ regulators have no control or authority over the data.

Hence, he called on them including NCC, CBN, NITDA among others to find a way of including a commitment clause for investors in Nigeria to have their data domicile in the country thereby boosting local employment and local cloud industry and putting a stop to capital flight.

Adejumoh, further noted that with the Patroit Act, Cloud Act and General Data Protection Regulation (GDPR) that western governments have more control and authority over Nigeria’s data that the Nigerian government and regulatory authorities.

Encouraging local hosting will, Cloudflex chief executive said, grow Nigeria’s economy, empower Nigerian youth which accounts for 60 per cent of the population, increase job creation; encourage the advancement in technology, increase local investment as well as buildout of technology infrastructure growth.

“A 30% increase in local hosting will increase the revenue by $30m - $150m, about N15bn and N75bn,” he declared.

Remmy Nweke/DoP

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