By Milcah Tanimu
Nigeria’s ongoing forex crisis is jeopardizing multimillion-dollar data centre investments, with industry operators facing increasing challenges due to Naira depreciation. The instability has significantly affected the return on investments, forcing operators to rely on foreign funding as Nigerian banks shy away from long-term commitments.
The CEO of Digital Reality Nigeria, Engr. Ikechukwu Nnamani, highlighted that approximately 90% of the investment for data centres is in foreign currency. The fluctuating exchange rate undermines profitability, with the Naira’s volatility turning projected returns into losses. Companies like MDXi and MainOne have reported skyrocketing operational costs due to currency fluctuations, impacting their bottom line.
Despite ongoing efforts to expand Nigeria’s data centre capacity, the forex crisis remains a significant obstacle, threatening the completion of critical infrastructure projects necessary for the nation’s digital economy goals.
