According to reporting by **Vanguard**, Nigeria is losing an estimated N60 billion annually due to the widespread preference for foreign domain registrations and web hosting services. This massive capital flight is being driven by local businesses and government agencies that opt for international service providers over the domestic “.ng” domain.
The Nigeria Internet Registration Association (NiRA) has expressed concern over this trend, noting that it not only drains the economy but also compromises data sovereignty. Experts argue that if even half of this expenditure were redirected locally, it would create thousands of tech jobs and significantly improve the country’s cybersecurity resilience.
**The Guardian** reported on the calls for policy intervention, noting that “stakeholders are pushing for a ‘Local First’ web policy to stem the tide of digital capital flight.” Meanwhile, **ThisDay** quoted a tech analyst who remarked, “Building Nigeria’s digital assets on foreign soil is like paying rent to a landlord who can lock you out of your own business.”
**Echotitbits take:** This is a classic case of “digital neocolonialism.” Until local hosting providers can guarantee 99.9% uptime despite the country’s power challenges, businesses will continue to seek the reliability of foreign servers regardless of the cost to the naira.
Source: The Guardian – https://guardian.ng/technology/nigeria-loses-n60bn-annually-to-foreign-data-hosting-firms/, April 22, 2026
Photo credit: The Guardian
