Nigerian startups are about to get a much-needed break from the relentless pressure of foreign exchange fluctuations. A new sovereign cloud initiative is being launched to help local tech firms reduce their reliance on foreign digital infrastructure, which is almost always priced in dollars. This move aims to protect the ecosystem from the rising costs of hosting data abroad.
The project is a collaborative effort between Galaxy Backbone Limited and the Office for Nigerian Digital Innovation, an arm of the National Information Technology Development Agency (NITDA). The initiative will provide subsidized cloud services specifically for startups within the iHatch program. This allows these growing companies to host their data locally and, more importantly, pay for these services in Naira.
This intervention comes at a critical time. Many Nigerian tech companies have been struggling with high operational costs following the devaluation of the currency, which has made imported services like cloud hosting and software subscriptions significantly more expensive. By moving to a local platform, these businesses can finally stabilize their overhead.
Under this new arrangement, startups will be integrated into the Galaxy Cloud Platform. This infrastructure is backed by top-tier, Uptime-certified data centers and a nationwide fiber network, ensuring that local hosting does not mean a compromise on quality or security. NITDA Director-General Kashifu Abdullahi noted that this partnership is a key part of the government’s strategy to build a startup ecosystem that can compete globally while staying rooted in local infrastructure.
Galaxy Backbone Managing Director Ibrahim Adeyanju explained that the program is designed to offer enterprise-grade services at subsidized rates. Beyond just saving money, the initiative supports Nigeria’s digital sovereignty by keeping domestic data within the country’s borders. The support is structured around the specific growth stages of a startup, offering cloud credits that can be used over a 12-month period as they build and scale their products.
One of the standout features of the program is the transition to Naira-denominated billing once the initial credits are exhausted. This specific structure is intended to shield entrepreneurs from the sudden currency swings that have historically eaten into the profit margins of the Nigerian tech sector. To ensure a smooth transition, a dedicated success team and automated tools will be deployed to help startups manage their resources effectively.
The iHatch program itself has already made significant strides, training over 160 startups through dozens of hub partners across the country. This latest push to strengthen indigenous digital infrastructure reflects a growing trend across Africa to prioritize local cloud capacity and retain control over the continent’s digital future.
