Cloud Computing Adoption Could Generate N30.2 Trillion For Nigeria

A recent study conducted by Amazon Web Services (AWS) has illuminated the vast potential of cloud computing adoption in Nigeria, suggesting that it could generate an additional economic value of N30.2 trillion by the year 2033.

This eye-opening revelation further heightens the the transformative power of cloud technology and its ability to drive economic growth in the country.

Amrote Abdella, the AWS General Manager for Sub-Saharan Africa (SSA), presented these findings, highlighting that the study’s scope spanned from 2023 to 2033, offering a comprehensive view of the coming decade’s potential.

Commissioned by AWS, the study sought to quantify the correlation between public cloud computing adoption, national productivity, and economic expansion in Nigeria, shedding light on the significant advantages of embracing cloud technology in Nigeria and the broader SSA region.

The N30.2 trillion economic yield forecasted represents approximately 0.36% of Nigeria’s cumulative Gross Domestic Product (GDP).

This staggering potential can be realized simply by accelerating the adoption of cloud technologies across various sectors of the economy.

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Cloud adoption offers numerous benefits to businesses and organizations. It enhances the scalability of internet-based database capabilities while simultaneously reducing costs and risks.

By utilizing remote servers hosted on the internet to store, manage, and process critical data, cloud computing provides businesses with unprecedented flexibility and efficiency.

Amrote Abdella emphasized the substantial growth opportunities through cloud adoption, suggesting that by increasing the current average cloud penetration rates, the region could unlock even more economic value.

She underscored AWS’s commitment to supporting customers and partners in Nigeria on their cloud journey and its belief that cloud technology will drive innovation, productivity, and business scalability over the next decade.

The study’s findings clearly indicate that the economic impact of cloud computing is closely tied to the scale of its adoption. Greater adoption leads to proportionally larger productivity gains and economic benefits.

However, the study also revealed that in 2021, only 27% of organizations in Nigeria had embraced cloud computing—a significantly lower rate compared to the adoption rates of 49% in Western Europe and North America. This signals a substantial opportunity for Nigeria to increase its cloud adoption rates and, consequently, realize significant advantages.

Four key advantages of cloud computing were highlighted: business efficiency and effectiveness enhancement, process optimization, improved outcomes, and access to a wide array of services that enable businesses to leverage advanced technologies.

Moreover, cloud computing promotes environmental sustainability by reducing carbon emissions per unit of data transmitted.