Nigerian Tech Startups Challenging Cloud Giants: Affordable Alternatives Emerge
The dominance of cloud computing giants like Amazon Web Services (AWS) and Google Cloud is being challenged by Nigerian entrepreneurs who are building more affordable and locally-focused alternatives. This shift is driven by a combination of factors, including the high cost of using foreign-based cloud services and the fluctuating exchange rate, making these platforms financially unsustainable for businesses operating in Nigeria.
Nebula and the Rise of Local Cloud Solutions
Fara Ashiru, founder of fintech platform Okra, faced significant financial burdens when using AWS. The platform earned revenue in Nigerian naira but paid AWS in US dollars. As the naira depreciated by approximately 70% against the dollar between 2020 and 2024, AWS bills skyrocketed. “The bills were staggering,” Ashiru explained, highlighting the unsustainable nature of this model, given the country’s economic challenges. To address this, Ashiru established cloud infrastructure using servers in data centers within Nigeria and South Africa in 2024. This operation was later spun off into a new company named Nebula. Nebula provides cloud services that allow anyone in Nigeria to host their websites, applications, or workflows, and importantly, to pay in Nigerian naira. Nebula represents a growing trend in African tech, where entrepreneurs are responding to local needs by creating solutions designed to address the specific economic conditions of the region.
The article highlights how a Nigerian entrepreneur has successfully built a more affordable alternative to AWS and Google Cloud, which may encourage other local businesses to adopt these types of services.
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