Tech Growth: Nigeria’s Cloud Market Seeing 26% CAGR Expansion

Nigeria’s cloud computing market is expanding at a 26% compound annual growth rate, according to Abideen Yusuf, general manager for Microsoft Nigeria and Ghana.

“This momentum signals a deeper economic shift,” Yusuf said. “As organizations pursue greater data security and scalability, the demand for data centers continues to rise.”

Data from Mordor Intelligence show the Nigerian cloud market’s value is projected to climb to $3.28 billion by 2030 from an estimated $1.03 billion this year.

Powered by a youthful population, expanding internet access, and a vibrant entrepreneurial ecosystem, Nigeria is emerging as a digital leader in Africa.

The country’s nearly 240 million people, with a median age of 18, are driving a data explosion through mobile-first internet habits, gaming, video streaming, and remote work.

That’s fueling demand for faster, more resilient digital infrastructure as companies ditch on-premises systems for cloud and hybrid models, spurring a wave of data centers built closer to users — designed to handle AI workloads and link local computing power to global networks.

Nigeria’s new wave of digital boom will benefit a handful of companies at the forefront of the AI and cloud computing push in the country. Investible firms identified by MoneyCentral include MTN Nigeria, Airtel Africa and United Bank for Africa (UBA), which trade on Nigeria’s stock market.

MTN Nigeria has launched the first phase of its US$240 million artificial intelligence (AI), Tier 3 Data Centre as part of a strategy to expand capacity and meet the growing demand for its services.

MTN is a leader in Nigeria in terms of high quality capital expenditure.

The telecom giant spent a total of N565.70 billion ($376 million) in capital expenditure (CapEx) in the first six months of 2025, which is 288.40 percent higher than 2024’s total.

The largest Nigerian telecommunications provider reported a profit after tax (PAT) of N414.9 billion in the first six months (H1) of 2025, marking a strong recovery from the loss after tax of N519.1 billion recorded in the prior H1 2024 period.

MTN Nigeria is a $6.59 billion (N9.89 trillion), Lagos Nigeria (NGX) listed company that is a subsidiary of Africa’s largest telecommunications firm, MTN Group.

MTN trades at 18.5 times earnings, cheap for a fast growing firm.

United Bank for Africa (UBA) plc is currently the undisputed leader among Nigerian Banks in AI adoption, given its comprehensive integration of AI across retail and enterprise banking services.

UBA is a NGX listed Nigerian lender with a market capitalisation of $1.14 billion (N1.72 trillion).

UBA’s gross earnings surged 17.28% to N1.608 trillion in June 2025, from N1.371 trillion in June 2024.

Profit after tax rose by 6.06% to close the Half Year 2025 period at N335.53 billion.

UBA trades at a price-to-book ratio of 0.42, cheap compared to Emerging Market peers.

Airtel Africa is a dual Lagos and London listed telecommunications firm, with a market capitalization of $5.62 billion (N8.43 trillion).

Airtel Nigeria has unveiled plans to invest US$120 million in the construction of a 38 MW hyperscale data centre in Eko Atlantic City, Lagos, scheduled to go live in the first quarter of 2026.

The operator with over 81 million subscribers says the facility is designed to cater to hyperscale cloud providers, large enterprises and small businesses.

Airtel Africa trades at a Price to Earnings ratio of 28.51 times.

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