Nairametrics| Tech giants, Microsoft through Microsoft Azure’s Blockchain-as-a-Service has approved the construction of two Data Centers in two South African cities of Johannesburg, and Cape Town, at the expense of Nigeria. This was announced Senior Program Manager, Michael Glaros, at a forum in Lagos. High among the list of reasons why Nigeria was snubbed include poor power generating capacity, harsh business climate, foreign exchange volatility and high level corruption.

With Nigeria not able to grab any of the data centers, the implications for the ICT industry and the Nigerian economy at large is great. Here are some of the most important of those losses.

  • A $30 billion investment: With each of the centers reportedly worth $15 billion, a potential $30 billion in foreign investment was missed. This takes on added significance considering the harsh economic climate. Similarly, international analysts have continually associated any permanent improvement in the economy with increased foreign investment.
  • Over 15,000 jobs: The centers have the capacity of employing 15,00 Nigerians- 5,000 directly and 10,000 indirectly. With the unemployment rate remaining alarmingly high, this opportunity to reduce it was lost.
  • Development of the knowledge economy: Microsoft announced that for the first time, it was going to deliver a complete, intelligent Microsoft Cloud for the first time from Data Centres located in Africa. Sighting these centers in any country will imply significant development of the knowledge economy of the country. Nigeria could have been that country.
  • Diversification of the economy: With so much being said about how Nigeria must extract itself from its dependence on oil, this would have been one of such opportunities to do so. The Executive Vice President, Cloud and Enterprise Group, Microsoft Corp, Scott Guthrie, himself, said the growing demand for cloud services in Africa and their ability to be a catalyst for new economic opportunities. Nigeria lost those opportunities.

To consistently lose investment opportunities to reasons cited earlier must be a pain in the side of the average Nigerian on the street who really feels the pinch. However, the Federal Government seems to be paying only lip service to correcting these issues. Only recently, Samsung also snubbed Nigeria in favor of Egypt and South Africa for the construction of their manufacturing plants. Thus, very soon, we will have to pay export duties to fellow African nations for services that could have been produced in Nigeria.

1 COMMENT

  1. I think it’s bloody good news for Nigeria,which may help this Govt TO sit -up to their responsibility,but what I really wanted to tell my young Nigerian friend,on how to invest in stocks and shares.i made some comments on the govt intervention in the market ON HOW GOVT ACTION AFFECT THE MARKETS.I TRIED TO LINK MY VIEW IN DAYS LATER BUT,I SEARCHED FOR IT, LAST WEEKS .AND I COULD NOT FIND IT EASILY..
    The article is how buffert makes money but,i am not influenced by buffert strategic aim in investing,but I was influenced by peter lynch of fidelity fund.Peter lynch runs a mutual fund,while Mr Buffert runs an assets management company,and I an not influenced NEITHER by George soro strategic aim..
    Each gun makes different sound according to the size of the bullet and the barrel of the gun,SO IS A MONEY MARKET ENTITY.Mr buffert makes long term investment for years and hold it’s shares for a long time,while Mr peter lynch does by making a killing in the stock market,their aims is to maximazies profit for their company and their client.
    How does he do it ?,if I am still correct I read his book about 25 yrs ago,his principle analysis I think is shares prices vs the earning of the profit of the company.in this analysis it will tell you if the company runned by the an efficient management, do they have a sound structured company ? is the company over-bloated.you can also spot if thing do not add up.i.e a fraud.you run their shares prices against their balance sheet.if things add up.
    If you do this way and take the nation economy in overall thinking,,you can makes an educated prediction.you may add some thing in the analysis,which I do not want to includes in this piece,as I tthink this will give you a guiding line in investing share.i also subscribes to some website for information and news, with them I do my analysis and summary HAPPY HUNTING AND HAPPY KILLING BEST LUCK MY YOUNG NIGERIAN FRIEND.BEST WISHES.

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