Businesses are considering local expansion despite the many obstacles the Nigerian economy faces. This information was found in the Equinix 2022 Global Tech Trends Survey, which questioned 100 company leaders in Nigeria about the opportunities and difficulties their organizations are currently facing as well as their future goals.
The survey results from Equinix show that there are numerous chances for Nigerian companies to successfully enter new markets and attract new clients.
In the following 12 months, 54% of respondents to a study conducted in Nigeria said they planned to expand in an existing country, 34% in a new region, and 33% in a new country.
It was noted that 93% of Nigerian IT leaders stated that improving customer experience is a top priority.
When it came to global growth, however, firms noted a number of potentially restricting constraints, including issues and difficulties with the supply chain, cyber security, and personnel retention and recruiting.
The difficulties mentioned include, among others, weaknesses in the supply chain, cyber security, employee retention, and tools for business expansion. Even though Nigeria has one of the youngest populations and workforces in the world, 58% of IT decision makers there see a lack of workers with IT skills as one of the biggest threats to their company. This is according to Equinix, which the company acquired earlier this year.
The poll revealed that the retention of present talent, wages and remuneration, shifting expectations for working methods, and applicants seeking for jobs with the inappropriate skill sets are among the top worries for businesses in Nigeria (38 per cent).
Additionally, according to Equinix, people with expertise in AI/machine learning, data analysis, cloud computing specialists, data protection, security software development, IT technicians, and security analysis are the most sought-after tech workers in Nigeria.
Speaking of supply chain concerns, the survey found that 50% of respondents identified the worldwide microprocessor scarcity as a threat to their firms, while 55% of respondents claimed that their companies were afflicted by global supply chain problems and shortages.
According to Equinix, Nigerians are extremely concerned about cyber security. It states that it is essential for corporate operations, especially in light of current global risks and rising volatility, to make sure that expansions are supported by durable digital models.
“As part of their digital-first strategies, 85 per cent of respondents in Nigeria confirmed a key priority is improving cybersecurity. 88 per cent said complying with local market data regulations is critical, while 85 per cent highlighted the need to futureproof their businesses. According to IT specialists in Nigeria, the most feared threats were cyber attacks (73 per cent), security breaches and data leaks (68 per cent),” it stated.
Including business-critical apps and security operations, 77% of IT leaders in Nigeria indicated they intend to migrate more business processes to the cloud in order to expand their company.
According to Equinix, 36 percent of respondents in Nigeria favored hybrid cloud solutions, while 18 percent still used just one cloud provider and 2 percent didn’t use the cloud at all.
It noted that 40% of Nigerian respondents stated they intended to use virtual deployment through the cloud to support aspirations for global expansion, with over a quarter (26%)—21% of Nigeria’s IT decision-makers—doing so utilizing a bare metal solution.
To support the anticipated rise in digital deployments, 47% of respondents globally (and 46% in Nigeria) said they expect to spend more on carrier-neutral colocation solutions. Even more respondents (65% in Nigeria and 59% globally) said they intend to spend more on interconnection services as they move forward with their digital transformation and increase resilience.
Businesses lamented COVID-19’s effects as well. The pandemic is still having a big impact on firms’ digital operations, according to Equinix. It was emphasized that 64% of IT leaders in Nigeria claimed the COVID-19 situation had accelerated the digital transformation of their organizations.
Indeed, more than half (64%) say their IT spending has gone up as a direct result of legacy issues, which sheds light on the almost universally understood need for a solid digital foundation that can quickly adapt to changing business requirements.
Funke Opeke, managing director of MainOne, an Equinix company, commented, “The acceleration in digital transformation in Nigeria reinforces the need for businesses to have access to single points to interconnect locally. Increased speed of connectivity, increased flexibility of connectivity, and reduced cost of connectivity were identified by IT decision-makers in Nigeria as the most beneficial aspects of interconnection. MainOne provides a rich interconnection ecosystem that allows customers connect to each other multiple telecoms networks, and Cloud, Payment and Content Providers in a single location.’’