A recent study conducted by Amazon Web Services (AWS) has revealed that the adoption of cloud computing in Nigeria could generate an additional economic value of N30.2 trillion by 2033.
Amrote Abdella, AWS General Manager for Sub-Saharan Africa (SSA), stated this saying that the study assessed the potential of cloud adoption in the Nigerian market for the coming decade, spanning from 2023 to 2033.
The study, commissioned by AWS, aimed to quantify the relationship between public cloud computing adoption, national productivity, and economic growth in Nigeria, highlighting the significant potential of cloud adoption for both Nigeria and the broader SSA region.
According to her, this N30.2 trillion potential economic yield accounts for approximately 0.36% of Nigeria’s cumulative Gross Domestic Product (GDP) and can be achieved simply by accelerating the adoption of cloud technologies.
Nairametrics reports that AWS is a subsidiary of Amazon which provides on-demand cloud computing platforms and APIs to individuals, companies and governments, on a metered, pay-as-you-go basis.
Benefits of Cloud Adoption
Speaking on Cloud adoption, she emphasized that it allows enterprises to enhance the scalability of internet-based database capabilities while reducing costs and risks.
It involves using remote servers hosted on the internet to store, manage, and process critical data, offering businesses greater flexibility and efficiency.
Amrote Abdella speaking further said that there is a substantial potential for economic growth through harnessing cloud computing and suggested that by increasing current average cloud penetration rates, the region could unlock even more economic value.
What she said
She emphasized the benefits of cloud adoption to Nigeria saying,
- “AWS is committed to supporting its customers and partners in Nigeria throughout their cloud journey.
- “We firmly believe that cloud technology will be crucial in driving innovation, boosting productivity, and scaling businesses in the region over the next decade.
- ‘’With the current forecast, the economic impact of the cloud is undeniable and is poised as a key catalyst for economic prosperity.
- “As such, it is important for businesses in the region to invest in cloud computing technology to stay competitive and boost their economic potential,’’ she said.
What the study indicates
The study conducted by AWS underscores that the economic impact of cloud computing is closely tied to the scale of its adoption. It shows greater adoption of cloud computing leads to proportionally larger productivity gains and economic benefits.
Amrote Abdella, AWS General Manager, pointed out 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 indicates a substantial opportunity for Nigeria to increase its cloud adoption rates and consequently realize significant advantages. She further highlighted four key advantages of cloud computing, including the enhancement of business efficiency and effectiveness, process optimization, improved outcomes, and access to a wide array of services that enable businesses to leverage advanced technologies.
- “It boosts productivity by facilitating collaboration, mobility and agility within the workforce.
- “Lastly, cloud computing promotes environmental sustainability by reducing carbon emissions per unit of data transmitted,” the AWS general manager added.