Okra, a Nigerian open-banking startup, has launched Nebula, its new cloud infrastructure platform, in response to Nigeria’s growing need for local cloud services. As global cloud service prices soar due to naira devaluation, Nebula offers local currency payment options, joining competitors like Nobus, Layer3, and Galaxy. Okra’s CEO, Fara Ashiru, emphasized Africa’s dependence on costly foreign solutions, which Nebula aims to challenge. This launch comes as local cloud companies push for government adoption under Nigeria’s 2019 National Cloud Computing Policy.
Expanding Cloud Market
Okra’s shift into cloud services highlights the increasing demand for affordable, homegrown solutions in Nigeria. The country’s economic landscape has put pressure on businesses to cut costs, especially with foreign cloud giants like AWS, Google Cloud, and Microsoft Azure, which charge in dollars. Naira devaluation has made these services significantly more expensive for Nigerian companies, who are now turning to local alternatives. The advantage of accepting naira payments, which Okra offers with Nebula, has made local cloud providers more appealing. These providers aim to position themselves not only as affordable but also as crucial players in reducing the country’s foreign exchange burden.
Leveraging Local Cloud Solutions
Okra’s entry into the cloud infrastructure business follows its discontinuation of several open-banking products due to lower-than-expected demand. By expanding into cloud services, the company diversifies its revenue streams and caters to a growing market where local cloud providers, like Nobus and Layer3, are thriving. In July, local cloud companies held talks with government institutions to become the preferred providers for state and federal agencies, supported by Nigeria’s 2019 National Cloud Computing Policy, which mandates local patronage of cloud services.
The Naira’s Role in the Cloud Market
As the Nigerian economy faces currency devaluation, cloud costs have surged, doubling over the past year. Most Nigerian companies, who historically used global services, are now seeking alternatives to reduce their exposure to dollar-based expenses. By adopting services like Nebula, businesses can manage their cloud costs more effectively while supporting local solutions.
Okra’s Nebula launch is a strategic move that positions the company alongside Nigeria’s key cloud providers, helping shape the future of cloud infrastructure in the country as it seeks to be a major player in Africa’s technology ecosystem.