Investors flock to Lagos coast

If Lagos’ coastline were a nightclub, data centre investors would be standing in line, waving cash, and bribing the bouncer to get in. By 2027, the city’s data centre capacity is set to hit 80 megawatts (MW), making it the second-largest hub in Africa—right behind Johannesburg, which is still hogging the VIP section at 200MW.

So, what’s making investors flock to Lagos? Fast internet, for starters. The city is home to eight submarine internet cables, including Google’s Equiano and 2Africa. The closer a data centre is to these underwater lifelines, the quicker your Netflix streams, Zoom calls, and trades.

“It’s all about infrastructure and proximity to landing stations,” says Ayotunde Coker, CEO of Open Access Data Centre (OADC). Translation? Lagos Island is prime real estate, with 10 of Nigeria’s 16 data centers squeezed into Victoria Island, Lekki, and Eko Atlantic City. And more are coming: Equinix’s 20MW facility, Nxtra by Airtel’s 38MW center, and OADC’s 24MW hub are all in the works, set to push Nigeria’s total capacity to 200MW.

But there is more. Investors are also drawn to, wait for it, Lagos’ steady power supply—Victoria Island and Lekki get up to 20 hours of electricity daily—and access to coastal waters for cooling the beasts that keep the internet running.

For now, Lagos’ coastline is the hottest spot for digital infrastructure. The only question? Can investors keep up with the tide? There’s more.

Since launching in early February, cNGN—Nigeria’s naira-backed stablecoin—has quietly made moves. It’s already listed on Busha and Quidax, two provisionally licensed platforms. Now, it wants more listings.

And the talks are already happening. The cNGN team have been in early conversations with platforms like Yellow Card and Roqqu, but nothing’s official yet. What we’re learning from leaders of both companies—COO Jason and CEO Eseoghene, respectively—is that vibes are currently more we’re still texting chatting than we’ve signed stuff.

Why does this matter?

Broader listings make cNGN easier to access for saving, investing, or sending money. Like many tokens, the catch is that cNGN is facing a classic network effects problem. It needs more users to become useful, but it also needs to be useful to get more users. The more people hold and transact with cNGN, the more enthusiasm exchanges will have to list it. Being on larger exchanges, in particular, will allow more users to discover the stablecoin and spread the word.

Right now, that flywheel has spun on 161 holders, according to its website. WAGMI or NGMI? The next few months will be critical for the coin to tip the momentum—consider this an extra push.

BYD, a Chinese automaker, has entered the Nigerian market, introducing its Atto 3 and Dolphin electric vehicle (EV) models. This launch is in partnership with LOXEA Nigeria, a subsidiary of CFAO Mobility, a vehicle distribution company.

Per Vanguard, LOXEA will lead BYD’s EV distribution and installation of charging stations, maintenance, and repair workshops across the country.

BYD’s arrival could be a turning point for Nigeria’s EV adoption. While EVs remain a niche market due to concerns over charging infrastructure, affordability, and awareness, BYD’s global reputation for producing relatively affordable and reliable electric cars might help change the narrative. The Atto 3 and Dolphin are positioned as practical EV options, offering modern features and decent driving range.

One of the biggest challenges for EV adoption in Nigeria is the charging infrastructure. Without a widespread charging network, potential buyers may hesitate. However, partnerships like this could encourage investment in charging stations, making EVs more viable in the long run.

Affordability is another key factor. The pricing of BYD’s models in Nigeria hasn’t been disclosed yet, but the company is known for setting its prices in line with market conditions in the countries where it operates. This approach is largely due to its global competition with other EV makers, like Tesla, in those markets. However, in Nigeria, no major EV manufacturers are competing for market share in a carved-out auto market that is still in its early stages of development—so that ship might not sail.

Nigeria’s high fuel costs and growing interest in alternative energy sources could make EVs more appealing if prices are reasonable. But widespread adoption will depend on pricing, infrastructure, and government policies. 

If BYD can navigate these challenges, it could pave the way for a larger EV market in Nigeria. Its entry comes at a time when other foreign auto-makers like Russia's AvtoVAZ are making inroads into the country.

Across Africa, friends, co-workers, and neighbours form savings clubs—in Nigeria, these groups are called ajó, in Kenya, chama, and in South Africa’s stokvel. The group members pool money for loans, investments, or emergencies. They also rally donations for causes or support each other in tough times. Often, group chats across Africa double as piggy banks, and the accounting is usually a mess.

“People leave, numbers shift, payments slip away,” says Eddie Saroni, who manages donations for 258 Arsenal fans on a WhatsApp group.

GoFundMe and other crowdfunding alternatives are out there but they do not provide real-time updates on contributions so in places where trust runs thin, WhatsApp and Telegram win.

Danche Nganga, a 23-year-old Kenyan student, saw this problem in 2023 and built OneKitty—an AI-powered crowdfunding app with a chatbot that can be integrated into social apps to log every shilling live in the chat. This can improve financial management and transparency in these groups.

OneKitty also enables payment through mobile wallets like M-Pesa and Airtel Money. Since launching, OneKitty has handled 10,000+ campaigns for 200,000 Kenyans. 

If your group’s cash collection is a headache—here or anywhere— or you simply want to learn about this interesting use AI case, read on.

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