Nigeria’s Digital Economy at Risk as Foreign Domains Dominate Government Platforms

Stakeholders in Nigeria’s internet governance space have raised concerns over the nation’s failure to fully harness its digital identity, warning that policy oversights are leaving critical infrastructure underutilised and exposing the economy to revenue leakage.

Adesola Akinsanya, President of the Nigeria Internet Registration Association (NiRA), issued the warning while assessing the country’s digital transformation trajectory. According to her, although Nigeria has made commendable progress in expanding internet access and rolling out digital services, the governance frameworks guiding the nation’s online space have not kept pace.
“Digital transformation is more than access to technology. It’s about identity, control, and ensuring that the economic value generated online remains in Nigeria. Our policies have overlooked the strategic role of the .ng domain, leaving critical aspects of national digital infrastructure underutilised,” Akinsanya said.
At the heart of the concern is the slow implementation of the Nigeria First Policy, which was signed into effect in 2025. The policy mandates that all government ministries, departments, and agencies migrate to the .ng domain and host a substantial portion of their data within the country. Despite this directive, adoption has remained sluggish, with numerous public institutions continuing to operate on foreign domains and hosting services domiciled outside Nigeria.

Industry observers note that this inertia carries significant consequences. Beyond the cybersecurity risks associated with offshore hosting, the continued reliance on foreign domain extensions channels revenue away from the local economy. Conversely, a robust uptake of the .ng domain could stimulate activity in domestic data centres, reduce latency, and enhance investor confidence in Nigeria’s digital infrastructure.

“Local domains like .ng are the backbone of digital trust. They reinforce legitimacy for businesses, government institutions, and the growing fintech and e-commerce sectors. Without strong policy enforcement, we risk creating a digital economy that thrives on Nigerian talent but is monetised elsewhere,” Akinsanya affirmed.

Meanwhile, the association’s caution aligns with emerging data indicating that despite rising internet penetration figures, only a fraction of government websites have transitioned to the country code top-level domain. Analysts argue that this disconnect undermines credibility, slows the pace of digital innovation, and diminishes Nigeria’s competitive edge in the global online economy.

In response to these challenges, NiRA is advocating for a multi-pronged approach to drive awareness and adoption. Recommended measures include stricter procurement guidelines mandating the use of .ng domains for all public sector digital platforms, targeted incentives to encourage small and medium enterprises to migrate, and enhanced support for local data hosting providers to ensure capacity meets demand.
“The value of a nation’s digital identity cannot be overstated. Every .ng domain registered locally is a step toward economic retention, cybersecurity, and true digital sovereignty. Policy blindspots are the real threat to Nigeria’s internet identity today,” Akinsanya averred.