By Kingsley Samuel
In a direct response to the structural challenges stalling Nigeria’s startup ecosystem, from high infrastructure costs to data insecurity and forex instability, the National Information Technology Development Agency, NITDA, has partnered with Galaxy Backbone Limited, GBB, to deploy a subsidised sovereign cloud framework for early-stage ventures.
The initiative, driven through the Office for Nigerian Digital Innovation, ONDI, is designed to tackle the root causes of startup failure by providing affordable, secure, and locally hosted digital infrastructure to participants in the iHatch programme.
For many Nigerian startups, the cost of hosting applications on foreign cloud platforms, often denominated in dollars, has remained a major barrier, forcing some to scale down operations or shut down entirely. The new partnership seeks to eliminate this pressure by offering cloud services on the Galaxy Cloud Platform, GxCP, with billing structured in naira.
Director General of NITDA, Kashifu Inuwa Abdullahi, said the intervention is focused on removing systemic bottlenecks that prevent startups from surviving beyond early stages.
“One of the key problems we identified is that startups spend a significant portion of their limited resources on infrastructure. This affects their ability to innovate and compete. By lowering this cost, we are giving them a fair chance to succeed,” he said.
He noted that beyond cost, the issue of data sovereignty has become increasingly critical, particularly as startups handle sensitive user and business data.
“With local cloud infrastructure, startups can host their data within Nigeria, ensuring compliance, improving security, and building trust with users,” Abdullahi added.
Also addressing the infrastructure gap, Managing Director of GBB, Ibrahim Adeyanju, said the partnership provides startups with access to enterprise-grade systems that were previously out of reach.
“Startups often operate with limited capacity, yet they need reliable infrastructure to grow. What we are offering is stability, a platform that allows them to build without worrying about downtime, security breaches, or escalating foreign costs,” he said.
To prevent misuse and ensure targeted impact, the programme introduces a milestone-based model where cloud credits are released in phases, Build, Validate, and Scale, aligning infrastructure access with actual business growth.
This structure, according to stakeholders, addresses another common problem: inefficient resource utilisation by startups unfamiliar with managing cloud environments.
To bridge this gap, GBB has deployed a dedicated support system, including a Startup Success Team and automated monitoring tools, to guide startups in optimising usage and avoiding unnecessary costs.
General Manager of Strategic Partnerships at GBB, Abdul Malik Suleiman, described the initiative as a practical intervention aimed at correcting long-standing disconnects in the ecosystem.
“Innovation has always been strong in Nigeria, but infrastructure support has lagged behind. This partnership is about closing that gap and giving startups the foundation they need to grow sustainably,” he said.
Another critical issue being addressed is financial unpredictability caused by exchange rate fluctuations. By ensuring that all post-credit payments are made in naira, the initiative offers startups cost stability and better financial planning.
National Coordinator of ONDI, Victoria Fabunmi, said the integration of cloud infrastructure into the iHatch programme marks a shift from training-focused interventions to end-to-end ecosystem support.
“Training alone is not enough. Startups need tools, platforms, and systems to implement what they learn. This initiative ensures they are fully equipped to move from ideas to scalable solutions,” she said.
With over 160 startups already trained across 37 hubs, the iHatch programme is now evolving into a more holistic support system, one that not only nurtures ideas but also removes the operational barriers that hinder growth.
Industry observers say the NITDA-GBB collaboration reflects a broader shift toward problem-solving in Nigeria’s digital economy, focusing less on policy rhetoric and more on practical solutions that enable startups to survive, scale, and compete globally.
