Amazon Web Services (AWS), the global cloud leader, has announced that it will now accept payments in Naira. This responds directly to the growing demand for localised solutions amid Nigeria’s economic challenges.
The devaluation of the Naira since 2023 has led to a sharp rise in dollar-based cloud costs. As a result, these dollarised services now cost Nigerian businesses over 114% more. For context, a $1,000 service priced at ₦700,000 in 2023 now costs over ₦1.5 million. This steep rise has been a challenge for startups that rely on AWS for cloud infrastructure.
In this difficult economic environment, AWS’s move to accept payments in local currency is a welcome relief for startups and companies already utilising its platform.
By accepting payments in naira, AWS’s position in the Nigerian cloud market is strengthened.
Since 2016, MTN’s Business Cloud Services, denominated in Naira, has focused on providing affordable and localised cloud solutions for Nigeria’s 37 million SMEs. More recently, Nigerian startup Okra entered the cloud services space, joining established players like Nobus Cloud and Layer3.
These local players have successfully leveraged Nigeria’s FX volatility and demand for locally relevant solutions as an avenue for growth.
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AWS’s local currency acceptance may signal a broader recognition of the potential economic impact of cloud services in Nigeria. Telecom Advisory Services LLC, a consulting firm in a report sponsored by AWS, predicts that cloud adoption could yield $38.2 million (₦30.2 trillion) in economic value by 2033.
In the wider context of Africa, the cloud service provider is yet to support local payments in Kenya, one of the hottest startup destinations on the continent. For instance, Kenya received the most venture funding in 2024.
Though AWS’s move to Naira is a step in the right direction, the larger challenge remains—cloud computing is an essential tool for business growth and economic expansion, but its costs continue to pose significant hurdles.
So, while local founders applaud the ability to pay in their local currency, they also look forward to prices commensurate to the reality of their market. This is an area local cloud service providers can win on before AWS decides to do it or not.
