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How local web hosting can boost Nigeria’s GDP growth


The Chief Executive Officer of HoganHost and ZuumHost, Joseph Hogan, in this interview with DANIEL AYANTOYE, speaks on the growing concerns around illegal websites and cybercrime, the role of hosting companies in safeguarding digital spaces, infrastructure limitations, foreign competition, and the need for stronger regulation and government support to boost the sector’s contribution to the economy

Illegal websites used for cybercrime are on the rise. Why are hosting companies allowing this to persist?

Web hosting companies have policies. Just like we do at Hogan Host, companies are empowered to shut down sites that are found to be fraudulent. Also, people are allowed to report sites that are involved in criminal or fraudulent activities. We will then contact the owner and carry out an investigation. If the report is true, we will terminate the website immediately.

How many fraudulent websites have you shut down over the past two years?

I will say we have shut down around 15 websites in two years. We usually ensure efficiency with the websites hosted with us. The problem is that people are after money, and that is why they fall victim to scams. If you are not greedy, you cannot be scammed. How can someone tell you to click a link to access free N50,000 or N100,000, and you click it without asking yourself who put the money there? These links are created by scammers and encrypted to deceive the vulnerable. I usually tell people to be mindful of the links they click. When you click, they will access your information from the device you are using. Scammers can access your passwords, secret PINs, and other relevant information on your computer or phone the moment you click their link.

Isn’t it worrying that the rise of illegal websites could increase risks to client data protection?

Yes, it is worrisome. Client data protection concerns can arise mainly because hosting is the backbone of digital business. When providers fail in uptime, security, or support, customers may suffer immediate losses. Yes, the sector is growing fast, and issues of standards and accountability are still evolving. But in this case, it lies with the hosting companies to ensure data is effectively protected to avoid putting clients at risk.

It seems there are no effective regulations to tackle these irregularities in the sector.

There are general ICT regulations, but the hosting sector needs more focused standards around uptime guarantees, data protection, and service accountability to strengthen trust and protect customers. Adequate regulation is important because it can improve standards, encourage accountability, and build customer trust, provided it supports growth rather than creating unnecessary barriers.

Many Nigerian web developers lack confidence in local hosting providers, impacting foreign exchange flows and investment in the sector. What is your perspective on this?

The issue is largely historical. Some local providers have struggled with infrastructure limitations, inconsistent uptime, and slow technical support, which affected confidence among developers. Over time, this created the perception that foreign providers are more dependable. However, that narrative is changing. We now have serious native hosting companies that have continued to invest in stronger infrastructure, better support systems, and globally competitive standards. I believe more of the issues you mentioned would be addressed.

It will be addressed through stronger infrastructure investment, transparent service standards, improved customer support, and industry-wide best practices that rebuild confidence in local providers. For instance, when the issue of downtime is eliminated, clients will not complain, and uninterrupted power supply is at the centre of that.

There are claims that some local hosting providers harm businesses through poor service. What is your response to this?

Poor service from any provider can destroy businesses, and that is why hosting companies must prioritise reliability and accountability. The solution is raising industry standards so customers can depend on local providers with confidence. The industry is becoming more competitive, and some smaller providers struggle with the cost of infrastructure, security, and scaling. Consolidation is often a way to improve sustainability and service delivery. We recently acquired another hosting firm, and the strategy is focused on growth, strengthening infrastructure, and delivering better value. It is about expansion and service improvement, not distress.

What challenges are hindering local hosting companies and enabling foreign firms to dominate the market?

The major challenges include power costs, infrastructure limitations, foreign exchange pressures, and customer perception. You know how electricity is in Africa, especially Nigeria. You cannot operate on an unreliable power supply; you have to consider alternative power sources like solar power if you want to survive in the business here. But that is not the case with foreign companies. They have uninterrupted power supply, larger infrastructure ecosystems, and global economies of scale. Having said that, I believe Nigerians can trust local hosting companies that have demonstrated consistency, transparency, and a long-term commitment to quality service. Drawing from years of experience in the technology and hosting industry, I believe confidence is built through proven performance, industry certifications, strategic partnerships, and sustained growth over time. For instance, ZuumHost will be marking its anniversary on 24 July, and Hoganhost approaches seven years of operations on 9 September this year. With accreditations across key African markets such as Kenya, Uganda, Nigeria, Rwanda, and South Africa, alongside partnerships with global infrastructure providers like DigitalOcean, it shows that indigenous hosting companies are steadily evolving to deliver reliable services that align with international standards.

How can the Federal Government further support the sector to enhance Nigeria’s GDP?

The Federal Government can strengthen the hosting sector by investing in digital infrastructure, improving power stability, and creating policies that encourage businesses to host data locally. We are all aware that the economic situation in the country is affecting everyone. The fact that we make use of foreign currency, which is very expensive, is also a challenge. Recently, we had to increase our prices, and it did not go down well with some of our clients, but that was the only option we had in line with the economic realities. The web hosting sector in Nigeria is weak because there is not enough focus and support. I will tell you that the web hosting sector in Nigeria has the potential to boost GDP. Nigeria has the market. Another aspect is that if government ministries, departments, and agencies, as well as individuals in Nigeria, patronise local web hosting companies, a lot will change. Hosting with foreign companies is undermining and weakening Nigerian hosting companies. Many of these foreign web hosting companies are targeting Nigeria, and they know why. There is a market in Nigeria, and support from the government will drive meaningful change.

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