Nigeria is quietly losing a staggering ₦60 billion every year not to oil theft or corruption, but to something far less visible. foreign domain registrations and web hosting services.
A new report by the Nigeria Internet Registration Association (NiRA) reveals that despite having its own country specific domain, .ng, many Nigerian businesses continue to favor foreign extensions like .com and .org.
For many companies, it’s about perception. Foreign domains are often seen as more “global,” more prestigious, and more trustworthy especially for international audiences.
But that perception comes at a cost.
Every time a Nigerian business registers a foreign domain or hosts its website abroad, money leaves the country. Multiply that across thousands of businesses, and the result is a massive annual loss estimated at ₦60 billion.
This phenomenon is now being described as “digital capital flight.”
The impact goes beyond finances. Increased reliance on foreign services puts pressure on the Naira due to rising demand for foreign exchange. At the same time, hosting data abroad raises concerns about exposure to foreign jurisdictions and potential security risks. It also weakens Nigeria’s control over its own digital infrastructure.
The .ng domain represents more than just a web address it’s an opportunity to strengthen Nigeria’s digital economy. Choosing local domains and hosting services helps retain revenue within the country, supports local tech ecosystems, and improves data protection.
Experts warn that if this trend continues, Nigeria risks undermining its digital independence and long term economic growth.
A shift in mindset is needed. Greater awareness, competitive pricing, stronger local infrastructure, and collaboration between government and the private sector could help drive adoption of .ng domains and reduce this ongoing digital capital flight.
