IXPN Saves Nigeria N2Billion Yearly from Foreign Internet Traffic Hosting 

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(Last Updated On: 2016-12-09)

Nahimah Ajikanle Nurudeen


The Internet Exchange Point of Nigeria,  (IXPN) is currently saving about N2 billioN yearly from foreign hosting of internet traffic.

The amount could increase to N10 billion if all data traffic emanating from the country is hosted locally.


Currently, mostbpublic and private organisations in Nigeria host their internet content in various data centers around the world making the country to loose N10 billion annually.

Speaking at the Telecom Executive and Regulators Forum in Lagos, yesterday, the Executive Vice Chairman, Nigeria Communications Commission (NCC), Prof. Umaru Danbatta described the Internet exchange point (IX or IXP) as a physical infrastructure through which Internet service providers (ISPs) and Content Delivery Networks (CDNs) exchange Internet traffic between their networks.

According to him, IXPs reduce the portion of an ISP’s traffic which must be delivered via their upstream transit providers, thereby reducing the average per-bit delivery cost of their service.

Danbatta, who was represented by the Executive Director, Technical Services, Ubale Maska, explained that the IXPs were the focal point of the Internet.

He explained that  they were, therefore, critical for the development of the Internet in any country, as not only do they reduce the cost of Internet traffic by keeping local traffic local, “but more importantly, they enable additional applications, which have a considerable multiplier effect on the economy.”

“It has been estimated that IXPN saves the nation above N2 billion yearly, which would have been paid out to international carriers in US dollars if this facility was not available in Nigeria,” Danbatta said.

He said: “Internet Exchange Point of Nigeria is an initiative of the NCC that enables Internet service providers, telcos, content providers and educational institutions to exchange Internet traffic locally within Nigeria.

“For every Internet content hosted locally, it saves Nigeria foreign exchange which would have been paid to foreign companies, this ensures that local data centres flourishes, hence, creating more jobs and increase technical competency for our engineers.”

The EVC noted that NCC also provided the seed funding that set up IXPN as a not-for-profit organisation with the key objective of improving the ICT ecosystem and is now the second largest IXP in Africa.

According to him, IXPN also reduces the delays associated with routing local traffic internationally, adding that this drop in latency increases speed and better quality of service to end users.

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Also,  the Managing Director, IXPN, Muhammed Rudman, disclosed that Nigeria had won the bid to become Regional Internet Exchange Point (RIXP) for West Africa region in the African Internet Exchange System project under the African Union Commission.

Rudman said IXPN is in the process of receiving grant from African Union to achieve among others provision of power autonomy to Kano exchange point through solar panels and battery bank; interconnect one West African country as a proof of concept for RIXP; upgrade IXPN core equipment to handle large traffic capacity, among others.

Rudman said that regional IXPs would promote localisation of traffic in each zone and more efficient way of exchanging traffic across the country.


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