The Nigerian open banking pioneer, Okra, has expanded its technological footprint by venturing into the cloud services sector with the introduction of its new platform, Nebula. By launching Nebula, Okra is positioning itself alongside a growing contingent of indigenous cloud service providers such as Nobus, Galaxy, and Layer3. These companies are establishing themselves as cost-effective alternatives to the dominant international players like Amazon Web Services (AWS) and Microsoft Azure.
This strategic move represents Okra’s adaptation to the changing economic landscape in Nigeria and the broader African market, as well as its commitment to meeting the dynamic requirements of the continent’s businesses.
Fara Ashiru, Okra’s CEO, underscored the significance of nurturing domestic innovation in a statement shared on LinkedIn. She pointed out the long-standing reliance of Africa on external solutions, which often come with a hefty price tag. Ashiru highlighted Nebula’s advantage in accepting payments in the local currency, the naira, which is a significant benefit in Nigeria where the economy has been impacted by currency devaluation.
Nebula’s debut is timely for Nigerian enterprises that are seeking to minimize their reliance on the US dollar due to the naira’s weakening value. Local businesses are facing increased costs for international cloud services, which are billed in foreign currencies, exacerbating the financial challenges of operating within a tough economic climate.
Okra’s foray into the cloud market reflects a broader trend among Nigerian tech companies aiming to capture a portion of the market share from global giants by offering locally-developed solutions. The Nigerian government’s National Cloud Computing Policy, which recommends that government agencies give preference to local cloud service providers, further enhances the attractiveness of these domestic options.
Local cloud firms have been actively engaging with both state and federal government bodies, seeking greater governmental backing. For Okra, Nebula is not just an expansion of services but also a strategic move to diversify its revenue streams, particularly in light of discontinuing at least three of its initial offerings. This suggests that Okra is looking to compensate for potential downturns in its core open banking segment.
The timing of Nebula’s launch is strategic, as cloud computing expenses have surged for Nigerian companies that depend on international services like AWS, Azure, and Google Cloud, which bill in US dollars. Okra’s journey into cloud services follows its successful funding rounds, including a $1 million pre-seed investment in April 2020 and a subsequent $3.5 million seed investment in the following year, both aimed at expanding its operations within Nigeria.
