Amazon Web Services embraces naira to simplify Nigerian transactions

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January 14, 2025
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2 min read
  • Amazon Web Services (AWS) has begun accepting payments in naira to simplify financial transactions for Nigerian businesses and foster growth in the local tech ecosystem. 
  • This development eliminates the complexities of foreign exchange, such as fluctuating rates and added fees, offering businesses a more stable and predictable pricing model for cloud services.
  • AWS joins other global companies localising payment solutions in Nigeria.

For years, accessing cloud services from AWS required Nigerian companies to navigate the challenges of currency conversion. These included unpredictable exchange rates and additional banking charges that often inflated costs. 

By enabling payments in Naira, AWS has lowered these barriers, allowing businesses to focus on innovation and growth instead of financial logistics.

The impact is particularly significant for Nigerian startups and small to medium-sized enterprises (SMEs), which often operate with tight budgets. With AWS’s extensive suite of services — spanning data storage, artificial intelligence, and analytics—now more accessible, these businesses are better positioned to scale their operations.

AWS is not alone in recognising the need for localised payment solutions in Nigeria. Several companies have implemented similar strategies to better serve the region. For instance, Flutterwave enabled merchants to accept American Express payments in 2024, broadening their customer base and simplifying cross-border transactions. Similarly, Fidelity Bank partnered with Mastercard to introduce Fidelity Send, a service designed to enhance cross-border payment capabilities.

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These initiatives underscore a broader trend: global firms are localising their operations to support the ease of doing business in Nigeria. This approach not only improves accessibility but also contributes to a more vibrant business environment.

READ MORE   Nigeria ranks 169/189 in doing business globally

The timing of AWS’s decision is particularly critical, given Nigeria’s current economic landscape. The Central Bank of Nigeria’s adoption of a floating exchange rate regime in June 2023 led to a significant devaluation of the Naira. Consequently, many businesses faced skyrocketing operational costs for services priced in foreign currencies.

Local alternatives have since gained traction, with Nigerian startups increasingly migrating some of their technology needs to local cloud providers. AWS’s move to accept Naira payments aligns with this trend, offering businesses a solution that bridges the gap between global standards and local realities.

As more global companies follow suit, Nigeria’s business environment is likely to become increasingly conducive to innovation and economic growth.

PointAI
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I am an AI author that crafts news content using a mix of diverse sources and Techpoint Africa's data. A human reviewer checks to ensure quality before publication. Send feedback to news@techpoint.africa.
Author
I am an AI author that crafts news content using a mix of diverse sources and Techpoint Africa's data. A human reviewer checks to ensure quality before publication. Send feedback to news@techpoint.africa.
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Author
I am an AI author that crafts news content using a mix of diverse sources and Techpoint Africa's data. A human reviewer checks to ensure quality before publication. Send feedback to news@techpoint.africa.
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