Nigerian businesses have been urged to consider using local technology providers where they can deliver the quality, reliability and security required for their operations.

The call was made by Joseph Effiok Hogan, founder of HoganHost and chief executive officer of ZuumHost, who said purchasing decisions by businesses could influence the development of Nigeria’s domestic digital economy.

Hogan made the argument in a post shared on LinkedIn, where he encouraged companies operating in Nigeria to look beyond the choice of domain name when considering how they can support local technology businesses.

According to him, using a Nigerian hosting company can provide a way for businesses to support the domestic technology ecosystem even when their websites operate on international domain extensions.

He cited the example of a Nigerian company using a .com, .org or .net domain but hosting its website with a Nigerian provider.

“If I want to patronize a Nigerian business and I notice that the company is not using a .ng domain, but its website is hosted by a Nigerian hosting company, I can still confidently do business with them,” Hogan said.

He said he would be less inclined to support a Nigerian company that uses neither a Nigerian domain extension nor a Nigerian hosting provider, although he acknowledged that such a position should not be treated as a blanket standard for every business.

Hogan said there were legitimate reasons why Nigerian companies might choose international domain extensions.

Businesses that serve customers in different countries, for instance, may prefer a global domain such as .com. Other organisations may use .org, .net or other extensions because of their business model, target audience or existing digital identity.

He also recognised that some businesses may need technology services that are not currently available from Nigerian providers.

His argument is therefore centred on choice. Where a Nigerian company can provide the required service at an acceptable standard, businesses should consider giving local providers an opportunity.

That could include web hosting, domain registration and other technology services connected to the day-to-day operation of digital businesses.

For Hogan, supporting local technology should not mean compromising on the basic requirements businesses need from their service providers.

He argued that local companies must first demonstrate that they can provide reliable infrastructure, effective customer support, competitive pricing and adequate security.

“Supporting Nigerian technology should not be based on sentiment alone. We have to earn that trust,” he said.

The point places responsibility on both sides of the local technology market. Businesses may have an interest in strengthening the domestic digital ecosystem, but technology providers must also compete on the quality of the services they offer.

Hogan said local hosting and technology companies need to continue investing in infrastructure and improving their service delivery if they want Nigerian businesses to choose them over international competitors.

For customers, factors such as website availability, security, technical support, pricing and reliability can have a direct effect on business operations. A local provider that fails in any of these areas risks losing customers regardless of the appeal of supporting a domestic company.

Hogan argued that improving the competitiveness of Nigerian technology businesses could have wider economic benefits.

A stronger domestic technology sector could support employment, attract investment and give Nigerian businesses more options when sourcing digital services.

The .ng domain extension, he added, also has a role to play in establishing Nigeria’s identity online.

While a Nigerian domain may be useful for organisations seeking to communicate a clear local identity, Hogan maintained that companies serving international markets should not be expected to abandon global domain extensions simply for that reason.

Such businesses could still contribute to the local technology economy by using Nigerian hosting providers or sourcing other digital services locally where suitable options exist.

Nigeria’s digital economy has expanded rapidly, creating demand for web hosting, domain registration, software, digital payments and other technology services. Local companies compete with international providers for a share of that market.

Hogan’s argument is that the development of the domestic industry cannot depend entirely on government policies or investment from technology companies.

Businesses that purchase digital services also influence the market through their choices.

At the same time, local technology providers have to demonstrate that their services can meet the expectations of customers operating in an increasingly competitive digital environment.

For Hogan, the relationship should therefore be based on performance rather than sentiment.

Nigerian businesses should consider domestic providers when those providers can meet their needs, while local technology companies must continue improving the infrastructure and services required to win and retain customers.

Joseph Effiok Hogan is the founder of HoganHost and chief executive officer of ZuumHost, which operate in Nigeria’s domain registration and web hosting sector.