During the course of the launch of `cloud computing services' in Lagos, Information Communication Technology (ICT) firm, Business Connexion (BCX) said that one of the key reasons why Small and Medium Enterprises (SMEs) have continued to remain in the informal sector in Nigeria is that the cost of technology in the country is quite high.

Noting that "one of the challenges SMEs face is technology," BCX Group's Executive Director John Jenkins said at the launch event that the creation of a formal structure of payroll for proper accounting system is expensive for individual firms. Jenkins further added that the inhibitive costs often lead the SMEs to a situation in which they have to keep themselves out of the formal environment as it requires investment.

BCX's launch of cloud computing services will apparently help Nigeria take advantage of local IT Services offering at notably reduced operating costs, greater flexibility and quick provisioning times.

Pointing out that the small enterprises should understand that the value of cloud computing services far surpasses their costs, Jenkins said that BCX intends giving the SMEs a cost effective mechanism to get into the formal sector.

Meanwhile, about the rationale behind using "a locally based Data Centre facility," BCX CEO Benjamin Mophatlane said that such a service would "ensure customer data is kept in country, bandwidth cost is kept to a minimum, applications are not impacted by network latency and a Nigerian based service for Nigerians."