The Central Bank of Nigeria’s (CBN) directive requiring banks, fintech companies and payment service providers to store customer and transaction data within Nigeria by January 1, 2027, is expected to drive significant growth in the country’s digital infrastructure industry.
While some stakeholders have expressed concerns about implementation costs and infrastructure readiness, operators of major data centres say the policy will attract investment, strengthen data sovereignty and reduce Nigeria’s dependence on foreign digital infrastructure.
The directive comes as governments worldwide increasingly prioritise control over critical data assets amid growing concerns over cybersecurity, artificial intelligence and national digital sovereignty.
Industry players believe the policy is more than a regulatory compliance requirement, describing it as a strategic intervention capable of accelerating Nigeria’s digital transformation.
Speaking on the development, Chief Executive Officer of Digital Realty Nigeria, Ikechukwu Nnamani, described the directive as a positive development for both the data centre industry and the broader economy.
“This is a positive development not only for the data centre industry but for the digital economy of Nigeria. The benefits of this directive will positively impact all aspects of the digital economy,” he said.
According to Nnamani, localising banking and financial services data will increase demand for data centre services, encourage the expansion of existing facilities and attract fresh investments into new infrastructure projects.
He noted that growing demand for local hosting capacity would create employment opportunities during both the construction and operational phases of new facilities while improving service quality through lower latency.
Nnamani also said local data hosting would significantly reduce the amount of foreign exchange spent on overseas cloud and data hosting services.
Many Nigerian financial institutions currently rely on servers and cloud infrastructure located in Europe, North America and other international markets, resulting in recurring foreign currency payments.
“With localisation of data and services within Nigeria-based data centres, payments will be made in local currency, thereby reducing pressure on the naira. The country will also save foreign exchange that currently goes to countries where these servers are located,” he said.
The anticipated foreign exchange savings come as Nigeria seeks to reduce demand for dollars and strengthen domestic economic activity.
Despite concerns over whether Nigeria has sufficient infrastructure to accommodate the expected increase in locally hosted financial data, industry operators insist existing capacity can support the transition.
Chief Executive Officer of Open Access Data Centres (OADC), Dr. Ayotunde Coker, said Nigeria has already established itself as a regional digital infrastructure hub with facilities that meet global standards.
Although he acknowledged that Nigeria’s overall data centre capacity remains below Europe’s, he said the country is delivering world-class infrastructure capable of supporting growing digital demand.
Nnamani also expressed confidence that additional capacity would be developed in response to rising demand.
“Whatever additional capacity is needed will be built if there is demand. It is the demand that drives provision of supply,” he said.
Coker added that Lagos has emerged as West Africa’s leading digital infrastructure hub, attracting investment into large-scale facilities supporting cloud computing, fintech services and artificial intelligence applications.
Addressing concerns over electricity supply, Coker noted that power challenges are not unique to Nigeria and said operators are increasingly relying on gas-powered generation while partnering with state governments to improve electricity infrastructure.
He added that ongoing reforms in Nigeria’s power sector could create additional opportunities for states to support large-scale digital infrastructure investments.
Earlier this month, the CBN directed banks, fintech firms, mobile money operators and other payment service providers to ensure that all payment transaction data generated within Nigeria is stored and managed on local servers.
The directive forms part of broader efforts by the apex bank to strengthen regulatory oversight, improve transparency and reduce concentration risks within Nigeria’s rapidly expanding digital payments ecosystem.
The circular, signed by the Director of the Payments System Supervision Department, Rakiya O. Yusuf, requires all affected institutions to comply fully with the directive by January 1, 2027.
The policy also comes amid a global surge in demand for computing infrastructure driven by the rapid growth of artificial intelligence.
Chief Executive Officer of Precise Financial Systems (PFS), Mr. Yele Okeremi, said the directive reflects an international shift towards treating data as a strategic national resource.
According to him, Africa risks repeating the mistakes of exporting raw commodities if it continues allowing its digital data to be processed and monetised abroad.
“If you do not control your data and continue to give it out, you are back to the basis of primary products again,” Okeremi said.
He described data as one of the world’s most valuable economic resources, particularly in the age of artificial intelligence.
“This is the world of artificial intelligence, and what artificial intelligence thrives on is data. If you take away data, you’ve taken away the oxygen from AI,” he added.
Okeremi questioned Africa’s position in the global artificial intelligence value chain despite producing enormous amounts of data that power digital platforms worldwide.
Earlier, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, dismissed concerns over Nigeria’s readiness for the policy.
He noted that Nigerian-owned data centres already host data for international clients, demonstrating that the country’s infrastructure is capable of handling domestic financial data.
“I’m happy to say that we have a lot of data centres owned and managed by Nigerians that are hosting data from other jurisdictions. If people overseas can host their data here, why can’t we host our own data here?” Adebayo said.
He added that Nigeria currently has about six Tier III data centres, with additional facilities under development, stressing that hosting capacity is more important than the number of facilities available.
