Nigeria is seeking to expand its domestic cloud infrastructure as the government moves to reduce the cost of digital services, limit capital outflows and create jobs through a stronger digital economy.
The National Information Technology Development Agency (NITDA) is working with local data centre operators and global cloud providers to increase domestic cloud capacity under a new National Sovereign Cloud initiative, NITDA Director-General Kashifu Inuwa said.
Inuwa said more than 85% of Nigeria’s workloads currently run on public cloud platforms, with a significant share of the underlying infrastructure hosted outside the country.
The government wants international cloud providers, particularly hyperscalers, to establish infrastructure in Nigeria rather than serving Nigerian customers exclusively from overseas facilities.
“Our goal is not to take away the public cloud. It’s to get hyperscalers to localise,” Inuwa said.
The initiative is designed to strengthen what NITDA describes as Nigeria’s digital self-determination while ensuring that critical data and services remain operational during disruptions to international connectivity.
Nigeria’s dependence on overseas cloud infrastructure also exposes businesses and consumers to foreign-currency costs, according to Inuwa.
NITDA and Galaxy Backbone are working towards a memorandum of understanding aimed at making cloud services more affordable for startups and allowing them to pay in naira.
Inuwa said increased local competition could also put downward pressure on prices as more providers build capacity within the Nigerian market.
“Right now, lack of competition means hyperscalers set their own price,” he said. “With local competition and capacity, prices will naturally drop.”
The push builds on Nigeria’s Cloud First policy, introduced in 2019 to discourage government ministries, departments and agencies from establishing separate data centres and encourage the use of cloud services.
According to Inuwa, the policy successfully moved government and private-sector workloads towards cloud computing but also revealed a gap in local infrastructure development. Many organisations moved directly to international public cloud platforms rather than contributing to the growth of domestic capacity.
NITDA subsequently brought international hyperscalers and Nigerian data centre operators together to identify barriers to localising cloud infrastructure. A technical working group involving both groups was established in November 2024.
The process has produced three guidelines covering data classification and cloud policy, minimum requirements for cloud service providers and digital quality assurance, Inuwa said.
The sovereign cloud initiative is not intended to shut out international technology companies. Instead, the government wants global providers to establish and expand infrastructure within Nigeria.
“For us, the sovereign cloud is not about protectionism or shutting out big cloud providers. It’s about asking them to come and build with us in Nigeria,” Inuwa said.
The government also plans to develop a more resilient national cloud infrastructure by establishing multiple locations that can serve as backup facilities if one data centre or network connection becomes unavailable.
Inuwa said the strategy could position Nigeria as a digital gateway for West and Central Africa while reducing the vulnerability of critical services to disruptions such as submarine cable cuts.
For consumers, the government expects increased domestic cloud capacity to eventually reduce the foreign-currency component of digital services while supporting the production and hosting of more local content.
Inuwa compared the proposed infrastructure to refineries, arguing that Nigeria could retain more value from its growing digital consumption by hosting and producing services domestically.
“Imagine paying for all those platforms in naira, with no capital flight,” he said. “Imagine jobs being created in Nigeria.”
The initiative forms part of a broader six-pillar strategy covering policy and regulation, funding and investment, infrastructure, digital skills, innovation and local content, as well as cybersecurity and digital trust.
NITDA is also seeking to encourage investment in local infrastructure through incentives and financing. Government agencies could help create demand for domestic cloud providers through procurement and compliance requirements.
Inuwa said possible measures could include subsidised capacity, procurement preferences and tax incentives, although some of these decisions would require action from other regulators.
The strategy does not mean Nigerian government agencies will be prohibited from using international public cloud platforms. Inuwa said the existing Cloud First policy remains in force, with the government instead focused on increasing the amount of cloud infrastructure physically located within Nigeria.
The broader objective, according to Inuwa, is to create a more resilient digital ecosystem capable of supporting Nigeria’s growing technology sector and ensuring continuity of critical services.
“We have a strategy with six pillars,” Inuwa said. “The big picture is to build a digital triangle in Nigeria for resilience and service assurance.”
