Nigeria’s Tech Sector Backs 2027 Data Localisation Deadline as Digital Economy Gains Momentum
Nigeria’s technology industry has expressed growing confidence ahead of the Central Bank of Nigeria’s (CBN) January 1, 2027 deadline requiring financial institutions to localise critical data within the country. Industry leaders believe the policy will strengthen Nigeria’s digital economy, boost national data sovereignty, and create new opportunities for innovation in artificial intelligence and cloud infrastructure.
Speaking at a forum organised by Hyperscalers Africa, key players in the data centre ecosystem described the directive as a long-awaited catalyst rather than a regulatory burden. Open Access Data Centres CEO, Dr Ayotunde Coker, stressed that data has become one of the world’s most valuable resources, warning that countries that fail to retain control of their data risk missing out on the economic benefits of the rapidly expanding AI revolution. According to him, localising data is essential for protecting Nigeria’s position in the global digital value chain.
Experts at the event noted that Nigeria currently operates about 21 data centres, with nearly 90 per cent located in Lagos. However, analysts estimate that the country will require at least 72 data centres to support its ambition of becoming a $1 trillion economy by 2030. This growing demand is expected to drive investment in local infrastructure, create jobs, and strengthen the nation’s capacity to host and process critical digital information.
Industry stakeholders also acknowledged the challenges involved in implementing the directive. Precise Financial Systems CEO, Dr Yele Okeremi, said the move marks a return to greater local control after years of dependence on foreign cloud providers such as Microsoft Azure, Amazon Web Services, and Huawei Cloud. Meanwhile, Geniserve CEO, Gbenga Adegbiji, highlighted the importance of power reliability, seamless data migration, and robust disaster recovery systems, noting that Nigerian engineers have developed unique expertise in building resilient infrastructure despite power supply limitations.
Despite concerns about execution, experts remain optimistic that Nigeria possesses the technical capacity to meet global standards. They pointed to internationally certified local data centres and encouraged collaboration among banks, fintechs, and technology providers to reduce costs and share expertise. Beyond regulatory compliance, stakeholders believe the 2027 deadline could become a defining moment for Nigeria’s digital future by enabling the development of local AI models, enhancing cybersecurity, and positioning the country as a leading technology hub in Africa.
source: The guardian