CBN Data Localization Policy Set to Spark Data Centre Investment Boom in Nigeria
Nigeria’s digital infrastructure sector is gearing up for a major transformation following the Central Bank of Nigeria’s (CBN) directive requiring banks, fintech firms, payment service providers, and mobile money operators to store customer and transaction data within the country by January 1, 2027. Industry leaders believe the move could trigger a wave of investments in data centres, strengthen Nigeria’s digital economy, and position the country as a leading technology hub in Africa.
The policy, which is part of the CBN’s broader effort to improve oversight and transparency in the financial system, has sparked discussions across the technology and finance sectors. While some stakeholders have raised concerns about the cost of implementation and infrastructure readiness, data centre operators argue that the benefits far outweigh the challenges. They see the directive as a strategic move that will reduce Nigeria’s reliance on foreign servers while ensuring sensitive financial data remains under local control.
Chief Executive Officer of Digital Realty Nigeria, Ikechukwu Nnamani, described the policy as a game-changer for the industry. According to him, increased demand for local data hosting services will encourage the expansion of existing facilities and attract fresh investments into new projects. Beyond infrastructure growth, he noted that the initiative could create jobs, improve service delivery through lower latency, and significantly reduce the foreign exchange spent on overseas cloud and data hosting services, helping to ease pressure on the naira.
Questions have also emerged about whether Nigeria currently has enough capacity to accommodate the huge volume of banking and fintech data expected to return from foreign servers. However, industry experts remain confident. Open Access Data Centres (OADC) CEO, Dr. Ayotunde Coker, stated that Nigeria has already established itself as a regional digital infrastructure hub with facilities capable of meeting international standards. He added that demand naturally drives investment and that additional capacity will be built as more institutions comply with the directive.
The timing of the CBN’s policy aligns with a global shift toward data sovereignty and the growing importance of artificial intelligence, which relies heavily on access to large volumes of data. Technology leaders argue that data has become one of the world’s most valuable resources, and keeping it within national borders could unlock greater economic value for Nigeria. As the countdown to 2027 begins, many stakeholders believe the directive will not only strengthen the country’s financial ecosystem but also accelerate its journey toward a more resilient and self-sustaining digital economy.
source: nairametrics