CBN Data Localisation Policy Set to Attract Billions in Digital Infrastructure Investment

Nigeria’s digital economy is poised for a major boost as the Central Bank of Nigeria (CBN)’s new data localisation policy is expected to unlock billions of dollars in digital infrastructure investment across the country. Industry leaders say the directive, which requires banks, fintech firms and payment service providers to store transaction data within Nigeria, could significantly strengthen the nation’s position as a leading technology hub in Africa.

Speaking during a virtual media briefing, Chief Executive Officer of Open Access Data Centres (OADC), Dr. Ayotunde Coker, described the policy as a landmark step in Nigeria’s digital transformation journey. According to him, the country now possesses the necessary infrastructure to support local data hosting ahead of the January 1, 2027 compliance deadline. He noted that world-class data centres, reliable connectivity and indigenous cloud service providers are already in place to facilitate a seamless transition.

Coker explained that the policy sends a strong message to global technology companies and investors that Nigeria is serious about data sovereignty and digital growth. He revealed that OADC is currently expanding its facilities to 24 megawatts while integrating artificial intelligence-ready infrastructure, including advanced cooling systems and hybrid cloud technologies. These developments, he said, will help meet the growing demand for secure and efficient data storage within the country.

Beyond improving data security, the policy is expected to stimulate economic growth across several sectors. Coker highlighted that every megawatt of data centre capacity attracts roughly $10 million in infrastructure investment and creates opportunities in engineering, construction, telecommunications, energy, security and other supporting industries. He added that local hosting of financial data would also reduce reliance on foreign infrastructure and limit foreign exchange exposure for businesses paying for overseas cloud services.

As the implementation deadline approaches, industry stakeholders remain confident that Nigeria has sufficient capacity to support the migration of critical financial data. Existing operators such as OADC, Rack Centre, Equinix (MainOne), Medallion and other emerging facilities are already expanding operations to accommodate future demand. Analysts believe the CBN data localisation policy could become a game-changer, accelerating investment, creating jobs and cementing Nigeria’s reputation as one of Africa’s fastest-growing digital economies.

source: The sun