Nigeria’s digital economy is set for a major boost following the Central Bank of Nigeria’s (CBN) directive requiring all payment transaction data generated within the country to be stored locally. Industry experts believe the policy will not only strengthen data security but also trigger significant investment in local data centres, cloud computing, and digital infrastructure. With full compliance expected by January 1, 2027, the directive is already being viewed as a game-changer for the nation’s technology ecosystem.
Adebola Omololu, Co-founder of GFA Technologies Group, described the CBN data localisation directive as more than a regulatory requirement, calling it a catalyst for Nigeria’s next phase of digital transformation. According to him, the move will create long-term demand for domestic digital infrastructure while encouraging financial institutions, fintech companies, investors, cloud providers, telecommunications firms, and policymakers to invest in locally hosted technology solutions that support the country’s growing digital economy.
As part of its response to the expected surge in demand, GFA Technologies announced plans to develop the 200MW Abeokuta Technology Zone Data Centre and Digital Infrastructure Campus. The large-scale project is designed to provide carrier-neutral data centres, sovereign cloud services, disaster recovery facilities, managed infrastructure, enterprise colocation, and future-ready capacity for artificial intelligence workloads. Omololu explained that the company’s strategy is to build infrastructure where long-term market demand is evident rather than simply where land or existing capacity is available.
The growing volume of electronic payments in Nigeria further highlights the need for stronger digital infrastructure. Citing CBN figures, Omololu noted that electronic payment transactions increased from 16.3 billion in 2021 to 38.7 billion in 2023 and are projected to exceed 60 billion by the end of 2026. This rapid growth will require greater investment in payment systems, cybersecurity, databases, backup facilities, fibre connectivity, disaster recovery centres, and skilled technology professionals capable of supporting the country’s expanding financial ecosystem.
Beyond banking and fintech, experts believe the infrastructure developed under the CBN data localisation directive will create lasting benefits for sectors such as artificial intelligence, healthcare, education technology, e-government services, and enterprise cloud computing. As Nigeria processes record-breaking digital transactions, the policy is expected to strengthen the nation’s digital sovereignty while laying the foundation for long-term innovation, improved cybersecurity, and sustainable economic growth.
source: punch
