The Central Bank of Nigeria's directive requiring banks, payment service providers, and fintech companies to store all payment transaction data generated within Nigeria on local servers is emerging as a major catalyst for the country's digital infrastructure sector.
Data centre operators say the policy, which takes effect on January 1, 2027, could unlock significant investment, strengthen data sovereignty, and reduce Nigeria's dependence on foreign infrastructure. While some stakeholders have raised concerns about implementation costs and infrastructure readiness, operators of the country's largest data centres argue that capacity concerns are overstated.
**Ikechukwu Nnamani**, Chief Executive Officer of Digital Realty Nigeria, described the directive as a positive development for both the data centre industry and the wider economy. He said localising banking and financial services data will stimulate demand for data centre services, encourage the expansion of existing facilities, and attract investment into new infrastructure projects.
"This is a positive development not only for the data centre industry but for the digital economy of Nigeria," Nnamani said. He noted that increased demand for data hosting capacity would create jobs during both the construction and operational phases of new facilities, while also improving service quality through lower latency.
According to Nnamani, local hosting would significantly reduce the volume of foreign exchange currently spent on overseas cloud and data hosting services. Many Nigerian financial institutions rely on servers and cloud infrastructure located in Europe, North America, and other international markets, resulting in recurring foreign currency payments.
"With localisation of data and services within Nigeria-based data centres, payments will be made in local currency, thereby reducing pressure on the naira," he said.
**Dr. Ayotunde Coker**, Chief Executive Officer of Open Access Data Centres (OADC), noted that Nigeria has already established itself as a regional digital infrastructure hub, delivering infrastructure at globally competitive standards. He added that Lagos has increasingly emerged as West Africa's digital infrastructure hub, attracting significant investment into large-scale facilities.
On power availability, a key concern for energy-intensive data centres, Coker noted that operators are increasingly leveraging gas-powered generation and working with state governments to expand electricity infrastructure. The ongoing decentralisation of Nigeria's power sector could provide additional opportunities for states to support large-scale digital infrastructure investments.
**Mr. Yele Okeremi**, Chief Executive Officer of Precise Financial Systems Ltd (PFS), said the CBN's directive reflects a broader global shift towards treating data as a strategic national resource. He argued that Africa has historically exported raw commodities while allowing others to capture most of the value through processing and industrialisation, and that the same risk now exists in the digital economy.
"If you do not control your data and continue to give it out, you are back to the basis of primary products again," Okeremi said. He described data as one of the most valuable resources in today's economy, particularly in an era increasingly defined by artificial intelligence.
Earlier, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, dismissed concerns about Nigeria's infrastructure readiness, pointing to existing data centre capacity already serving international clients. He noted that Nigeria currently has about six Tier III data centres, with additional facilities under development.
