Follow Us on Google
The Central Bank of Nigeria’s (CBN) directive mandating banks, fintechs and other payment service providers to store payment transaction data within the country will catalyse billions of dollars in digital infrastructure investment, strengthen the country’s data sovereignty and position Nigeria as Africa’s next major digital hub, Chief Executive Officer of Open Access Data Centres (OADC), Dr Ayotunde Coker, has said.
Speaking during a virtual media parley on the apex bank’s recent data localisation policy, Coker described the directive as a long-time coming, insisting that Nigeria now possesses the world-class infrastructure required to support full implementation before the January 1, 2027, deadline.
According to him, the policy marks a significant milestone in Nigeria’s digital transformation journey and sends a strong signal to global technology companies that the country is ready for increased investment in cloud infrastructure and hyperscale data centres.
“The infrastructure is ready. We have the colocation facilities, the connectivity, indigenous cloud providers and the capacity to support financial institutions as they transition to local data hosting,” he said.
Coker noted that, over the past decade, Nigeria had deliberately built a resilient digital infrastructure ecosystem capable of supporting critical financial services, adding that modern data centres in the country now match global standards in quality, reliability and uptime.
He disclosed that OADC is currently expanding its facilities to 24 megawatts while incorporating artificial intelligence-ready infrastructure, including liquid cooling systems and hybrid cloud architecture designed to support next-generation computing.
Beyond physical infrastructure, he said Nigeria has also made significant progress in developing reliable power systems, fibre connectivity and carrier-neutral interconnection, making large-scale local data hosting feasible.
According to him, the CBN directive is expected to accelerate investment not only by indigenous operators but also by global hyperscale cloud providers seeking to establish a stronger presence in Nigeria.
“We are already seeing increased interest. The directive tells the world that Nigeria is serious about data sovereignty. That confidence encourages investors to deploy more capital into digital infrastructure,” he said.
Other News
Coker explained that local cloud providers have equally matured, with indigenous companies already offering enterprise cloud services capable of supporting financial institutions while complementing future investments by global providers.
Responding to concerns over whether Nigeria has sufficient data centre capacity to accommodate the expected migration, Coker said existing operators, including OADC, Rack Centre, Equinix (MainOne), Medallion and other emerging facilities, possess adequate capacity, while several expansion projects are already underway.
“We are confident the industry has enough capacity to support the transition, and additional facilities are being developed as demand continues to grow,” he stated.
On the economic implications of the policy, Coker said the benefits extend far beyond the data centre industry.
He explained that every megawatt of data centre capacity typically represents about $10 million in infrastructure investment while generating significantly higher indirect economic value through engineering, construction, manufacturing, power, security, telecommunications and professional services.
According to him, the growth of the nation’s data centre industry has already created a local ecosystem of engineers, architects, construction firms, equipment suppliers and energy providers capable of delivering world-class facilities.
He added that hosting critical financial data within Nigeria would reduce dependence on foreign infrastructure, minimise foreign exchange exposure for organisations paying for overseas cloud services, enhance regulatory oversight, and support the country’s digital economy.
The CBN recently directed banks, fintech companies, mobile money operators and other payment service providers to ensure that payment transaction data generated within Nigeria is stored and managed locally in line with applicable data protection regulations, with full compliance expected by January 1, 2027.
