By David Akinmola
Data centre operators have projected a fresh wave of investments into Nigeria’s digital infrastructure following the Central Bank of Nigeria’s (CBN) data localisation policy, describing the directive as a major catalyst for expanding domestic data hosting capacity and strengthening the country’s digital economy.
The operators said the policy, which requires banks, financial institutions and payment service providers to host critical financial data within Nigeria, is expected to drive demand for local data centres, encourage infrastructure expansion and attract both local and foreign investments into the sector.
Industry stakeholders noted that the directive marks a significant step towards improving data sovereignty, cybersecurity and regulatory oversight, while reducing reliance on offshore data hosting facilities.
According to them, the expected increase in demand for local hosting services will encourage operators to invest in additional data centre capacity, cloud infrastructure and energy-efficient technologies to support the growing needs of financial institutions and other data-intensive businesses.
The stakeholders also said the policy would strengthen Nigeria’s position as a regional digital hub by stimulating investments across the broader information and communications technology (ICT) ecosystem.
They added that increased utilisation of local data centres would create new opportunities for technology firms, cloud service providers, network operators and other players in the digital value chain.
Industry experts, however, stressed that the full benefits of the policy would depend on sustained investments in reliable power supply, broadband connectivity and physical infrastructure, which remain critical challenges for data centre operators.
They also urged the government to introduce incentives that would lower the high cost of establishing and operating world-class data centres, including tax reliefs, import duty waivers on specialised equipment and improved access to stable electricity.
According to the operators, Nigeria’s growing fintech industry, increasing adoption of cloud computing, artificial intelligence and digital financial services are already driving demand for secure and resilient data storage facilities.
They argued that the CBN’s localisation policy would further accelerate this trend by ensuring that sensitive financial information is processed and stored within the country’s jurisdiction, thereby enhancing national security and consumer confidence.
Market analysts said the directive aligns with global best practices on data governance and privacy, noting that many countries are adopting similar frameworks to protect critical national data and strengthen digital resilience.
They maintained that while the policy presents significant growth opportunities for operators, its long-term success would require close collaboration among regulators, financial institutions, telecommunications companies and infrastructure providers to build a robust and globally competitive digital ecosystem.
With Nigeria’s digital economy expanding rapidly, stakeholders believe the policy could position the country as one of Africa’s leading destinations for data centre investments, provided regulatory consistency and infrastructure development remain priorities.
