Industry experts say directive will boost national sovereignty and digital economy, but warn current infrastructure is inadequate

The Central Bank of Nigeria (CBN) has directed financial institutions nationwide to comply with a new data localisation policy effective from 1 January 2027, a move aimed at strengthening economic control and digital security. Industry stakeholders in Lagos, where over 90 percent of Nigeria’s data centres are located, have expressed optimism about meeting the deadline despite concerns over infrastructure gaps.

At a recent forum organised by Hyperscalers Africa in Lagos, senior figures in the tech sector—including Dr Ayotunde Coker, Chief Executive Officer of Open Access Data Centre; Dr Yele Okeremi, CEO of Precise Financial Systems; and Gbenga Adegbiji, CEO of Geniserve—described the CBN’s data localisation directive as a long-overdue step for Nigeria’s digital future. According to Coker, the policy is “not a hurdle but a critical catalyst for national sovereignty and economic growth.”

Analysts at the event noted that while Nigeria currently has about 21 operational data centres of varying tiers, this figure falls far short of the estimated 72 facilities required to support a projected $1 trillion digital economy by 2030. The majority of these centres are clustered in Lagos State (South-West), raising concerns about regional disparities in digital infrastructure. The experts emphasised that raw data now represents a key economic resource for nations, just as oil and agricultural exports did in previous decades.

“Data is the new primary commodity for African countries. Keeping it within our borders ensures better control and value retention,” Dr Okeremi said during his presentation. Adegbiji added that implementing the CBN directive would require significant investment but could position Nigeria as a continental leader in data management if properly executed.

The CBN’s move follows global trends where governments increasingly demand local storage of sensitive information to protect citizens’ privacy and limit external vulnerabilities. However, some sector observers warned that unless additional investments are made to expand capacity beyond Lagos and address power supply challenges, compliance could prove difficult for smaller firms outside major urban centres.

Industry leaders called on government to provide incentives and regulatory clarity to accelerate new data centre projects before the 2027 deadline. Meanwhile, the CBN has maintained that strict enforcement measures will be rolled out next year to monitor compliance across all financial institutions.

Source: https://guardian.ng/business-services/tech-sector-optimistic-about-2027-data-localisation-deadline/