Nigeria’s Digital Infrastructure Faces Test as Financial Data Localisation Mandate Looms
Nigeria’s financial sector is on the cusp of a major cloud migration, spurred by a Central Bank directive requiring all transactional data to be hosted within Nigerian borders by January 1, 2027. This mandate represents one of the country’s most significant digital transformations to date, potentially reshaping its IT infrastructure landscape.
The move aims to strengthen data sovereignty and improve regulatory oversight while keeping more financial spending within Nigeria’s economy. According to NIBSS data, electronic transaction values surged by 80% in 2024 to a record ₦1.07 quadrillion ($702 billion), with volumes reaching 11.2 billion transactions—a clear indication of the digital economy’s importance.
While the industry is largely supportive of the directive, questions remain about whether Nigeria’s data center ecosystem can meet this demand. Fortunately, significant investments in recent years have positioned the country well:
- Currently, Nigeria boasts around 26 data centers, with 18 being commercial facilities where banks and fintechs rent space
- Total live computing capacity stands at 50-56 MW, expanding to approximately 124 MW when factoring in ongoing construction projects
- Leading operators like Open Access Data Centres (OADC) have invested heavily in reliable infrastructure with Tier-III certifications and direct connections to international submarine cables
“This has been a long time coming,” said Ayotunde Coker, CEO of OADC. “We’ve spent years building world-class data centers that allow banks and other businesses to host their systems securely within Nigeria.”
The migration presents both challenges and opportunities for Nigeria’s digital economy—requiring collaboration between regulators, financial institutions, and technology providers to ensure a smooth transition while maximizing the benefits of local hosting.