NITDA, CBN target local data hosting, set 2027 deadline
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NITDA, CBN target local data hosting, set 2027 deadline
By Alabidun Shuaib AbdulRahman
The National Information Technology Development Agency, NITDA and the Central Bank of Nigeria, CBN have begun moves to strengthen local data hosting and protect critical financial infrastructure, ahead of the January 1, 2027, deadline for the implementation of data localisation requirements.
The Director-General of NITDA, Kashifu Inuwa, disclosed this at an Executive Regulatory Dialogue organised by the agency in partnership with the CBN in Lekki, Lagos State.
The meeting brought together stakeholders in the financial services, telecommunications, data centre and technology sectors to discuss the implementation of the National Sovereign Cloud Initiative and measures to strengthen Nigeria’s control over its digital infrastructure.
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Inuwa said the country’s growing dependence on digital platforms made digital sovereignty a national economic security priority, particularly in the financial sector.
He warned that disruptions to digital infrastructure hosted outside Nigeria could affect banking operations, electronic payments and other essential services.
“Imagine what will happen to our economy if tomorrow a major disruption or geopolitical crisis prevents our banks from accessing critical digital infrastructure hosted outside our country. Can our citizens still transfer money? Can businesses still receive payments? Can our banks keep processing transactions? Can our economy continue functioning?” he asked.
The NITDA boss, however, said digital sovereignty did not mean isolating Nigeria from global technology or attempting to develop every technology locally.
“Digital sovereignty is not about politics. It is not about isolation. It is not about building everything ourselves, but it is about building our digital capacity to compete in the world we are today,” he said.
Inuwa cited the CBN’s cashless policy as an example of how deliberate government policies could stimulate technological development and innovation.
He said the policy encouraged financial institutions to upgrade their technology infrastructure, creating opportunities for fintech companies to develop solutions that contributed to Nigeria’s growing digital financial ecosystem.
He expressed confidence that the financial sector could again lead the country’s digital transformation through the implementation of the sovereign cloud initiative.
“Through this partnership, NITDA and CBN are working together to make sure the financial sector is the first sector to comply with our National Sovereign Cloud Initiative,” he said.
He added that NITDA would provide the policy framework and standards required for implementation, while sector regulators and industry stakeholders would work together to ensure compliance.
According to him, the initiative will be guided by principles including control, independence, resilience, risk management and freedom of choice.
Inuwa said Nigeria must develop the capacity to sustain essential digital services during external disruptions, reduce exposure to geopolitical risks and prevent excessive dependence on individual technology vendors or jurisdictions.
“Submarine cable disruption cannot automatically affect our payment system,” he said, stressing the need for resilient infrastructure that would enable critical financial operations to continue during disruptions.
He also disclosed that an assurance framework would guide the implementation process, drawing on existing international certification standards while ensuring compliance with Nigeria’s sovereign architecture requirements.
The agency is also exploring national certification options.
In his keynote address, the CBN Deputy Governor for Financial System Stability, Lamido Abubakar Yuguda, reaffirmed the bank’s commitment to strengthening financial stability, cybersecurity and the protection of critical financial data.
Yuguda said the expansion of digital payments, fintech services, mobile money and digital banking had increased the financial sector’s dependence on reliable digital infrastructure.
He urged financial institutions to strengthen cybersecurity, business continuity, disaster recovery and risk management arrangements while complying with applicable data localisation requirements and the January 1, 2027, implementation timeline for critical payment transaction data.
The deputy governor said the initiative should encourage innovation rather than isolate Nigeria from global technological developments.
“Our collective objective should be clear: to build a digital financial ecosystem that is innovative without compromising security, sovereign without becoming isolated and resilient enough to sustain public confidence,” he said.
Earlier, the Special Assistant to the NITDA Director-General on Policy, Dr Muhammad Aminu Lawal, said a pre-event survey had identified regulatory clarity, migration timelines and local infrastructure capacity as major concerns requiring attention before the deadline.
Lawal disclosed that 79 per cent of the 42 digital infrastructure and service providers surveyed said they were ready to accommodate additional financial-sector workloads, while 74 per cent said they could onboard new financial customers within three months.
He said much of the planned infrastructure expansion was expected in 2027, with financing costs, electricity supply and foreign exchange constraints identified as major challenges.
The survey recommended clear written regulatory guidance, phased or risk-based implementation milestones, a defined exceptions process and verifiable information on local infrastructure providers.
Lawal said coordinated action by NITDA, the CBN and industry stakeholders would be necessary to address implementation uncertainties, strengthen local infrastructure and ensure a smooth transition to Nigeria-based data hosting and management.
