By Benson Daniel
Nigeria’s data localisation policy could unlock significant investment opportunities across the country’s digital economy, particularly in data centres, cloud computing, cybersecurity, fibre connectivity and digital skills, the Managing Director of Galaxy Backbone, Professor Ibrahim Adeyanju, has said.
Adeyanju said keeping sensitive financial and other critical data within Nigeria should be viewed not only as a regulatory requirement but also as a strategic opportunity to strengthen the country’s digital infrastructure and stimulate technology investment.
His comments followed the Central Bank of Nigeria’s directive requiring payment firms to host transaction data locally. The policy is expected to increase demand for secure domestic infrastructure capable of storing and processing large volumes of financial information.
According to Adeyanju, increased demand for local data hosting would create opportunities for investors to develop modern data centres, expand cloud services and provide advanced cybersecurity solutions.
He said the policy could also stimulate demand for fibre connectivity and highly skilled technology professionals, creating a wider digital value chain capable of supporting employment, innovation and economic growth.
Nigeria has made progress in developing data centre and cloud infrastructure, with both public and private sector operators investing in facilities to support the country’s expanding digital economy. However, Adeyanju said infrastructure development must continue because demand is increasing rapidly as financial technology, artificial intelligence, cloud computing and digital government services expand.
He noted that digital infrastructure should be developed ahead of demand rather than waiting until inadequate capacity becomes a constraint on economic growth.
Galaxy Backbone, he said, is positioning itself to support banks, fintech companies and payment service providers seeking to comply with data localisation requirements. The organisation provides data centre, cloud, cybersecurity and connectivity services designed to support secure digital operations.
Adeyanju also described data localisation as an important component of Nigeria’s digital sovereignty. Keeping sensitive information within the country, he said, would strengthen regulatory oversight and give Nigeria greater control over infrastructure considered critical to the economy.
Beyond financial services, he said the benefits could extend to software development, artificial intelligence, digital payments and other technology driven industries.
As more organisations are required to host their information locally, Nigerian technology companies could find new opportunities to develop products and services around data management, security, analytics and cloud computing.
The policy could also encourage more foreign and domestic investment in Nigeria’s digital infrastructure sector as companies seek to meet the growing demand for local hosting capacity.
However, the transition to local hosting could initially increase costs for some businesses. Adeyanju acknowledged that organisations would need to invest in infrastructure, migration and operational adjustments to meet the new requirements.
He argued that the long term benefits could outweigh the initial costs as increased investment drives competition, expands infrastructure and eventually improves affordability.
The experience of Nigeria’s telecommunications industry, he noted, demonstrates how investment and competition can gradually reduce the cost of technology services while expanding access.
For Nigeria, the growing emphasis on data localisation comes at a time when the digital economy is becoming increasingly important to national development.
Improved domestic infrastructure could reduce reliance on overseas data storage, strengthen cybersecurity and create opportunities for Nigerian companies to participate more actively in the digital value chain.
Adeyanju said the focus should therefore extend beyond compliance to ensuring that data localisation contributes to innovation, job creation and stronger domestic technology capacity.
With continued investment in data centres, cloud infrastructure, connectivity and digital skills, Nigeria could turn its data localisation drive into a significant source of new investment and economic opportunities.
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