The Central Bank of Nigeria (CBN) has emphasized the importance of data localisation, describing it as a fundamental pillar of national economic security and digital sovereignty. The apex bank has rallied financial, fintech, and payment sector players to ensure compliance with its directive, which requires the local storage and management of payment transaction data. This move aims to catalyse local infrastructure investment and drive demand for domestic data centres, technology talent, and cloud service providers.
The CBN has set a deadline of January 1, 2027, for full compliance with its directive on data localisation. The apex bank's Director, Payments Systems Supervision Department, Dr Rakiya Opemi Yusuf, disclosed this during the 'CloudReady Nigeria Financial Services Roundtable' in Lagos. Yusuf emphasized that the regulator's task is to ensure the effective implementation of its directive, which requires payment transaction data generated within Nigeria to be stored and managed locally.
Dr Yusuf advised affected institutions to immediately commence data migration and localisation if they had not already done so, to meet the deadline. She also stressed the need for a complete data audit, classification, and local architecture to ensure compliance. The CBN circular of June 15, 2026, requires payment transaction data generated within Nigeria to be stored and managed in Nigeria, with full compliance set for January 1, 2027.
The National Commissioner and Chief Executive Officer, Nigeria Data Protection Commission (NDPC), Dr Vincent Olatunji, stressed the need to protect Nigeria's data hosted outside the country. He described the situation as economically unstable, unsustainable, and strategically vulnerable, noting that Africa accounts for less than one per cent of global data centres. Olatunji emphasized the Federal Government's national mandate to transition Nigeria into a globally competitive hub for digital infrastructure, local skills, and cloud exports.
Executive Director, Africa Hyperscalers, Temitope Osunrinde, noted that Nigeria has taken critical steps towards strengthening digital sovereignty through policies, including the National Cloud Policy, National Sovereign Cloud Policy, Nigeria Data Protection Act, and CBN regulations. These policies aim to promote local data storage and management, reducing reliance on foreign data centres and promoting economic growth.
The CBN's insistence on full compliance without further extensions underscores its commitment to data localisation. The apex bank's move is expected to drive demand for domestic data centres, technology talent, and cloud service providers, ultimately contributing to Nigeria's economic growth and digital sovereignty. Affected institutions are expected to take immediate action to ensure compliance with the January 1, 2027 deadline.
The implementation of the CBN's directive on data localisation is expected to have a significant impact on Nigeria's digital economy. With a complete data audit and local architecture in place, institutions can ensure the secure storage and management of payment transaction data, reducing the risk of data breaches and promoting national economic security. The CBN's commitment to data localisation is a step towards achieving a globally competitive digital infrastructure in Nigeria.
Key points
- The Central Bank of Nigeria has set a deadline of January 1, 2027, for full compliance with its directive on data localisation.
- The CBN's move aims to catalyse local infrastructure investment and drive demand for domestic data centres, technology talent, and cloud service providers.
- The implementation of the CBN's directive is expected to contribute to Nigeria's economic growth and digital sovereignty.
