The Federal Government of Nigeria is planning to extend data localisation requirements to ministries, departments, and agencies (MDAs). This move comes after the financial sector's compliance deadline and aims to consolidate government technology services through cloud infrastructure. The Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa Abdullahi, disclosed this at the Executive Regulatory Dialogue on Data Localisation in Lagos.
According to Abdullahi, the government is working with the Budget Office to establish a compliance deadline for MDAs. The financial sector was prioritised due to its high level of digitisation. NITDA's analysis shows that 326 MDAs spent over N3.8 trillion on technology between June 2023 and October 2026. A significant proportion of this expenditure could be consolidated through cloud services, improving the deployment of government digital services.
Data localisation involves storing specified categories of data within a country's borders in line with applicable regulatory requirements. This approach could offer several benefits to Nigeria, including stronger control over sensitive government information and improved regulatory oversight. Keeping data within Nigeria could also help government institutions respond more effectively to security incidents and comply with data protection requirements.
The proposed extension of data localisation rules to MDAs is part of the National Sovereign Cloud Initiative (NSCI). This initiative seeks to strengthen Nigeria's control over its digital infrastructure and reduce dependence on systems that could be affected by disruptions beyond the country's borders. The initiative aligns with President Bola Tinubu's executive order designating digital infrastructure as critical national infrastructure.
The financial sector is working towards a January 1, 2027 deadline for compliance with the Central Bank of Nigeria's (CBN) payment data localisation directive. Abdullahi stated that a survey showed that 56-57% of financial institutions surveyed were ready to meet the deadline. NITDA is working with the CBN to provide guidance to institutions that have yet to complete their preparations.
The Director of the CBN's Payments System Supervision Department, Rakiya Opemi Yusuf, said the apex bank would prioritise engagement and support but warned that institutions that deliberately undermined the implementation process would face sanctions. The CBN's directive aims to strengthen national sovereignty over payment data, improve regulatory visibility, and support financial system stability.
The planned extension to MDAs would broaden the scope of Nigeria's data localisation drive beyond financial services. NITDA did not announce a specific compliance deadline for MDAs, stating that the government is working with the Budget Office to establish one. The localisation of data could support the growth of Nigeria's data centre and cloud computing industries by increasing demand for domestic infrastructure.
Key points
- The Federal Government plans to extend data localisation requirements to ministries, departments, and agencies (MDAs) following the financial sector's compliance deadline.
- The move aims to consolidate government technology services through cloud infrastructure and improve the deployment of government digital services.
- The proposed extension is part of the National Sovereign Cloud Initiative (NSCI), which seeks to strengthen Nigeria's control over its digital infrastructure.
