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🇳🇬 Nigeria /Economy & Trade

Data Localization Will Create New Investment Opportunities, Says Galaxy Backbone CEO

From The Punch · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

Interview Named sources Context piece
  • Nigeria's data localization policy is expected to spur significant investment in data centers, cloud services, cybersecurity, and digital skills, according to Galaxy Backbone CEO Professor Ibrahim Adeyanju.
  • The policy strengthens Nigeria's digital sovereignty, improves regulatory oversight, and enhances control over critical economic infrastructure.
  • While Nigeria has made progress in data center capacity, continuous expansion and modernization are necessary to meet rapidly evolving demand.

Nigeria's new data localization policy is poised to unlock substantial investment opportunities across the digital infrastructure landscape, according to Professor Ibrahim Adeyanju, Managing Director of Galaxy Backbone. He views the Central Bank of Nigeria's directive for payment firms to host transaction data locally as a pivotal strategic move for Nigeria's digital economy.

"Keeping that data within Nigeria strengthens our digital sovereignty, improves regulatory oversight and gives us greater control over infrastructure that is critical to our economy," Adeyanju explained. He believes the policy will act as a catalyst, driving demand for world-class data centers, cloud infrastructure, cybersecurity services, fiber connectivity, and digital skills. This, in turn, is expected to translate into significant investment, innovation, and job creation within the country.

I believe this is much bigger than a regulatory directive. It is a strategic statement about where Nigeria wants to position itself in the digital economy.

— Professor Ibrahim AdeyanjuManaging Director of Galaxy Backbone, on the impact of the CBN's data localization directive.

Adeyanju acknowledged Nigeria's progress in developing its digital infrastructure, noting a growing ecosystem of modern data centers and cloud providers supported by both public and private sector investments. However, he stressed that digital infrastructure requires continuous development due to rapidly evolving demand, fueled by fintech innovation, artificial intelligence, cloud adoption, and the digitization of government services.

Keeping that data within Nigeria strengthens our digital sovereignty, improves regulatory oversight and gives us greater control over infrastructure that is critical to our economy.

— Professor Ibrahim AdeyanjuManaging Director of Galaxy Backbone, explaining the benefits of data localization.

Galaxy Backbone itself is actively expanding its capacity, with Uptime Certified Tier III and Tier IV data centers available for banks and fintechs. The company is also in the process of acquiring a third world-class data center in Lagos. Adeyanju emphasized the importance of building infrastructure ahead of demand to prevent it from becoming a constraint on growth.

He reiterated that Galaxy Backbone's mission is to provide secure and reliable digital infrastructure, reinforcing the government's vision for digital sovereignty. The policy encourages local development and innovation, assuring citizens and businesses that their data is protected under Nigeria's legal and regulatory framework.

The real opportunity is to keep building ahead of demand rather than waiting for infrastructure to become a constraint.

— Professor Ibrahim AdeyanjuManaging Director of Galaxy Backbone, on the strategy for digital infrastructure development.
DistantNews Editorial

Originally published by The Punch in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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