FG’s Galaxy Backbone woos banks after CBN data localisation directive

Galaxy Backbone, a government-owned entity, is intensifying its outreach to banks, fintech companies, and other financial institutions, aiming to secure them as clients for its digital infrastructure services. This strategic push follows a recent directive from the Central Bank of Nigeria (CBN) that mandates the local storage of payment transaction data generated within the country.

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The policy is intended to strengthen regulatory oversight, improve transparency, reduce concentration risks and ensure that critical payment data remains within the country’s jurisdiction.

The CBN's directive requires financial institutions, including banks, fintechs, and mobile money operators, to house critical payment data on servers within Nigeria. The central bank stated this policy aims to enhance regulatory oversight, boost transparency, mitigate concentration risks, and ensure that sensitive payment information remains under national jurisdiction.

Galaxy Backbone recently hosted a webinar themed “Building Digital Trust in Nigeria’s Financial Sector: Navigating Regulatory Compliance and Infrastructure Performance.” The event brought together chief information officers from various financial and technology firms to discuss the growing need for secure digital infrastructure. Ibrahim Sani, Galaxy Backbone’s Executive Director of Finance, emphasized the importance of trusted digital infrastructure to support the financial sector's rapid transformation and evolving regulatory landscape.

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He noted that Galaxy Backbone continues to provide the digital backbone that supports both public and private sector institutions, including several financial institutions that already rely on its secure connectivity, cloud and data centre services.

During the webinar, Olumbe Akinkugbe, Executive Director of Digital Exploration and Technical Services, highlighted that compliance with CBN directives is crucial for strengthening transparency, accountability, and consumer confidence in Nigeria's digital economy. Thomas Oghenebhumhe, Head of Automation and Integration, showcased Galaxy Backbone’s sovereign cloud capabilities, explaining how its resilient infrastructure can help financial institutions innovate, improve efficiency, protect data, and meet regulatory standards.

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compliance with CBN directives and other regulatory frameworks was essential to strengthening transparency, accountability, consumer confidence and the security of financial data in Nigeria’s increasingly digital economy.