Galaxy Backbone woos banks after CBN directive

Galaxy Backbone, a government-owned entity, is intensifying its efforts to attract Nigerian banks, fintech companies, and other financial institutions to utilize its digital infrastructure services. This strategic push comes in response to a recent directive from the Central Bank of Nigeria (CBN) mandating that payment transaction data generated within the country must be stored on local servers.

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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 company hosted its second-quarter webinar, themed “Building Digital Trust in Nigeria’s Financial Sector: Navigating Regulatory Compliance and Infrastructure Performance.” The event brought together chief information officers from banks, fintech firms, and other technology stakeholders to discuss the growing need for secure digital infrastructure as financial institutions adapt to evolving regulatory requirements and increasing digital adoption.

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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.

The CBN's directive aims to enhance regulatory oversight, improve transparency, reduce concentration risks, and ensure that critical payment data remains within Nigeria's jurisdiction. Galaxy Backbone's Executive Director, Finance, Ibrahim Sani, emphasized the critical need for trusted digital infrastructure to support secure, reliable, and future-ready financial services in Nigeria's rapidly transforming financial sector.

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The statement read, “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.”

Galaxy Backbone positions itself as a provider of the digital backbone for both public and private sectors, including numerous financial institutions already leveraging its secure connectivity, cloud, and data center services. The organization asserts it is well-equipped to assist the industry in its compliance journey by offering resilient infrastructure that meets current and future regulatory and business demands. The Executive Director of Digital Exploration and Technical Services, Olumbe Akinkugbe, noted that compliance is essential for strengthening transparency, accountability, consumer confidence, and data security in Nigeria's digital economy.

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The statement also quoted the Executive Director, Digital Exploration and Technical Services, Olumbe Akinkugbe, as saying that 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.