Investors eye Nigeria as digital infrastructure demand rises

Nigeria's digital infrastructure market is attracting significant attention from global investors, according to Professor Ibrahim Adeyanju, MD of Galaxy Backbone. This growing interest stems from the Central Bank of Nigeria's recent data localization mandate, effective January 2027, which requires financial institutions to store and process payment transaction data within Nigeria.

“

There are investors looking at Nigeria. There are hyperscalers that are interested in Nigeria because they see the opportunities in this market.

Adeyanju highlighted that this policy, coupled with escalating demand for cloud computing, artificial intelligence, and other digital services, is creating fertile ground for investment. He noted that several international hyperscalers and technology infrastructure firms have expressed interest in the Nigerian market, underscoring its potential.

The CBN's directive is anticipated to boost demand for domestic data centers and cloud services as financial entities adapt their technological frameworks. Adeyanju emphasized that Nigeria's expanding digital economy, substantial consumer base, and increasing reliance on technology position it as an attractive hub for digital infrastructure investment. "The future of the economy is digital," he stated, stressing the necessity of robust infrastructure to support advanced technologies and digital businesses.

“

The future of the economy is digital. Without the right infrastructure, you cannot support artificial intelligence, cloud computing or the growth of digital businesses.

Galaxy Backbone, a state-owned entity, is actively involved in providing connectivity and digital platforms for public institutions. Adeyanju revealed the company's strategic shift from a traditional infrastructure provider to a digital solutions company, aiming to enhance efficiency and service delivery through technology for both government and businesses. The Nigerian digital economy has seen rapid growth, fueled by expanding internet access, accelerated fintech adoption, and a broader migration of enterprise operations to cloud platforms.

“

We are moving from being an infrastructure company to a digital solutions company. The objective is to enable government and businesses to use technology to improve efficiency and deliver better services.