OADC: CBN Directive on Local Data Hosting Will Protect Nigeria’s Data Sovereignty

Nigeria's financial sector is set to undergo a significant shift with the Central Bank of Nigeria's (CBN) directive mandating the local hosting of payment data. Effective January 1, 2027, financial institutions and Fintech companies must store their data within Nigeria, a move hailed as vital for safeguarding the nation's data sovereignty.

Open Access Data Centres (OADC) CEO, Dr. Ayotunde Coker, welcomed the CBN's decision, emphasizing its role in protecting Nigeria's data sovereignty. He stated that the directive was long anticipated, given the existing robust infrastructure and capacity within Nigerian data centers. "OADC has built a strong data centre infrastructure that will enable banks to become much more agile," Coker said.

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OADC has built a strong data centre infrastructure that will enable banks to become much more agile.

Coker expressed confidence in the readiness of Nigeria's data centers to accommodate the new requirements without glitches. He highlighted OADC's ongoing expansion, including a phase two build-out to 24 megawatts, designed to support hyperscale density and specific AI needs like liquid-based cooling. "I’m confident that we have the data center capacity to meet that data sovereignty requirement, and the build-out trajectory that we have around the Lagos area is significant," he added, noting that South Africa also has substantial build capacity.

The directive is expected to not only bolster data security but also stimulate job creation within the technology and data management sectors. By keeping sensitive data within national borders, Nigeria aims to enhance control over its digital assets and foster local expertise in data handling and infrastructure management.

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I’m confident that we have the data center capacity to meet that data sovereignty requirement, and the build-out trajectory that we have around the Lagos area is significant.