CBN’s data localisation directive positions Nigeria for cloud boom, hyperscale investments — OADC

By Nonye Ngoka

Nigeria’s digital infrastructure ecosystem is entering a defining phase as the Central Bank of Nigeria’s (CBN) directive mandating financial institutions to host payment data within the country is expected to accelerate investments in hyperscale data centres, cloud infrastructure and digital services.

This was the position of the Chief Executive Officer of Open Access Data Centres (OADC), Dr. Ayotunde Coker, during a virtual media engagement on the apex bank’s recently issued data localisation directive, which requires banks, fintechs and payment service providers to localise payment data by January 1, 2027.

According to Coker, the policy is not an isolated regulatory intervention but the culmination of more than a decade of investment in Nigeria’s digital infrastructure.

“This has been a long time coming. Over the last 10 years, we’ve built the infrastructure, improved reliability and created the ecosystem required to support secure, world-class data hosting in Nigeria,” he said.

He argued that the directive sends a strong signal to global cloud providers that Nigeria is serious about data sovereignty, a development that could encourage international hyperscalers to expand their local presence while boosting indigenous cloud providers.

“The infrastructure is ready. We have world-class data centres, extensive fibre connectivity, carrier-neutral interconnection and indigenous cloud providers capable of supporting enterprise workloads. The directive reinforces Nigeria’s readiness for the next phase of digital growth,” he added.

Coker disclosed that OADC is expanding its Lagos campus to 24 megawatts while incorporating AI-ready infrastructure, including liquid cooling technology, GPU-compatible architecture and hybrid cloud capabilities to support emerging artificial intelligence workloads.

He noted that the evolution of the country’s digital infrastructure now places Nigeria among Africa’s leading data centre markets, alongside South Africa, with several operators expanding capacity to meet future demand.

Beyond OADC, he identified operators such as Rack Centre, Equinix (MainOne), Medallion Data Centre and other emerging facilities as part of Nigeria’s growing hyperscale ecosystem, stressing that current capacity and planned expansions are sufficient to support the migration of financial institutions.

Industry observers believe the policy could significantly reduce dependence on overseas cloud infrastructure for regulated financial data while encouraging greater local investment in cloud services.

Coker also pointed to the growing maturity of indigenous cloud providers, noting that Nigerian firms are increasingly delivering enterprise-grade cloud services capable of supporting mission-critical financial applications.

Beyond compliance, he described the directive as an economic catalyst capable of stimulating investments across engineering, construction, power infrastructure, cybersecurity, telecommunications and managed services.

According to him, each megawatt of data centre capacity represents an investment of roughly $10 million, with multiplier effects extending across the broader economy through job creation, supply chain development and technology transfer.

He said Nigeria has spent years developing local expertise in designing, building and operating world-class data centres, resulting in the emergence of specialised engineering firms, equipment suppliers, security providers and power solution companies serving the sector.

The localisation policy, he added, is also expected to reduce foreign exchange exposure for financial institutions that currently pay for overseas cloud services in foreign currencies while improving regulatory oversight and strengthening national digital resilience.

As artificial intelligence, cloud computing and digital financial services continue to expand, Coker believes Nigeria’s investment in digital infrastructure places it in a strong position to become West Africa’s leading digital hub.

“The foundations have been laid. The infrastructure exists. The ecosystem is growing, and this directive provides the confidence needed for the next wave of investment into Nigeria’s digital economy,” he said.

With implementation scheduled for January 1, 2027, industry stakeholders expect the coming months to witness increased investments in data centres, cloud platforms and supporting digital infrastructure as financial institutions prepare for compliance.