CBN data rule accelerates Nigeria's digital infrastructure development

This policy aims to localize data and is pushing the country's digital ecosystem into a new growth phase. Gbenga Adegbiji, Chief Executive Officer of Geniserve, highlighted that data infrastructure should be seen as a national economic asset, not just an IT concern, emphasizing the need for robust infrastructure to host, secure, and manage data. Ayotunde Coker, Chief Executive Officer of Open Access Data Centres, noted that the regulation strengthens the investment case for Nigeria's data center market by encouraging financial institutions to upgrade their systems.

However, industry executives acknowledge that reliable electricity is a critical challenge, as data centers and AI systems require continuous power. Despite Nigeria's power supply issues, Adegbiji stated that professional data center operators have developed reliable systems with backup power. The overall success of Nigeria's data localization policy and digital infrastructure expansion will depend on improvements in electricity, connectivity, cloud development, and private-sector investment.