The National Information Technology Development Agency (NITDA) and the Central Bank of Nigeria (CBN) have upped efforts at strengthening Nigeria’s digital sovereignty and financial system security with the implementation of National Sovereign Cloud Initiative.
This was disclosed at the Executive Regulatory Dialogue on the Sovereign Cloud Implementation and Data Localisation, held in Lagos.
Presenting findings from an industry survey, the Special Assistant on Digital Transformation to the NITDA Director-General, Muhammad Lawal, disclosed that 22 out of 44 financial institutions surveyed had yet to commence implementing data localisation requirements.
He explained that 26 institutions were on track to meet the January 1, 2027 deadline, while 15 expressed concerns about their readiness.
The CBN Deputy Governor, Financial System Stability, Lamido Yuguda, urged financial institutions to strengthen cybersecurity, operational resilience and risk management as they adopt domestic cloud infrastructure.
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Yuguda emphasised that data localisation alone would not guarantee security, stressing the importance of effective oversight of third-party technology providers.
“Localisation alone does not guarantee security,” he said.
Similarly, the Director-General of NITDA, Kashifu Abdullahi, said the initiative would strengthen Nigeria’s control over critical digital infrastructure, reduce dependence on foreign technology platforms and encourage investment in domestic cloud services.
Abdullahi also disclosed that 326 federal ministries, departments and agencies spent over ₦3.8 trillion on information technology between June 2023 and October 2026, highlighting the need for better coordination of government technology expenditures.
The Director of the CBN’s Payments System Supervision Department, Rakiya Yusuf, assured stakeholders of continued regulatory engagement to address implementation challenges, while warning that deliberate non-compliance could attract sanctions.
The dialogue which brought together regulators, financial institutions, fintech operators and technology service providers, reinforced the need for collaborations among regulators, financial institutions and technology providers to ensure effective implementation of data localisation and strengthening Nigeria’s digital economy.
