Nigeria's NITDA targets $50 million savings through data localization
The Federal Government of Nigeria has announced that implementing a data localization policy could save approximately $50 million annually, which financial institutions currently spend to host data offshore. This policy mandates that all payment and financial transaction data generated in Nigeria must be processed and stored locally by January 1, 2027, as directed by the Central Bank of Nigeria in June 2026.
Currently, over 85% of Nigeria's IT workload is hosted on foreign cloud infrastructures. The Director-General of the National Information Technology Agency, Kashifu Inuwa Abdullahi, stated that the new framework aims to improve confidence in Nigeria's digital infrastructure and promote local capacity.
The dialogue held in Lagos involved stakeholders from the financial and fintech sectors discussing the policy's implementation challenges. Abdullahi emphasized the need for global hyperscalers and local data center operators to expand infrastructure in Nigeria, aiming to establish the country as a regional cloud hub.
Plus234Feed summary based on reporting from Daily Trust. Read the original report below.
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