CBN's Data Rule Boosts Demand for Local Data Centers

The Central Bank of Nigeria (CBN) has implemented a new data localization rule that requires banks and fintech companies to store payment transaction data generated within Nigeria on local servers. This directive is expected to drive demand for data centers and cloud platforms, as the country prepares for a new phase of growth in its digital infrastructure ecosystem.

Gbenga Adegbiji, Chief Executive Officer of Geniserv, stated that the localization of data is not merely a regulatory issue but also depends on the availability of supporting infrastructure, including data centers and cybersecurity systems. He highlighted the critical need for reliable electricity, as Nigeria's current power generation capacity remains below installed capacity.

The country has faced challenges such as gas supply constraints and transmission limitations, which affect the reliability of electricity supply. Adegbiji noted that Nigeria's data centers must be designed to operate within the country's environment, utilizing backup power systems to maintain reliability.