Nugi Warns of Data Centre Crisis from CBN Localisation Directive

Nugi, a representative from the data centre industry, expressed concerns regarding the Central Bank of Nigeria's (CBN) directive on data localisation, stating it may trigger a capacity crisis. He noted that Nigeria lacks sufficient data centre capacity to manage the growing volume of data generated, with existing facilities already at capacity.

Nugi highlighted the importance of reliability in data centres, pointing out that system failures can disrupt transactions. He advocated for Tier IV infrastructure, which offers redundancy and fault tolerance.

Currently, data centres are concentrated in a few locations across Nigeria, which poses a risk to critical digital infrastructure. Nugi indicated that the three-month timeline for migration could be challenging for banks and fintechs, as they must consider cybersecurity and operational risks.

He suggested a phased approach to migration, emphasizing the need for proper testing and infrastructure readiness to support increased workloads.