Nigeria's Data Localisation Policy Sparks Investment Opportunities

Nigeria's data localisation policy is generating new investment opportunities for local digital infrastructure providers, but challenges such as slow implementation and funding constraints threaten compliance for financial institutions by the January 1, 2027 deadline. A survey conducted by the Central Bank of Nigeria and the National Information Technology Development Agency, presented by Dr Aminu Lawal, revealed that 41 percent of financial institutions surveyed were uncertain about meeting the deadline.

Of the 44 institutions assessed, only 26 were confident in compliance, while 15 deemed it unlikely. The survey, compiled as of October 27, 2026, indicated that only 16 percent had migrated at least one system, and 22 institutions had not started necessary changes.

Engr. Ikechukwu Nnamani, Managing Director of Digital Realty Nigeria, stated that Nigeria has the infrastructure capacity to support the transition and warned against reliance on foreign-hosted systems. The survey found that only 39 percent of institutions reported all systems covered by the requirements were hosted in Nigeria.