CBN Data Localisation Deadline Tests N200bn Bank Cloud Spending, Talent, Fibre
Nigeria's cloud infrastructure has enough capacity to support banks' migration of payment data under the CBN's localisation deadline.
In Brief
- •Nigeria's cloud infrastructure has enough capacity to support banks' migration of payment data under the CBN's localisation deadline.
- •The N200 billion spent quarterly by Nigeria's 10 largest banks on cloud and IT services is under scrutiny as they assess the cost and reliability of localising more workloads.
- •Shortages of specialised talent and weaknesses in fibre security could complicate the transition to local infrastructure.
- •Nigeria's electronic payment transactions reached N284.99tn in Q1 2025, a 17.7% increase from a year earlier, highlighting the growing volume of financial data that local infrastructure must support.
- •Specialised migration expertise is a major requirement, with professionals handling migration projects urged to be certified.
Why It Matters
The CBN's data localisation deadline is testing Nigeria's cloud infrastructure and financial institutions' readiness. The N200 billion spent on cloud and IT services is a significant investment that could be impacted by the transition. The growing volume of electronic payment transactions underscores the importance of reliable local infrastructure. The shortage of specialised talent and weaknesses in fibre security could have broader implications for Nigeria's digital payments ecosystem.
Key Details
- Quarterly Cloud and IT Spending
- N200 billion
- Q1 2025 Electronic Payment Transactions
- N284.99tn
- Year-on-Year Increase in Payment Transactions
- 17.7%
- NIMC National Identity Database Records
- 140 million
- NIMC Biometric Records
- 100 million
Context & Background
The CBN's data localisation policy aims to reduce Nigeria's reliance on foreign cloud providers and enhance data security. The policy has been in development for some time and is part of a broader effort to strengthen Nigeria's digital infrastructure.
Original Reporting & Sources
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