By Stella Odueme
The National Information Technology Development Agency (NITDA) and the Central Bank of Nigeria (CBN) have intensified efforts to strengthen Nigeria’s digital sovereignty through the implementation of the National Sovereign Cloud Initiative (NSCI) and data localisation requirements.
The initiative is aimed at protecting critical digital infrastructure, strengthening financial system stability and reducing the country’s dependence on digital services hosted outside Nigeria.
The Director-General of NITDA, Kashifu Inuwa, disclosed this at an Executive Regulatory Dialogue organised by the agency in partnership with the CBN in Lekki, Lagos State.
According to the Director of Corporate Communications and Media Relations, Mrs. Hadiza Umar, in a statement on Thursday, the meeting brought together stakeholders from the financial services, telecommunications, data centre and technology sectors to discuss measures for strengthening Nigeria’s control over the digital infrastructure supporting its economy.
Inuwa described digital sovereignty as a national priority, noting that the growing dependence of the economy on digital platforms, particularly in the financial sector, had made the protection of critical infrastructure increasingly important.
He warned that disruptions arising from geopolitical tensions or other external factors could threaten essential financial services if Nigerian institutions remained heavily dependent on infrastructure hosted abroad.
According to him, digital sovereignty is not about isolating Nigeria from global technological developments or producing every technology locally, but about developing the capacity to make independent decisions on the infrastructure, standards and technologies critical to national interests.
“Digital sovereignty is not about politics. It is not about isolation. It is not about building everything ourselves, but it is about building our digital capacity to compete in the world we are today,” he said.
The NITDA chief cited the CBN’s cashless policy as an example of how deliberate regulatory interventions could stimulate technological innovation and economic growth.
He explained that the policy encouraged financial institutions to upgrade their technology infrastructure, creating opportunities for fintech companies to develop innovative solutions and contributing to Nigeria’s emergence as a leading fintech ecosystem.
Inuwa said the financial sector would be the first to comply with the National Sovereign Cloud Initiative through the partnership between NITDA and the CBN.
“Through this partnership, NITDA and CBN are working together to make sure the financial sector is the first sector to comply with our National Sovereign Cloud Initiative,” he stated.
He explained that NITDA would provide the policy direction and standards required to guide implementation, while sector-specific regulators would apply the framework within their respective industries.
He added that successful implementation would require cooperation among financial institutions, telecommunications operators, data centre providers, system integrators, technology companies and international cloud service providers.
Inuwa assured stakeholders that Nigeria already possessed the technological capabilities to support the initiative, adding that the government was building on existing infrastructure and international best practices.
He also disclosed that an assurance framework would guide implementation, with NITDA exploring the adoption of international certification standards alongside national certification options to ensure compliance with Nigeria’s sovereign cloud architecture.
The framework, he said, would be guided by control, independence, resilience, risk management and freedom of choice.
He added that the initiative would strengthen the country's ability to maintain essential services during external disruptions, reduce exposure to geopolitical risks and prevent excessive dependence on individual technology vendors.
Emphasising the importance of resilient infrastructure, Inuwa said submarine cable disruptions should not automatically compromise Nigeria’s payment systems.
In his keynote address, the CBN Deputy Governor in charge of Financial System Stability, Mr. Lamido Abubakar Yuguda, reaffirmed the bank’s commitment to protecting critical financial data, strengthening cybersecurity and maintaining financial system stability through the initiative.
Yuguda noted that the rapid expansion of digital payments, mobile money, fintech services and digital banking had increased the financial sector’s dependence on digital infrastructure.
He stressed the need for financial institutions to strengthen cybersecurity, business continuity, disaster recovery and risk management arrangements while complying with applicable data localisation requirements.
The deputy governor also highlighted January 1, 2027, as the implementation deadline for requirements concerning critical payment transaction data.
He maintained that the initiative should encourage innovation without isolating Nigeria from global technological advancements, calling for stronger cooperation among regulators, financial institutions and technology providers.
“Our collective objective should be clear: to build a digital financial ecosystem that is innovative without compromising security, sovereign without becoming isolated and resilient enough to sustain public confidence,” Yuguda said.
Meanwhile, the Special Assistant to the NITDA Director-General on Policy, Dr. Muhammad Aminu Lawal, identified regulatory clarity, migration timelines and local infrastructure capacity as major issues requiring urgent attention ahead of the 2027 deadline.
Presenting findings from a pre-event survey, Lawal said 79 per cent of the 42 digital infrastructure and service providers surveyed reported readiness to accommodate additional workloads from the financial sector.
He added that 74 per cent of the providers indicated they could onboard new financial-sector customers within three months.
However, he noted that much of the planned infrastructure expansion was expected to take place in 2027, while financing costs, electricity supply and foreign exchange challenges remained significant constraints.
The survey recommended clear written regulatory guidance, phased or risk-based implementation milestones, a defined process for granting exceptions and verifiable information on local infrastructure providers capable of meeting the required standards.
Lawal said the findings underscored the need for coordinated action by NITDA, the CBN and industry stakeholders to address implementation challenges, expand domestic digital infrastructure and facilitate a smooth transition to data hosting and management within Nigeria.
The partnership is expected to strengthen the country's control over critical digital assets while supporting a secure, resilient and competitive financial technology ecosystem.