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Telecom body backs January 2027 deadline for local data storage, citing forex savings, data sovereignty, and existing Tier III data centre capacity.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has publicly endorsed the Central Bank of Nigeria’s (CBN) directive requiring all banks and fintech companies to store and manage payment transaction data locally on servers within Nigeria by January 1, 2027.
RELATED: CBN orders local storage of payment data from 2027, tightens oversight of Nigeria’s digital payments ecosystem
The telecommunications body highlighted several key benefits for the Nigerian economy and the financial sector, including lower forex exposure, enhanced data sovereignty, and the utilisation of existing local infrastructure capacity.
CBN Mandate Requires Local Data Storage by 2027
The CBN directive mandates that all payment transaction data generated by banks and fintech companies must be stored and managed on servers physically located within Nigeria’s borders by the beginning of 2027.
The policy aims to tighten regulatory oversight, enhance national data security, and make the local digital payments ecosystem significantly more resilient.
Forex Exposure and Cost Savings
Reacting to the development, ALTON Chairman, Mr. Gbenga Adebayo, stated that the directive would significantly reduce the dependence of banks and fintech companies on foreign-hosted infrastructure, thereby cutting their exposure to exchange rate volatility and reducing capital flight.
Adebayo noted that many operators currently pay for cloud services, data storage, and hosting infrastructure in foreign currencies—a situation that places pressure on their operational costs whenever the naira weakens against major international currencies.
“When data is hosted locally, operators are no longer compelled to make huge foreign currency payments for offshore hosting services. This will substantially reduce forex exposure for banks and fintechs while strengthening local capacity,” he said.
Data Sovereignty and Security
The ALTON chairman also described the move as a strategic step towards achieving data sovereignty, stressing that sensitive financial information generated within the country should remain under Nigerian jurisdiction.
“Critical payment data generated in Nigeria should reside in Nigeria. This improves regulatory visibility, strengthens security oversight, and ensures that local laws govern the management of such information,” he stated.
Stronger Local Infrastructure
Adebayo confirmed that Nigeria already has approximately six Tier III data centres with ample capacity to host this data, including existing foreign clients. He added that the policy would encourage greater investment in Nigeria’s data centre ecosystem and telecommunications infrastructure.
“Beyond the forex savings, the directive will drive investments in local data centres, create jobs, deepen digital infrastructure, and improve the overall resilience of the financial services sector,” Adebayo stated.
