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As Nigeria moves to enforce local hosting of payment data from January 1, 2027, stakeholders in the financial services ecosystem have been urged to begin migration plans early to avoid last-minute bottlenecks and operational risks.
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The call was made by Ayotunde Coker, Chief Executive Officer of Open Access Data Centres (OADC).
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He warned that delaying preparations could undermine compliance with the Central Bank of Nigeria’s data localisation directive and disrupt critical payment systems.
CBN Directive and Nigeria’s Data Sovereignty Agenda
The directive issued by the Central Bank of Nigeria (CBN) mandates banks, fintechs, and other financial institutions to host payment data within Nigeria by 2027.
Beyond regulatory compliance, the policy is widely seen as a cornerstone of Nigeria’s data sovereignty strategy—ensuring that sensitive financial data remains under national jurisdiction.
According to Coker, hosting payment data locally will not only strengthen regulatory oversight and cybersecurity resilience, but also support job creation, skills development, and investment in Nigeria’s digital infrastructure.
“When sensitive financial data is hosted within Nigeria, it strengthens sovereignty, reduces systemic risk, and deepens trust in the digital financial ecosystem,” he said.
Early Migration Critical to Avoid Operational Risks
Speaking during a virtual media parley, Coker cautioned that the six-month window before the deadline should not encourage complacency. He noted that data migration involves complex planning, including equipment procurement timelines, system compatibility testing, and ensuring uninterrupted service delivery.
“Institutions should not wait until the last minute. Equipment lead times, system integration, and business continuity planning all take time. Delays increase operational and compliance risks as the deadline approaches,” Coker warned.
Nigeria’s Data Centre Capacity Is Ready
Addressing concerns about infrastructure readiness, Coker expressed confidence that Nigeria already has sufficient data centre capacity to absorb the anticipated influx of financial services data.
He pointed to major operators such as Rack Centre, Equinix, and Digital Realty, alongside OADC, as having significant existing capacity, with expansion plans actively underway.
“Data centres typically maintain immediate availability for clients while scaling in line with projected demand. Capacity constraints should not be an excuse for delay,” he said.
Building Infrastructure for Finance, Cloud and AI
Coker disclosed that OADC is expanding its Lagos facility to 24 megawatts, designed to support hyperscale workloads, enterprise cloud services, and emerging AI requirements, including liquid-based cooling and hybrid architectures.
“Our infrastructure is being built not just for today’s needs, but for the future of finance, cloud computing, and AI-driven services in Nigeria,” Coker explained’
The OADC boss added that similar expansion trajectories are underway across Lagos and other key hubs.
Boosting the Digital Economy Through Local Hosting
Industry analysts note that the CBN’s localisation policy will deepen Nigeria’s digital economy by keeping data value chains—storage, processing, analytics, and security—within the country. This is expected to stimulate investment in data centres, cloud services, cybersecurity, and digital skills, while reducing reliance on offshore infrastructure.
“The infrastructure is ready, the cloud providers are ready, and interconnection capacity is in place. There is no reason to delay. Financial institutions should start planning now and get the migration done,” Coker concluded.
Why It Matters
As Nigeria accelerates its push toward a resilient digital economy, local hosting of financial data represents more than regulatory compliance.
It is a strategic move to protect national data assets, strengthen trust in digital financial services, and position the country as a leading data and technology hub in Africa.
