By 
By Osasome C.O
GBB positions sovereign cloud, Tier III & IV data centres as trusted infrastructure for Nigeria’s evolving financial ecosystem
The Central Bank of Nigeria’s new directive requires all payment transaction data generated in the country to be hosted on local servers. In preparation, Galaxy Backbone (GBB) has intensified strategic engagements with Chief Information Officers, commercial banks, fintech companies, and technology leaders. These engagements are designed to accelerate the deployment of secure, sovereign digital infrastructure that meets regulatory requirements and supports sector growth.
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The initiative reinforces Galaxy Backbone’s growing role as a national digital infrastructure provider, supporting regulatory compliance, data sovereignty, cybersecurity and business continuity across Nigeria’s rapidly expanding digital financial ecosystem.
The engagement formed the centrepiece of the organisation’s second-quarter industry webinar themed “Building Digital Trust in Nigeria’s Financial Sector: Navigating Regulatory Compliance and Infrastructure Performance.”
Hot on the heels of its 20th anniversary and corporate rebranding, Galaxy Backbone is signalling a strategic shift. The organisation is evolving from a government ICT provider into a digital transformation enabler for both public and private sectors.
CBN’s Local Data Hosting Policy Reshapes Financial Infrastructure
The discussions were driven by the Central Bank of Nigeria’s directive requiring banks, payment service providers, fintech companies and mobile money operators to retain payment transaction data generated within Nigeria on locally hosted infrastructure.
The policy is designed to strengthen:
- Regulatory oversight
- National data sovereignty
- Consumer data protection
- Financial sector resilience
- Operational transparency
- Reduced dependence on offshore infrastructure
The directive also enables regulators and law enforcement agencies to access financial records more efficiently while reducing concentration risks associated with foreign cloud hosting.
Galaxy Backbone Offers Sovereign Digital Infrastructure for Compliance
Speaking during the webinar, Executive Director, Finance, Ibrahim Sani, said Nigeria’s financial sector is undergoing unprecedented digital transformation, making trusted infrastructure critical to sustaining innovation and customer confidence.
He noted that Galaxy Backbone already provides secure connectivity, cloud computing and enterprise data centre services to several public and private institutions, positioning the organisation to support banks and fintechs as they transition towards full regulatory compliance.
According to him, resilient digital infrastructure has become indispensable for delivering secure, reliable and future-ready financial services.
Compliance Now Central to Digital Trust
Executive Director, Digital Exploration and Technical Services, Olumbe Akinkugbe, emphasised that regulatory compliance has become one of the strongest pillars supporting trust within Nigeria’s digital financial ecosystem.
He explained that adherence to CBN regulations and other digital governance frameworks enhances transparency, accountability, customer confidence and the overall security of financial information.
Akinkugbe observed that financial institutions must increasingly align technology investments with evolving regulatory expectations to safeguard both customers and national digital assets.
Sovereign Cloud Emerges as Strategic Asset
Galaxy Backbone’s Head of Automation and Integration, Thomas Oghenebhumhe, highlighted the growing importance of sovereign cloud infrastructure in helping financial institutions modernise operations while remaining compliant with domestic regulations.
He demonstrated how locally hosted cloud platforms enable banks and fintech firms to:
- Accelerate digital innovation
- Improve operational efficiency
- Protect sensitive customer information
- Meet regulatory obligations
- Strengthen cyber resilience
- Enhance business continuity
His presentation generated extensive discussions around cloud migration strategies, compliance requirements and the future of data sovereignty within Nigeria’s financial services sector.
Enterprise Data Centres Support Mission-Critical Financial Services
Samuel Olusola Oyeleke, Head of Data Centre Operations, presented Galaxy Backbone’s globally certified Tier III and Tier IV data centre infrastructure. He characterised the facilities as a resilient platform tailored for mission-critical operations. The infrastructure, he emphasised, is designed for high availability and uninterrupted service delivery.
According to him, the facilities provide critical capabilities including:
- Disaster recovery
- Business continuity
- High system availability
- Enterprise-grade resilience
- Secure hosting environments
These capabilities are increasingly becoming essential as banks migrate sensitive financial workloads to locally hosted infrastructure.
Building Digital Trust Requires Industry Collaboration
Closing the webinar, Executive Director, Customer Centricity and Marketing, Hon. Olusegun Olulade, stressed that regulatory compliance alone is insufficient without sustained collaboration among regulators, technology providers and financial institutions.
He said organisations must invest in infrastructure capable of delivering security, resilience, reliability and customer confidence as digital banking continues to expand.
Olulade reaffirmed Galaxy Backbone’s commitment to providing financial institutions with trusted digital platforms that enable innovation while satisfying increasingly stringent regulatory requirements.
GBB Strengthens Value Proposition for Financial Institutions
Galaxy Backbone said its expanding portfolio of enterprise infrastructure positions it as a preferred technology partner for Nigeria’s financial services industry.
Its offerings include:
- Uptime Institute-certified Tier III and Tier IV Data Centres
- PCI DSS-certified payment security infrastructure
- Sovereign cloud services
- Nationwide fibre-optic backbone
- Enterprise cybersecurity services
- Managed ICT services
- Disaster recovery solutions
- Business continuity platforms
Collectively, these capabilities enable banks, fintech companies and payment service providers to securely host sensitive financial information within Nigeria while meeting both regulatory and operational requirements.
Banks Increase Technology Investments
The industry’s infrastructure transition comes amid growing investments in digital resilience.
Commercial banks collectively spent approximately ₦177.91 billion on information technology infrastructure during the first quarter of 2026, representing a significant year-on-year increase as institutions strengthen cybersecurity, local data storage and digital service delivery.
Meanwhile, the Central Bank has directed that the costs associated with local data migration should not be transferred to customers, encouraging operators to absorb implementation costs while improving service quality.
Galaxy Backbone Expands Role in Nigeria’s Digital Economy
With more than two decades of delivering mission-critical ICT infrastructure, Galaxy Backbone continues to strengthen its position as Nigeria’s foremost provider of shared digital infrastructure.
The organisation’s nationwide fibre network, sovereign cloud platforms, cybersecurity services, and enterprise data centres now underpin an expanding client ecosystem.
This ecosystem includes government institutions, financial organisations, and private enterprises. They are all seeking secure, scalable, and regulation-compliant digital services.
The latest engagement with banking and fintech stakeholders further demonstrates the organisation’s strategic role in supporting Nigeria’s ambition to build a resilient, secure and globally competitive digital economy.
