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The Federal Government has launched the National Digital Cloud Policy, setting an ambitious target of attracting $750 million in private investment into Nigeria’s cloud and data infrastructure over the next 24 months.
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The policy, unveiled by the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, is designed to accelerate investment in data centres, cloud computing, artificial intelligence infrastructure and digital services, while positioning Nigeria as a major technology and hosting hub for West Africa and the wider African market.
The Federal Government is targeting an initial $250 million in private capital within the first 12 months of the policy’s implementation.
Nigeria Eyes Shift from Cloud Consumer to Regional Digital Hub
Announcing the policy in Abuja, Tijani said cloud and data infrastructure had become critical economic infrastructure supporting a growing range of sectors, including artificial intelligence, financial services, healthcare, education, commerce and digital government.
He said Nigeria must leverage its large domestic market, expanding broadband infrastructure, international connectivity and growing technology talent base to attract investment and increase its capacity to export digital services.
“Nigeria must move from being primarily a consumer of global cloud infrastructure to becoming a competitive location for the infrastructure, investment, skills and digital services that will define the next phase of the global digital economy,” Tijani said.
The policy represents part of a broader effort to position Nigeria not merely as a market for global technology services, but as a location where cloud infrastructure can be built, operated and used to serve customers across Africa.
Four Priorities to Drive Nigeria’s Cloud Economy
The National Digital Cloud Policy is built around four interconnected strategic priorities aimed at expanding infrastructure, attracting investment and strengthening the country’s digital economy.
1. Investment and Market Development
The first pillar focuses on creating a predictable and competitive environment capable of attracting domestic and international investment into data centres and cloud infrastructure.
According to Tijani, the policy is designed to maintain an open market in which Nigerian and international cloud providers can compete and invest.
“Our approach is deliberately open and investment-oriented. We want Nigerian and international providers to invest, build capacity, develop talent and serve both the Nigerian market and the wider African continent from Nigeria,” he said.
The policy is expected to encourage greater private-sector participation in building the infrastructure required to support cloud services, data processing and AI workloads.
2. Positioning Nigeria for Regional Digital Services Exports
A second priority is to establish Nigeria as a regional hub for digital services, hosting and interconnection.
The government believes Nigeria’s large market, improving international connectivity and geographical position could support the development of a stronger regional cloud ecosystem serving customers across ECOWAS and sub-Saharan Africa.
The objective is to enable companies operating from Nigeria to provide cloud, hosting and other digital services beyond the domestic market.
This could also help retain a greater share of technology spending within the local economy while creating opportunities for Nigerian engineers, developers, cybersecurity professionals and other technology specialists.
3. Government Adopts Cloud-First Strategy
The policy also seeks to accelerate the Federal Government’s transition towards cloud-based digital services.
Under the proposed framework, Ministries, Departments and Agencies will adopt a Cloud First approach when developing and modernising their digital systems.
The government also plans to aggregate cloud requirements across MDAs to reduce duplication and strengthen its negotiating position with service providers.
Pooling government demand could allow public institutions to secure better commercial terms while improving the efficiency of government technology spending.
A National Digital Marketplace is also expected to be introduced as part of the policy’s implementation, creating a framework for coordinated procurement of cloud and digital services.
Priority government systems are expected to be progressively migrated under the new cloud transformation framework.
4. Digital Sovereignty and Data Security
The fourth pillar focuses on digital sovereignty and security.
Tijani said the policy seeks to strike a balance between protecting Nigeria’s most sensitive digital assets and maintaining an open environment capable of attracting investment.
“The National Digital Cloud Policy therefore provides a balanced framework; one that promotes investment and competition, strengthens indigenous capability, modernises Government and applies sovereignty requirements only where they are genuinely necessary,” he said.
Under the proposed framework, public data will be classified into four security tiers.
Highly sensitive or classified government information will be required to reside on local physical infrastructure, while other categories of commercial data will not face blanket data localisation requirements.
The approach is intended to protect sensitive national assets without creating unnecessary barriers for cloud providers and businesses operating across borders.
$750 Million Investment Target in 24 Months
The Federal Government has outlined a 24-month implementation roadmap for the policy.
Months 1 to 6: Policy Activation
The first phase will focus on establishing governance mechanisms, conducting infrastructure and asset baseline audits and facilitating private-sector investment.
The government will also work towards establishing the institutional and regulatory structures required to support implementation.
Months 6 to 12: Operationalisation
The second phase will focus on moving the policy from framework to practical implementation.
Key activities are expected to include the launch of the National Digital Marketplace and the commencement of priority data and systems migration by participating MDAs.
The government is targeting $250 million in private investment during the first 12 months.
Months 12 to 24: Infrastructure Expansion and Digital Exports
The final phase will focus on scaling cloud infrastructure, expanding participation to state governments and strengthening regional interconnection.
Nigeria also plans to increase its capacity to export cloud and digital services to other African markets.
By the end of the 24-month period, the Federal Government hopes to have attracted $750 million in private capital into cloud and data infrastructure.
Project BRIDGE, 3MTT to Support Cloud Infrastructure Push
The National Digital Cloud Policy is also linked to several existing government technology initiatives.
One of them is Project BRIDGE, which aims to support the expansion of Nigeria’s broadband infrastructure through the deployment of 90,000 kilometres of open-access fibre-optic cables.
Improved fibre connectivity is expected to provide part of the underlying infrastructure needed for data centres, cloud services and AI computing capacity.
The policy also connects with the 3 Million Technical Talent (3MTT) programme, which is expected to help build the specialised workforce required to support Nigeria’s growing digital infrastructure.
The government will require more professionals with expertise in cloud computing, data engineering, cybersecurity, artificial intelligence and infrastructure management as investments in the sector expand.
NITDA, Galaxy Backbone and BPP to Play Key Roles
Several government institutions have been identified as central to the implementation of the cloud policy.
The National Information Technology Development Agency (NITDA) is expected to play a key role in developing regulatory standards and supporting the policy’s technology governance framework.
Galaxy Backbone Limited will support the operation of shared public cloud infrastructure and services for government institutions, while the Bureau of Public Procurement will help ensure compliance with applicable public procurement requirements.
The involvement of multiple institutions reflects the scale of the government’s cloud transformation ambitions and the need to coordinate infrastructure, regulation, skills development, cybersecurity and public-sector technology spending.
Building Nigeria’s AI and Digital Infrastructure Economy
The launch of the National Digital Cloud Policy comes as demand for cloud infrastructure is being reshaped by the rapid growth of artificial intelligence, digital financial services, e-commerce, online platforms and government digitisation.
AI, in particular, is increasing demand for computing infrastructure capable of processing and storing large volumes of data.
For Nigeria, the policy could provide a framework for attracting investments not only into traditional data centres but also into the infrastructure required to support advanced computing and AI-enabled services.
If successfully implemented, the policy could help reduce Nigeria’s dependence on overseas cloud infrastructure while creating opportunities for technology companies to build services for the domestic and regional markets.
The broader ambition is clear: to transform Nigeria from a major consumer of digital infrastructure into a more significant producer, host and exporter of cloud-based services.
With a $750 million private investment target, a Cloud First approach for government and a growing focus on AI computing capacity, the National Digital Cloud Policy could become an important component of Nigeria’s strategy to build the infrastructure required for the next phase of its digital economy.
