Data localisation will create new investment opportunities –GB CEO

In a recent interview, Professor Ibrahim Adeyanju, the Managing Director of Galaxy Backbone, shared his perspective on Nigeria's data-localisation policy and its potential to spur investment in the country's digital infrastructure. Adeyanju believes that this directive extends far beyond a mere regulatory decision; it represents a strategic move to position Nigeria as a key player in the digital economy.

He argues that data is now one of the world's most valuable assets, particularly financial transaction data, which is highly sensitive. By keeping this data within Nigeria's borders, the country can enhance its digital sovereignty, improve regulatory oversight, and gain greater control over critical infrastructure for the economy. However, the value does not stop there; it serves as a catalyst for growth in several sectors.

According to Adeyanju, creating demand for local data hosting also generates a need for state-of-the-art data centres, cloud infrastructure, cybersecurity services, fibre connectivity, and digital skills. This, in turn, leads to increased investment, innovation, and job creation. Galaxy Backbone, a company that has always championed the importance of digital infrastructure for national development, sees this directive as a reinforcement of its vision.

The company is committed to building locally, innovating locally, and creating more value within Nigeria, while ensuring citizens and businesses have confidence in the protection of their data within the legal and regulatory framework.

Adeyanju acknowledges Nigeria's existing data centre and cloud capacity as substantial, with significant progress made in recent years. However, he emphasizes that digital infrastructure is a continuous process that requires ongoing expansion and modernisation to keep up with evolving demands. Galaxy Backbone, which offers Uptime Certified Tier III and Tier IV data centres, is also in the process of acquiring a third data centre in Lagos.

This new facility will be of world-class standard, further bolstering Nigeria's digital infrastructure capabilities.

The article also highlights Galaxy Backbone's role in supporting payment firms in meeting the new data-localisation requirements. The company is more than just a hosting provider; it is a trusted digital infrastructure partner that enables Nigeria's financial services industry to comply with regulations while delivering secure, resilient, and future-ready digital financial services.

Galaxy Backbone's sovereign cloud, PCI DSS-certified infrastructure, Tier III Data Centre, cybersecurity capabilities, and nationwide connectivity provide a solid foundation for banks, fintechs, and payment service providers to innovate with confidence, knowing their data remains secure, accessible, and within Nigeria's jurisdiction.

Beyond the immediate compliance benefits, Adeyanju envisions a myriad of economic opportunities that data localisation can bring to Nigeria's data centre, cloud computing, and digital infrastructure sectors. As more organisations host their data locally, there will be a natural increase in demand for these services, leading to the growth of a comprehensive digital value chain.

Examples of this include the Government Service Portal, which not only simplifies access to government services but also demonstrates how locally hosted digital platforms can stimulate innovation, improve service delivery, and encourage the development of complementary digital services. This, in turn, creates opportunities for Nigerian companies to build solutions, generate employment, and retain more technology investment within the country.

Some industry stakeholders have expressed concerns about potential cost increases due to local hosting. Adeyanju addresses this concern by emphasizing that while any significant technology migration requires investment, planning, and operational adjustments, the long-term benefits of data localisation far outweigh the initial costs.

Improved latency, enhanced system performance, simplified regulatory compliance, strengthened business continuity, and increased customer confidence are just a few of the tangible business advantages that come with hosting data locally. Adeyanju draws parallels between Nigeria's telecommunications sector and the current digital infrastructure landscape, pointing out that when GSM was first introduced, the cost of mobile phone ownership was prohibitively expensive for many Nigerians.

However, as investments increased, competition deepened, and infrastructure expanded, the cost of access fell significantly. This trend is expected to continue with the expansion of Nigeria's digital infrastructure.