OADC: CBN’s Directive on Data Localisation Will Attract Foreign Investments
Emma Okonji The Chief Executive Officer of Open Access Data Centres, Ayotunde Coker, has said the directive given by the Central Bank of Nigeria (CBN), mandating all financial institutions to
The Central Bank of Nigeria (CBN) has issued a directive mandating all financial institutions to host their data locally in Nigeria by January 1, 2027. This directive, according to Ayotunde Coker, CEO of Open Access Data Centres, will attract foreign direct investments to Nigeria. Coker believes that foreign cloud providers currently hosting Nigerian data abroad will face losses of customers if they do not invest in Nigeria and partner with established local cloud providers.
Currently, some banks and financial institutions run their core banking applications and sensitive data on clouds located outside Nigeria. These foreign hosting arrangements are seen by Coker as negating Nigeria's sovereignty and posing significant security risks, which contravene the Nigerian Data Protection Act. While some financial institutions may return a fraction of their data to Nigeria out of compliance, Coker advises them to begin planning for the necessary processes and risks associated with the CBN directive, seeking expert clarification where needed to ensure a smooth compliance process.
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