CBN data localisation raises skills, security concerns
Experts say Nigeria has enough data-centre capacity for the CBN’s data localisation rule but warn of skills shortages and fibre security risks. Read More: https://punchng.com/cbn-data-localisation-raises-skills-security-concerns/
Nigeria's Central Bank of Nigeria (CBN) has introduced a data localisation requirement that mandates financial institutions and payment operators to store and manage transaction data within the country. This move, announced by the Payments System Supervision Department of the CBN, comes with a deadline of January 1, 2027, and has raised concerns about both skills and security.
At a recent roundtable discussion in Lagos, industry executives and government officials acknowledged that Nigeria's data-centre infrastructure has sufficient capacity to meet the new rule. However, they also highlighted potential challenges, including a shortage of specialized talent, pricing pressures, and the security of fibre infrastructure.
Ayobami Olajide, Head of Research at Kickoff Africa and moderator of the session, emphasized that the migration process must be treated with high standards, as a one percent failure rate is unacceptable. Fola Olatunji-David, Technical Adviser to the CEO at the National Identity Management Commission (NIMC), rejected the notion that the rule has outpaced the market, citing the country's large-scale adoption of electronic payment transactions and the importance of localised databases for service quality.
Cloud providers like MTN Nigeria are offering support to organizations during the transition, including discounted services and extended periods for refactoring applications. However, the CBN also urged for certified migration personnel to ensure the process is handled correctly. The technical demands of migration go beyond simply moving data to local servers, as applications may need to be redesigned to accommodate local infrastructure.
Financial institutions have already begun the process, with some successfully migrating away from foreign cloud platforms to reduce costs and latency. Despite these efforts, a significant concern remains the protection of fibre networks and data-centre infrastructure from vandalism, as this new oil must be safeguarded with the same vigilance as traditional assets.
Written by urgent.news from Punch Nigeria's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
