CBN data localisation raises skills, security concerns

Nigeria’s Central Bank of Nigeria (CBN) has mandated financial institutions to store and manage payment transaction data locally, starting January 1, 2027. This data-localisation requirement has been met with both praise and concerns from industry executives and government officials. While the infrastructure appears capable of handling the demand, several challenges remain, such as shortages of specialised talent, pricing pressures, and the security of fibre infrastructure.

At a recent roundtable discussion in Lagos, experts highlighted the need for meticulous examination of data storage, processing, and backup locations. While most cloud providers in the country are operating at full capacity, the NIMC’s localised national identity database, which holds over 140 million records, demonstrates the feasibility of the approach.

Cloud providers are also stepping in to support organisations during the transition, offering migration assistance and expanding their cloud marketplaces. However, technical challenges persist, as applications may need to be redesigned to accommodate local infrastructure. Additionally, the protection of fibre networks and data-centre infrastructure from vandalism is a significant concern, as data has become the new oil.