Data Localisation: Banks Urged to Invest in Scalable Data Centre Infrastructure
Stories by Emma Okonji As the January 1, 2027 deadline for the migration of all payment transaction data hitherto hosted outside of Nigeria draws near, Nigerian banks have been urged
As the January 1, 2027 deadline for migrating payment transaction data currently stored outside Nigeria approaches, Nigerian banks have been urged by experts to bolster their local data center infrastructure. The Central Bank of Nigeria (CBN) has directed financial institutions and Fintech companies to shift and manage the data within Nigeria to enhance data sovereignty.
During an Executive Banking Forum organized by Arravo and CommScope, technology solutions experts discussed the implications of this new CBN regulatory framework for financial institutions and offered practical strategies to enhance their technology infrastructure.
Mr. Ayo Adegboye, CEO of Arravo, highlighted the emergence of hyperscalers, new data centers, and the scalability of existing data centers post the directive. He further explained that hyperscalers will take over some of the existing data centers in Nigeria, emphasizing the importance of Arravo's partnership with CommScope, a global leader in data center infrastructure and cabling.
Adegboye explained that CommScope, being the sole Original Equipment Manufacturer (OEM) to offer a 25-year warranty on data infrastructure cabling and installation, is crucial for supporting banks in hosting data locally and fortifying the technology infrastructure of existing data centers in Nigeria.
Data Centre Solutions Architect, Middle East and Africa at CommScope, Hans-Jürgen Niethammer, provided insights during the forum on the growing demand for reliable and high-capacity data center infrastructure due to the surge in digital transactions, especially real-time payments.
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