Nigeria's CBN mandates local hosting of payment data by 2027

The Central Bank of Nigeria (CBN) has directed all financial institutions to host their payment data locally within the country by January 1, 2027. This directive aims to encourage foreign cloud providers to invest in local infrastructure and partner with established Nigerian cloud providers.

Industry experts suggest that full implementation could boost GDP, increase employment through infrastructure build-outs, and enhance the efficiency of local data centres. However, the transition faces challenges, including shortages of specialized technical talent and vulnerabilities in fibre security.

While Nigeria’s current cloud infrastructure is considered capable of supporting the migration, the scale of digital transactions—which reached N284.99 trillion in the first quarter of 2025—demands high reliability. The policy also places scrutiny on the approximately N200 billion that Nigeria’s ten largest banks reportedly spend quarterly on cloud and information technology services.