Business Leaders Stress Importance of Data Localisation in Nigeria

Segun James

Business leaders and stakeholders have stressed the importance of data localisation in strengthening data security, protecting national interests, and building a resilient digital economy in the country.

This was the conclusion at the CIO & C-Suite Conference and Awards Africa, held in Lagos yesterday, where industry leaders, technology executives and other stakeholders examined the policy, prospects and challenges of keeping data within national borders while sustaining innovation and global competitiveness.

The Director, Payments System Supervision Department of the Central Bank of Nigeria (CBN), Mrs. Rakiya Yusuf, said data localisation had become critical as digital payments, e-commerce, cloud computing and artificial intelligence continued to transform economic activities.

She said: “Across the world, data has become a strategic asset and a critical enabler of economic activity.”

She reaffirmed the CBN’s circular, which directed financial institutions and participating payment service providers to ensure that relevant payment data and associated assets are stored and managed in Nigeria, with a compliance deadline of January 1, 2027.

According to her, the policy is intended to protect sensitive information, improve regulatory oversight and strengthen the resilience of Nigeria’s financial system.

“Data localisation is ultimately about trust. It is about sovereignty and resilience. Trust that Nigeria’s payment data is protected. Sovereignty over a strategic national asset,” she said.

Yusuf, however, acknowledged challenges associated with implementation, including unreliable power supply, inadequate data centres, connectivity gaps, cybersecurity requirements and increased operational costs.

She also warned that poorly designed localisation policies could create barriers to innovation and competitiveness, calling for a balanced and forward-looking regulatory framework.

The discussions, including panel sessions, were centred on the need for African countries to strengthen control over their data, improve cybersecurity and develop local digital infrastructure without undermining cross-border business and investment.

Also speaking, the Group Strategy Officer of NGX Group, Mrs. Jumoke Olaniyan, who represented the Group Managing Director and Chief Executive Officer, Mr. Temi Popoola, said effective data governance was essential to investor confidence and economic growth.

“The difference is not technology; it’s trust, and trust has a price,” Olaniyan said, explaining that weak information governance could increase perceived risks, discourage investors, and make access to capital more difficult for African businesses.

She maintained that data strategy should be treated as a core business consideration, rather than merely a technology or regulatory issue.

“The desire for digital sovereignty is legitimate. African countries need the ability to protect sensitive data, enforce appropriate rules, supervise critical systems, and develop domestic capabilities,” she said.

However, she cautioned that storing data locally does not automatically guarantee its security.

“Domestic coverage alone does not guarantee security. A locally hosted system can still fail,” she said, warning that overly restrictive policies could increase costs and complicate cross-border business.

Olaniyan urged technology leaders to pursue interoperability and secure partnerships that would allow African businesses to operate across markets while complying with data protection requirements.

“We should not have to choose between sovereignty and innovation, security and growth, or local capacity and local connectivity,” she said.

She added that Africa needed digital systems capable of protecting sensitive information while connecting markets, attracting investment and improving the competitiveness of local businesses.

In her remarks, the convener of CIO & C-Suite Projects Africa, Mrs. Abiola Laseinde, expressed appreciation to participants and partners, highlighting the growing continental reach of the initiative.

Laseinde said representatives from 13 African countries were present at the event, describing their participation as a demonstration of the conference’s expanding influence beyond Nigeria.

She said: “Thirteen African nations are represented in this room tonight, and Nigeria is one of them. You have made this a truly continental evening, and we are grateful.”

Laseinde also acknowledged the contribution of the event’s jurors, technical partners, sponsors, volunteers, and project team, noting that their efforts had helped sustain the initiative.

The conference brought together technology and business leaders to discuss the role of digital transformation in Africa’s economic development, while the awards recognised individuals, teams and organisations contributing to the continent’s digital future.