Data localisation will create new investment opportunities –GB CEO

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The Managing Director of Galaxy Backbone, Professor Ibrahim Adeyanju, tells JUSTICE OKAMGBA in an interview that Nigeria’s data-localisation policy will spur investment in data centres, cloud services, cybersecurity, fibre connectivity and digital skills

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What impact will the CBN’s directive for payment firms to host transaction data locally have on Nigeria’s digital infrastructure?

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I believe this is much bigger than a regulatory directive. It is a strategic statement about where Nigeria wants to position itself in the digital economy.

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Today, data is one of the world’s most valuable assets, and financial transaction data is among the most sensitive. Keeping that data within Nigeria strengthens our digital sovereignty, improves regulatory oversight and gives us greater control over infrastructure that is critical to our economy.

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But beyond that, I see this as a catalyst for growth. Whenever you create demand for local hosting, you also create demand for world-class data centres, cloud infrastructure, cybersecurity services, fibre connectivity and digital skills. That translates into investment, innovation and jobs.

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At Galaxy Backbone, we have always maintained that digital infrastructure is the foundation of national development. You cannot build a thriving digital economy without trusted infrastructure.

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This directive reinforces that vision and our strong convictions around digital sovereignty. It encourages us to build locally, innovate locally and create more value within Nigeria, while giving citizens and businesses greater confidence that their data is protected within our legal and regulatory environment.

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Is Nigeria’s existing data centre and cloud capacity sufficient to meet the growing needs of banks, fintechs and payment firms?

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We have made tremendous progress over the years, and I do not think that progress gets enough recognition.

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Today, Nigeria has a growing ecosystem of modern data centres and cloud providers, supported by investments from both the public and private sectors. That gives us a solid foundation.

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Having said that, digital infrastructure is not something you build once and forget. Demand is evolving rapidly, driven by fintech innovation, artificial intelligence, cloud adoption and the digitisation of government services.

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So, while we have significant capacity today, we must continue expanding and modernising our infrastructure to meet tomorrow’s needs.

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Galaxy Backbone, as you may know, has Uptime Certified Tier III and Tier IV data centres available for banks and fintechs to take advantage of. Due to the great importance of this, we are also in the process of completing the acquisition of a third data centre in Lagos that will be of world-class repute.

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The real opportunity is to keep building ahead of demand rather than waiting for infrastructure to become a constraint.

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How can Galaxy Backbone support payment firms in meeting the new data-localisation requirements?

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Galaxy Backbone was established to provide secure, reliable and shared digital infrastructure for Nigeria, so supporting initiatives like this is very much within our mandate.

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Galaxy Backbone is more than a hosting provider; it is a trusted digital infrastructure partner enabling Nigeria’s financial services industry to comply with regulatory requirements while delivering secure, resilient and future-ready digital financial services.

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Through its sovereign cloud, PCI DSS-certified infrastructure, Tier III Data Centre, cybersecurity capabilities and nationwide connectivity, Galaxy Backbone provides the trusted foundation upon which banks, fintechs and payment service providers can innovate with confidence while ensuring data remains secure, accessible and within Nigeria’s jurisdiction.

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Beyond compliance, what economic benefits could data localisation bring to Nigeria’s data centre, cloud computing and digital infrastructure sectors?

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The opportunities are enormous, and I think this is where the conversation becomes really exciting. People often focus on compliance, but compliance is only the starting point.

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When more organisations host their data locally, demand naturally grows for data centres, cloud services, cybersecurity, software development, digital payments, artificial intelligence solutions, connectivity and highly skilled technology professionals.

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That creates an entire digital value chain. Take the Government Service Portal as an example. While it provides citizens with easier access to government services, it also demonstrates how locally hosted digital platforms can stimulate innovation, improve service delivery and encourage the development of complementary digital services.

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As more platforms like that emerge, we create opportunities for Nigerian companies to build solutions, create jobs and retain more technology investment within our economy.

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Some industry stakeholders say local hosting could raise business costs. How can Nigeria achieve data sovereignty while maintaining affordability and competitiveness?

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It is a fair concern, especially during the transition period. Any significant technology migration requires investment, planning and operational adjustments. However, I always encourage organisations to look beyond the initial cost and consider the long-term value.

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Hosting data locally can reduce latency, improve system performance, simplify regulatory compliance, strengthen business continuity and enhance customer confidence. These are tangible business benefits that contribute to greater efficiency and resilience over time.

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We have seen a similar evolution in Nigeria’s telecommunications sector. When GSM was first introduced, the cost of acquiring a SIM card and owning a mobile phone was prohibitively expensive for many Nigerians. Yet, as investments increased, competition deepened, and infrastructure expanded, the cost of access fell significantly.

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Today, mobile connectivity is widely accessible, and the telecommunications industry has become a major contributor to the economy, creating millions of direct and indirect jobs across network infrastructure, device distribution, retail, financial services, digital entrepreneurship, logistics and other sectors.

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The same principle applies to data infrastructure. As more providers invest in local data centres, cloud services and supporting digital infrastructure, competition will increase, economies of scale will emerge, and locally hosted services will become increasingly affordable and competitive.

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Government also has an important role to play by creating policies that encourage investment, innovation and public-private collaboration while providing the regulatory certainty needed to grow the ecosystem.

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For me, this is not a choice between data sovereignty and competitiveness. If we get the fundamentals right, the two will reinforce each other.

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By investing in local digital infrastructure today, Nigeria is not only strengthening its digital sovereignty but also creating the conditions for innovation, economic growth and the next generation of high-value jobs in our digital economy.

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What key infrastructure and cybersecurity issues must be addressed as more sensitive financial data is hosted locally?

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At the heart of this conversation is trust. People will only embrace digital platforms if they are confident that their information is secure, available and protected.

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That means organisations need resilient infrastructure with high availability, redundant connectivity, disaster recovery capabilities and internationally recognised security standards.

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But cybersecurity is about much more than technology. It requires strong governance, continuous monitoring, encryption, identity management, threat intelligence and, perhaps most importantly, skilled people who can anticipate and respond to evolving cyber threats.

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At Galaxy Backbone, security is built into everything we do because protecting digital assets is not optional; it is fundamental to sustaining confidence in the digital economy.

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How is Galaxy Backbone positioning itself in the growing sovereign cloud and digital infrastructure market as demand for secure local hosting increases?

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We have actually been preparing for this moment for many years. Galaxy Backbone has spent more than two decades building secure digital infrastructure for government, and today we are leveraging that experience to support a much broader digital ecosystem.

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The recent soft launch of the Government Service Portal is a good example of where we are headed. It is more than just a portal; it represents a secure, locally hosted digital platform designed to simplify how citizens interact with government.

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It reflects our commitment to building trusted digital public infrastructure that is resilient, interoperable and centred around the needs of Nigerians.

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At the same time, we are continuing to strengthen our sovereign cloud capabilities, modernise our data centres, expand our nationwide fibre infrastructure and enhance our cybersecurity posture.

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Our vision is simple: to ensure Nigeria has digital infrastructure that is trusted, scalable and capable of supporting both today’s needs and tomorrow’s opportunities.

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Looking ahead, what policies, investments and industry partnerships are needed to build Nigeria’s capacity for a data-driven economy?

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To build a truly data-driven economy, Nigeria must adopt a whole-of-government and whole-of-ecosystem approach anchored on three priorities: policy, investment and collaboration.

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First, we need forward-looking policies that encourage data sharing across government while maintaining the highest standards of privacy, security and trust.

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Interoperability standards, robust data governance frameworks and policies that support digital public infrastructure will be critical to unlocking the full value of data for national development.

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Second, strategic investment in resilient digital infrastructure is essential. This includes expanding high-speed broadband connectivity, strengthening sovereign cloud capabilities, scaling secure data centres, enhancing cybersecurity and developing digital platforms that enable seamless access to government services.

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Equally important is investing in digital skills to ensure our workforce is equipped to harness the opportunities of a data-driven economy.

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Third, stronger collaboration between government, the private sector, academia, development partners and the innovation ecosystem is indispensable.

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No single institution can build a data-driven economy alone. Sustainable progress will come from partnerships that foster innovation, promote research, develop local talent and create solutions that address real societal and economic challenges.

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At Galaxy Backbone, we believe that digital infrastructure is only valuable when it enables better outcomes for people.

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As the Federal Government’s trusted digital infrastructure and shared services provider, we remain committed to working with our partners to build secure, resilient and interoperable digital platforms that empower government, support businesses and improve the lives of citizens.

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Ultimately, Nigeria’s success in the digital economy will not be determined solely by the amount of data we generate, but by how effectively we transform that data into trusted insights, better public services, inclusive economic opportunities and sustainable national development.

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