BY CHIKA OKEKE, Abuja
The National Information Technology Development Agency (NITDA) has joined forces with the Central Bank of Nigeria (CBN) to strengthen Nigeria’s digital sovereignty and protect the critical digital infrastructure.
Under the arrangemenet, both agencies will advance the implementation of the National Sovereign Cloud Initiative and data localisation.
Director General of NITDA, Kashifu Inuwa disclosed this at the Executive Regulatory Dialogue, organised by NITDA in partnership with the CBN in Lagos State.
The engagement brought together stakeholders across the financial services, telecommunications, data centre, and technology sectors to discuss strategies to strengthen Nigeria’s control over the digital infrastructure that underpins its economy.
Inuwa emphasised that digital sovereignty has become a critical national priority as the economy increasingly relies on digital platforms and infrastructure to deliver essential services, particularly in the financial sector.
While highlighting the potential implications of external disruptions to essential digital services, Inuwa stated that the economy would be crippled if a major disruption or geopolitical crisis prevent the banks from accessing critical digital infrastructure hosted outside the country.
He explained that such concerns extend beyond technology to issues of national economic security, financial stability and the country’s ability to maintain control over its digital future.
Inuwa noted that digital sovereignty should not be interpreted as technological isolation or an attempt to develop every technology locally. Rather, it involves building the national capacity required to make informed decisions about the technologies, infrastructure and standards on which the country depends.
He pointed out that Nigeria’s financial sector provides a compelling example of how deliberate policy decisions can stimulate digital transformation and local innovation.
Recalling the introduction of the CBN’s cashless policy years ago, he explained that the policy’s push for financial institutions to upgrade their technology infrastructure helped create opportunities for fintech companies to develop innovative solutions, contributing to Nigeria’s emergence as a leading fintech ecosystem.
He praised the CBN for taking further steps to strengthen the country’s control over the infrastructure supporting financial services, expressing confidence that the sector could lead in advancing Nigeria’s digital transformation.
Inuwa stated that NITDA’s role is to provide the standards and overarching policy framework that sector-specific regulators can leverage to advance digital transformation within their respective industries.
He disclosed that achieving digital sovereignty requires a collaborative ecosystem involving financial institutions, telecommunications operators, data centre providers, system integrators, technology companies and global cloud service providers.
The DG assured stakeholders that the Nigerian technology ecosystem has the capacity to support the initiative, adding that the country is building on existing capabilities and international experience rather than starting from scratch.
The NITDA boss informed that an assurance framework would guide implementation, with the agency facilitating compliance with Nigeria’s national sovereign architecture requirements.
He identified control, independence, resilience, risk management and freedom of choice as fundamental principles of digital sovereignty.
Inuwa stated that Nigeria must develop the capacity to maintain essential services despite external disruptions, reduce exposure to geopolitical and technology-related risks, and avoid excessive dependence on individual vendors or jurisdictions.
While underscoring the need for resilient digital infrastructure capable of sustaining critical financial operations during disruptions, Inuwa said that submarine cable disruption cannot automatically affect the payment system.
He was optimistic that the initiative would prevent vendor lock-in and strengthen Nigeria’s ability to determine the technologies and infrastructure best suited to its national interests.
Deputy Governor, Financial System Stability, CBN, Mr Lamido Abubakar Yuguda reaffirmed the bank’s commitment to strengthening financial stability, cybersecurity and protection of critical financial data through the implementation of the National Sovereign Cloud Initiative (NSCI) and data localisation.
Yuguda commended NITDA for its leadership in advancing digital transformation agenda, saying that the growing adoption of digital payments, fintech, mobile money and digital banking increased the financial sector’s dependence on digital infrastructure.
He stated that financial institutions must strengthen cybersecurity, business continuity, disaster recovery and risk management arrangements, while ensuring compliance with applicable data localisation requirements and the January 1, 2027, implementation timeline for critical payment transaction data.
The CBN Deputy Governor emphasised that the initiative should promote innovation rather than isolate Nigeria from global technological developments, calling for stronger collaboration among regulators, financial institutions and technology providers.
In his presentation on the pre-event survey findings, the Special Assistant to the NITDA DG on Policy, Dr Muhammad Aminu Lawal disclosed that the survey identified regulatory clarity, migration timelines and local infrastructure capacity as critical issues requiring urgent attention ahead of the January 1, deadline.
He highlighted that on the supply side, the survey indicated that Nigeria has existing capacity to support early adopters.
Lawal disclosed that 79 per cent of the 42 digital infrastructure and service providers surveyed, reported its readiness to accommodate additional financial-sector workloads, while 74 per cent said that they could onboard new financial customers within three months.
He stated that much of the planned infrastructure expansion is expected in 2027, with financing costs, power supply and foreign exchange identified as major constraints.
The findings indicated clear written regulatory guidance, phased or risk-based implementation milestones, a defined exceptions process and verifiable information on assured local infrastructure providers.
The survey underscored the need for coordinated action by NITDA, CBN and industry stakeholders to address implementation uncertainties, strengthen local digital infrastructure and support a smooth transition to Nigeria-based data hosting and management.
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