CBN DATA LOCALISATION RAISES SKILLS, SECURITY CONCERNS

Nigeria’s data-centre infrastructure has enough capacity to support the Central Bank of Nigeria’s new payment-data localisation requirement, but industry stakeholders have raised concerns about shortages of specialised skills, rising costs and the security of fibre infrastructure.

The concerns were raised at a recent data localisation roundtable in Lagos involving representatives from the telecommunications, banking and identity-management sectors.

The CBN has directed banks, fintech companies and other payment operators to store and manage payment transaction data generated in Nigeria within the country. The directive takes effect from January 1, 2027, and is intended to strengthen oversight and protect the integrity of the payments system.

Industry participants said the transition would require financial institutions to review their existing technology infrastructure, including cloud systems, security controls, networking and data-backup arrangements.

A major concern is the shortage of specialised personnel capable of managing large-scale local infrastructure. Stakeholders also warned that migration could expose institutions to operational and cybersecurity risks if it is not properly planned.

The security of fibre networks was another issue highlighted during the discussions. Participants noted that disruptions to telecommunications infrastructure could affect the reliability of payment services even when transaction data is stored locally.

However, officials said Nigeria’s existing data-centre capacity can accommodate additional workloads. The National Identity Management Commission also cited its locally hosted national identity database as an example of large-scale data being managed within Nigeria.

With electronic payment activity continuing to grow, stakeholders said financial institutions would need to balance regulatory compliance with reliability, security and the cost of operating local infrastructure.