…90% of Nigeria’s data hosted abroad despite $1.9bn outlook — NDPC
By James Akinlade
Nigeria is ramping up efforts to build local data centres as regulators warn that heavy reliance on foreign hosting threatens digital sovereignty and long-term growth.
Speaking at the IoT West Africa Conference, the National Information Technology Development Agency (NITDA) and the Nigeria Data Protection Commission (NDPC) stressed that policy, infrastructure and data protection must align to drive a resilient digital economy.
Representing NITDA Director General, Kashifu Inuwa Abdullahi, Dr Aristotle Onumo said policy remains the foundation for digital transformation, guiding investment and shaping demand across the ecosystem.
He noted that Nigeria’s broadband plan, with minimum speeds of 10 Mbps in rural areas and 25 Mbps in urban centres, provides a framework for expanding infrastructure along the Lagos-Abuja digital corridor.
He however warned that infrastructure rollout would lag without coordinated efforts across government, private sector and civil society.
“Collaboration is the pathway that massifies impact, while partnership harnesses collective intelligence. No one can achieve this in isolation,” he said.
Onumo highlighted the Nigerian Sovereign Cloud Project, aimed at strengthening local providers and reducing dependence on foreign hyperscale firms.
“We are no longer looking at IT from the perspective of infrastructure alone, but as an integrated system that creates value for the people,” he said.
He added that government demand, including server consolidation by agencies, is expected to stimulate investment in cloud services and data centres, while public-private partnerships remain key to delivery.
Speaking, NDPC National Commissioner, Dr Vincent Olatunji, said data protection and privacy are central to safeguarding Nigeria’s digital economy. He emphasised that the Nigeria Data Protection Act 2023 sets clear compliance expectations, noting that adherence can drive trust and investment while non-compliance carries risks.
Olatunji warned that over 90 per cent of Nigeria’s data is hosted abroad, describing the trend as a threat to national sovereignty, even as the data centre market is projected to reach 1.9 billion dollars by 2031.
Meanwhile, as concerns over foreign data hosting mount, NITDA and Galaxy Backbone (GBB) have moved to strengthen local cloud capacity by supporting startups with subsidised sovereign infrastructure.
The partnership, driven through the Office for Nigerian Digital Innovation (ONDI), will provide startups in the iHatch programme access to subsidised cloud services hosted on Galaxy Backbone’s local platform.
The initiative is designed to accelerate indigenous innovation, improve data localisation and expand access to secure digital infrastructure for early-stage firms.
Managing Director of Galaxy Backbone, Professor Ibrahim Adeyanju, said the move would enable startups to build on reliable and secure systems within Nigeria.
“This initiative empowers startups with secure, enterprise-grade cloud services at highly subsidised rates, allowing them to host data locally and strengthen Nigeria’s digital sovereignty,” he said.
Under the model, he said startups would receive cloud credits tied to their growth stages, covering build, validation and scale phases, with support lasting up to 12 months.
After the credit cycle, he said beneficiaries are expected to migrate to standard or pay-as-you-go plans, with billing denominated in naira to reduce exposure to foreign exchange volatility.
NITDA Director General, Kashifu Inuwa, said the partnership aligns with efforts to build a resilient and globally competitive startup ecosystem by expanding access to critical infrastructure.
National Coordinator of ONDI, Victoria Fabunmi, said integrating sovereign cloud services into iHatch would improve the ability of startups to scale and compete globally. She added that the programme, which has trained over 160 startups across 37 hubs, is expected to gain momentum as more innovators leverage local cloud infrastructure.
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