The National Information Technology Development Agency (NITDA) has reaffirmed its commitment to strengthening Nigeria’s digital sovereignty and protecting the nation’s critical digital infrastructure through its partnership with the Central Bank of Nigeria (CBN) to advance the implementation of the National Sovereign Cloud Initiative and data localisation.

NITDA Director General, Kashifu Inuwa, CCIE, said this at the Executive Regulatory Dialogue which was organised by NITDA in partnership with the Central Bank of Nigeria  (CBN) in Lekki, 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.

During his welcome and context-setting address, Inuwa emphasised that digital sovereignty has become a critical national priority as Nigeria’s 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 questioned, “Imagine what will happen to our economy if tomorrow a major disruption or geopolitical crisis prevents our banks from accessing critical digital infrastructure hosted outside our country. Can our citizens still transfer money? Can businesses still receive payments? Can our banks keep processing transactions? Can our economy continue functioning?” 

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.

According to the NITDA DG, 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.

“Digital sovereignty is not about politics. It is not about isolation. It is not about building everything ourselves, but it is about building our digital capacity to compete in the world we are today,” Inuwa stated.

He noted 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 commended the CBN for taking further steps to strengthen the country’s control over the infrastructure supporting financial services, expressing confidence that the sector could once again lead the way in advancing Nigeria’s digital transformation.

“Through this partnership, NITDA and CBN are working together to make sure the financial sector is the first sector to comply with our National Sovereign Cloud Initiative,” he stated.

Inuwa further explained 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 stressed 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.

He assured stakeholders that the Nigerian technology ecosystem has the capacity to support the initiative, noting that the country is building on existing capabilities and international experience rather than starting from scratch.

“We have done it before, and we are going to do it now. So this is not something you can doubt; it is something that already exists,” he said, urging stakeholders to work collectively towards implementing the initiative.

The NITDA boss further disclosed that an assurance framework would guide implementation, with the Agency seeking to leverage existing international certification standards while ensuring compliance with Nigeria’s national sovereign architecture requirements.

He added that the development of national certification options was also being explored to provide greater flexibility and choice.

He identified control, independence, resilience, risk management and freedom of choice as fundamental principles of digital sovereignty. According to him, 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 averred, “Submarine cable disruption cannot automatically affect our payment system.” 

In his keynote address, the Deputy Governor, Financial System Stability, CBN, Mr Lamido Abubakar Yuguda, reaffirmed the Bank’s commitment to strengthening Nigeria’s 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 Nigeria’s digital transformation agenda, noting that the growing adoption of digital payments, fintech, mobile money and digital banking has increased the financial sector’s dependence on digital infrastructure.

He stressed 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.

 “Our collective objective should be clear: to build a digital financial ecosystem that is innovative without compromising security, sovereign without becoming isolated and resilient enough to sustain public confidence,” he stated.

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 has identified regulatory clarity, migration timelines and local infrastructure capacity as critical issues requiring urgent attention ahead of the January 1, 2027, deadline. 

He, however, highlighted that on the supply side, the survey indicated that Nigeria has existing capacity to support early adopters, with 79 per cent of the 42 digital infrastructure and service providers surveyed reporting readiness to accommodate additional financial-sector workloads, while 74 per cent said they could onboard new financial customers within three months. 

Dr Lawal 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 therefore called for clear written regulatory guidance, phased or risk-based implementation milestones, a defined exceptions process and verifiable information on assured local infrastructure providers.

He concluded that the survey underscores 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.