f the institutions surveyed still needs to make progress before the deadline, although the survey’s readiness categories and the distinction between institutions that have not started and those that are not yet fully ready require clarification.
Yusuf said the CBN was analysing feedback from the industry and would consider adjustments where justified. She did not announce an extension to the January deadline.
The regulator also said its supervisory arrangements had been strengthened through the establishment of the Payments System Supervision Department in 2025 and the training of examiners responsible for oversight of the payment ecosystem.
Localisation raises questions over cost and capacity
The expansion of data localisation to government institutions would increase the importance of domestic cloud capacity, cybersecurity, reliable electricity, data centre resilience and the availability of skilled technology professionals.
For local providers, the opportunity could extend beyond hosting government data to supplying cloud infrastructure, cybersecurity, disaster recovery and related digital services. However, the scale of that opportunity will depend on the procurement rules, technical requirements and implementation timetable adopted by the government.
Local storage alone would not eliminate all risks associated with digital infrastructure. Government institutions would still need adequate safeguards against cyberattacks, data loss, service outages and unauthorised access, alongside arrangements for backup, recovery and continuity of essential services.
The transition could also entail costs for institutions that currently rely on overseas cloud contracts or infrastructure, including migration expenses, system upgrades and the management of data across different platforms.
Neither NITDA nor the CBN disclosed a comprehensive estimate of the cost of implementing the wider localisation drive or the additional domestic infrastructure capacity required to support it.
The government’s own technology spending could help stimulate local supply if procurement is coordinated and domestic providers can meet the required standards. But the N3.8 trillion expenditure figure alone does not establish how much could be redirected to local cloud services or how quickly such a shift could occur.
For now, the financial sector remains the first test of Nigeria’s approach, with the January 1, 2027 deadline approaching. The subsequent extension of the framework to MDAs would mark a broader phase of the policy, bringing government technology procurement and public-sector data management into the country’s push for greater digital sovereignty.