The National Information Technology Development Agency (NITDA) has introduced a data classification framework that mandates cloud service providers to establish local operations in Nigeria. This regulation requires sensitive data, especially from the finance, healthcare, and government sectors, to be stored within the country’s borders. This initiative aligns with global data localisation trends and supports Nigeria’s broader digital economy objectives.
The framework aims to reduce reliance on foreign cloud storage, improve national security, and strengthen regulatory oversight. NITDA’s Director-General, Kashifu Inuwa, stated that this policy is part of Nigeria’s strategy to become a key player in Africa’s digital economy. By enforcing local data hosting, the government hopes to attract cloud service providers, boost economic growth, generate jobs, and foster a thriving local cloud ecosystem.
International cloud providers like Amazon Web Services (AWS), Google Cloud, and Microsoft Azure will need to either build local data centres or partner with Nigerian cloud providers to comply with the new regulation. While this may increase operational costs, it also presents opportunities for joint ventures and collaborations with local businesses.
The policy also complements the Nigeria Data Protection Act (NDPA) 2023, which outlines strict data handling and security requirements. By improving data security, the framework aims to increase public trust in Nigeria’s digital economy while supporting the country’s AI and digital transformation efforts. The initiative presents significant opportunities for local cloud companies, including Rack Centre, MainOne, and Galaxy Backbone, while also challenging them to scale operations and enhance infrastructure.
This move marks a significant milestone in Nigeria’s push for digital sovereignty and its ambition to lead Africa’s digital economy.
