Data Localisation: Banks Urged to Invest in Scalable Data Centre Infrastructure

Stories by Emma Okonji As the January 1, 2027 deadline for the migration of all payment transaction data hitherto hosted outside of Nigeria draws near, Nigerian banks have been urged to strengthen their local data centre infrastructure, improve network resilience and adopt scalable connectivity systems to meet the requirements of the new data guidelines of the Central Bank of Nigeria (CBN). The CBN had directed financial institutions and Fintech companies that generate payment transaction data within Nigeria but host such data outside Nigeria, to redirect, store and manage the data in Nigeria, in order to boost Nigeria’s data sovereignty. The call to strengthen local data centre infrastructure ahead of the deadline, was made by technology solutions experts in Lagos, during an Executive Banking Forum organised by Arravo in partnership with CommScope, where the experts examined the implications of the new CBN regulatory framework for financial institutions and outlined practical approaches to strengthen their technology infrastructure. Giving details of the forum, the CEO of Arravo, Mr. Ayo Adegboye, said with the new CBN directive on data localisation, Nigeria will experience the emergence of hyperscalers, new data centres and the scalability of existing data centres. According to him, hyperscalers will be coming in to take over some of the existing data centres we have in Nigeria. So, we have brought CommScope, which is our partner and global leader in data centre infrastructure and cabling, to give insight into how they can support the banks in effectively hosting data locally in Nigeria and to strengthen the technology infrastructure of existing data centres in Nigeria. “When we talk about the cabling, which has to do with fiber optics and intelligent cabling, which in itself is the bedrock of connectivity, CommScope easily comes to mind because they are experts in physical connectivity. CommScope is the only Original Equipment Manufacturer (OEM) that offers 25 years warranty on data infrastructure cabling and installation today,” Adegboye said. In his presentation during the forum, Data Centre Solutions Architect, Middle East and Africa at CommScope, Hans-Jürgen Niethammer, said the growth in digital transactions, particularly real-time payments, would increase the demand for reliable and high-capacity data centre infrastructure.