Nigeria is positioning itself to tap into a projected $1.9 billion data centre market by 2031, even as over 90 per cent of its data is currently hosted abroad, raising concerns over data sovereignty, security, and lost economic value.
Industry leaders say stronger regulation, rising demand for digital services, and increased investment in local infrastructure could help the country reduce reliance on foreign data hosting and unlock growth in its digital economy.
Speaking at the IoT West Africa Conference in Lagos, Kashifu Inuwa, Director-General of the National Information Technology Development Agency (NITDA), said policy remains the key driver of Nigeria’s digital transformation.
He noted that while infrastructure responds to demand, effective policy creates the enabling environment for sustainable growth, particularly in developing the Lagos–Abuja digital corridor.
Inuwa explained that Nigeria’s broadband policy, which sets minimum speeds of 10 Mbps in rural areas and 25 Mbps in urban centres, provides a framework for prioritising infrastructure deployment. However, he stressed that collaboration between government, the private sector, and civil society is critical to achieving large-scale rollout.
“Collaboration is the pathway that massifies impact, while partnership harnesses collective intelligence,” he said.
Inuwa also highlighted the Nigerian Sovereign Cloud Project, an initiative aimed at strengthening local cloud service providers and reducing dependence on foreign hyperscale operators. The project is expected to boost local data hosting, cut operational costs, and improve access to cloud services.
He added that government-led demand, such as the consolidation of servers across public agencies, can stimulate investment in data centres and accelerate growth in the sector.
Also speaking, Vincent Olatunji, head of the Nigeria Data Protection Commission (NDPC), stressed the importance of strong data protection frameworks under the Nigeria Data Protection Act, 2023.
He described data centres as critical infrastructure for Nigeria’s digital future and warned that hosting most of the country’s data offshore poses risks to national sovereignty and economic value.
Olatunji urged increased investment in local infrastructure to reverse the trend and fully capture the opportunities within the fast-growing data economy.
As part of its broader strategy, NITDA is also pushing digital skills development through its Digital Literacy for All programme, which targets 70 per cent digital literacy by 2027.
Working with the National Youth Service Corps, the agency aims to train up to 30 million Nigerians within three years by deploying digital literacy champions across all 774 local government areas.
With growing demand for cloud services, data protection compliance, and digital infrastructure, Nigeria’s data centre market is poised for significant expansion. However, experts say unlocking its full potential will depend on coordinated policy execution, sustained investment, and stronger local capacity development.
