The National Information Technology Development Agency (NITDA) has called on global technology companies and local infrastructure developers to invest in Nigeria’s digital infrastructure, citing the country’s growing demand for cloud computing and technology services.
NITDA Director General, Malam Kashifu Inuwa, said Nigeria has the potential to move from being a major consumer of offshore digital services to becoming a leading cloud computing hub in West Africa. He valued the market at more than $1 billion.
Inuwa made the call while presenting “Nigeria’s Digital Infrastructure Opportunity” at ITW Data Cloud Africa 2026 in Nairobi, Kenya. He said Nigeria’s rising digital demand presents significant investment opportunities, particularly in cloud infrastructure, data centres and other technology services.
According to him, local data capacity is operating at nearly 90 percent utilisation, leaving Nigeria heavily reliant on offshore infrastructure to meet its growing computing needs. This has created an economic gap, with significant digital value generated in Nigeria being processed through foreign servers.
To address this gap, the Federal Government is positioning public-sector demand as a catalyst for private investment through a newly institutionalised Cloud-First Policy.
Inuwa said the policy would consolidate fragmented government technology spending and position the government as a major anchor customer for cloud and shared digital infrastructure providers.
Between 2023 and mid-2026, 326 federal ministries, departments and agencies reportedly spent N3.89 trillion, equivalent to about $2.9 billion, on technology investments. NITDA estimates that government demand alone generates nearly $1 billion annually, which the government plans to channel towards cloud infrastructure and shared digital architecture.
For technology businesses and infrastructure developers, the move could create a larger and more predictable market for cloud services, data hosting and related digital infrastructure, while reducing Nigeria’s dependence on offshore providers.
Inuwa also said NITDA is working to improve the regulatory environment for investors by replacing fragmented oversight with a more unified approach. A single-interface portal is being established to simplify compliance across multiple government agencies, while shared regulatory standards are expected to make it easier for businesses, including financial institutions, to migrate core data to local cloud systems.
He said the framework is designed to create a stronger market rather than impose rigid localisation requirements, with emphasis on healthy competition and international interoperability.
Nigeria’s expanding digital economy is also strengthening the investment case. Broadband penetration has risen to more than 56 percent, while the country has 192 million mobile subscribers and 157 million internet users.
For Nigerian technology startups, cloud service providers and digital infrastructure companies, increased local computing capacity could support the expansion of digital services, reduce reliance on foreign infrastructure and create opportunities to serve both domestic and regional markets.
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