The Foundation for Peace Professionals (PeacePro) has called on the Central Bank of Nigeria (CBN) to prioritise local technology providers in implementing its data localisation policy, warning that reliance on foreign technology should strengthen, rather than replace, domestic capacity.
The organisation said the directive requiring financial institutions and payment service providers to store and manage payment transaction data generated in Nigeria within the country presents an opportunity to strengthen digital sovereignty, cybersecurity and the domestic technology industry.
In a statement, PeacePro Executive Director, Abdulrazaq Hamzat, said Nigeria must move beyond consuming foreign digital services and invest in the infrastructure, expertise and local industries required to control and benefit from its expanding digital economy.
“A country that generates critical financial data but depends on infrastructure outside its borders to store and manage that data must ask serious questions about its digital sovereignty,” Hamzat said.
“Nigeria cannot afford to remain merely a market for other countries’ technology while its own digital economy continues to expand.”
The CBN issued the circular on June 15, 2026, setting January 1, 2027, as the deadline for full compliance. The Bank reaffirmed on October 9 that the deadline remained unchanged.
Hamzat said the policy could stimulate investment in Nigerian data centres, cloud infrastructure, cybersecurity, software development and specialised technical services if supported by deliberate measures to develop local capacity.
However, he cautioned that storing data physically within Nigeria would not automatically guarantee digital sovereignty if critical infrastructure, intellectual property, technical expertise and strategic decision-making remained heavily dependent on foreign providers.
“Data localisation must be more than a change of address for servers. It must become part of a national strategy to build Nigerian capacity, develop our technology workforce, strengthen local enterprises and retain more economic value within the country,” he said.
PeacePro also urged the Federal Government and relevant regulators to ensure that Nigerian-owned technology companies and qualified professionals have fair opportunities to participate in the emerging market.
The organisation warned against an implementation process that could turn the transition into an exclusive commercial opportunity for a small number of established foreign technology providers.
It acknowledged concerns among banks and payment companies that migrating complex systems within the available timeframe could lead to operational disruptions and cybersecurity risks.
Hamzat said these concerns should be addressed through constructive engagement and clear technical standards without abandoning the strategic objective of ensuring appropriate domestic control over Nigerian payment transaction data.
He added that Nigeria’s digital sovereignty should be assessed not only by where its data is stored but also by its ability to secure the information, understand the systems managing it, develop domestic alternatives and ensure Nigerians benefit from the economic value generated.
“Nigeria must own its digital future, not necessarily by excluding foreign technology, but by ensuring that foreign participation strengthens rather than replaces our domestic capacity,” Hamzat said.
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