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Nigeria Faces Data Sovereignty Risks as Experts Urge Investment in Local Infrastructure 

byTemilolaoluwa Olatunde
May 3, 2026
in News, Tech
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Nigeria is facing growing concerns over the safety and control of its digital data, as experts warn that increasing reliance on foreign data infrastructure could threaten the country’s sovereignty.

The alarm was raised by the National Commissioner and Chief Executive Officer of the Nigeria Data Protection Commission (NDPC), Vincent Olatunji, during his keynote speech at the IoT West Africa Conference. He explained that the current trend, where a large portion of Nigeria’s data is stored outside the country, creates serious risks for national control over digital assets.

According to him, this situation is not only risky but also puts Nigeria in a vulnerable position in terms of managing its own data. He stressed the urgent need for the country to invest in local data infrastructure, especially data centres, which are now seen as essential in today’s digital world.

Olatunji highlighted that strong compliance with the Nigeria Data Protection Act of 2023 is critical for protecting the country’s digital economy. He warned that organisations that fail to follow data protection laws could face serious consequences, including legal penalties, financial losses, and damage to their reputation.

Despite these concerns, there is also optimism about the future of Nigeria’s data centre industry. The sector is expected to grow significantly, with projections estimating it could reach a value of $1.9 billion by 2031. This growth is being driven by increasing demand for cloud services and other digital solutions across various industries.

Also speaking at the event was the Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, who emphasised the importance of strong policies in driving digital growth. Represented by Aristotle Onumo, he explained that while infrastructure is important, policies are what truly create an environment where innovation and investment can thrive.

He pointed to the Nigerian Sovereign Cloud Project as a key initiative aimed at strengthening local cloud service providers and reducing dependence on foreign systems. By building local capacity, Nigeria can ensure that more of its data is stored within its borders, improving both security and access to digital services.

Inuwa also discussed efforts on the demand side, noting that government actions such as consolidating servers across agencies are helping to encourage investment in local data centres. These steps are designed to create more opportunities for growth in the sector.

He further called for collaboration among stakeholders, stressing that the digital economy is no longer just about infrastructure but about creating value for citizens. According to him, achieving a fully digital Nigeria will require cooperation between the government, private sector, and other key players.

Tags: Cloud ComputingData ProtectionDigital EconomyInfrastructureNDPCNigeriaNITDA
Temilolaoluwa Olatunde

Temilolaoluwa Olatunde

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