Nigeria is set to tighten the rules around how banks, fintech companies and other regulated organisations use cloud services as the National Information Technology Development Agency (NITDA) introduces a new certification system for cloud infrastructure providers.
Under the new framework, regulated organisations will be required to choose cloud service providers from NITDA’s Certified Cloud Register when the new rules begin in October. The register will contain companies that have been assessed and approved to handle sensitive financial, government and other critical digital data.
The initiative is part of NITDA’s National Sovereign Cloud Initiative, which is designed to give the government greater oversight of Nigeria’s digital infrastructure while improving the security of important data.
The new register will cover cloud service providers, data centre operators, managed service providers and companies providing artificial intelligence infrastructure. Banks, fintechs and government agencies will be able to use the register to confirm whether a provider meets the required technical, security and regulatory standards before transferring sensitive workloads to its infrastructure.
The move is particularly important as Nigeria prepares for the Central Bank of Nigeria’s data localisation policy, which is scheduled to take effect on January 1, 2027.
The CBN policy requires payment transaction data generated within Nigeria to be stored and processed locally. The rule will affect deposit money banks, microfinance banks, mobile money operators, payment service providers, switching companies and other financial institutions.
NITDA’s certification system is therefore expected to help businesses prepare for the new requirements while creating a clearer process for choosing compliant cloud providers.
The agency said the framework will apply the same standards to Nigerian-owned cloud companies and international technology firms. This means local providers and global cloud companies will compete under the same certification requirements.
The development comes as Nigerian banks continue to increase their spending on technology. NITDA said the country’s 10 largest banks spent about N177.91 billion on information technology during the first quarter of 2026, representing a 31 per cent increase from the same period last year.
A significant part of this spending goes toward cloud infrastructure, with much of the infrastructure currently hosted outside Nigeria. The new framework is expected to encourage financial institutions to use more compliant infrastructure within the country.
NITDA also said more than 85 per cent of Nigerian businesses currently depend on cloud services, although many rely on infrastructure located outside the country.
According to the agency, the policy is not intended to prevent foreign technology companies from operating in Nigeria. Instead, it aims to establish clearer rules for companies handling sensitive Nigerian data.
NITDA Director-General, Kashifu Inuwa Abdullahi, said the initiative is aimed at strengthening Nigeria’s participation in the global digital economy while protecting the country’s critical information.
The Certified Cloud Register is expected to become an important part of Nigeria’s digital governance strategy, helping improve cybersecurity, encourage local investment in cloud infrastructure and strengthen confidence in the country’s digital ecosystem.
