The Central Bank of Nigeria (CBN) has urged financial institutions to strengthen cybersecurity and manage risks associated with cloud computing and third-party technology providers ahead of the January 1, 2027, data localisation compliance deadline.
The CBN Deputy Governor, Financial System Stability, Lamido Yuguda, gave the warning at the CBN-National Information Technology Development Agency (NITDA) Executive Regulatory Dialogue on implementing the National Sovereign Cloud Initiative (NSCI) and data localisation.
Yuguda said cloud computing offered scalability, efficiency and opportunities for innovation but also exposed financial institutions to risks involving cybersecurity, data protection, operational resilience and dependence on external technology providers.
He identified concentration risks, infrastructure readiness and effective regulatory oversight as key considerations in implementing the initiative.
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On data localisation, Yuguda said regulated financial institutions were expected to ensure that critical payment transaction data was stored and managed within Nigeria in line with applicable regulatory requirements and the January 1, 2027, deadline.
However, he cautioned that storing data locally would not automatically guarantee its security, stressing the need for robust cybersecurity systems, business continuity plans, disaster recovery measures and effective risk management.
The deputy governor said the CBN would continue collaborating with NITDA and other stakeholders to align financial-sector requirements with national digital infrastructure standards.
He added that the National Sovereign Cloud Initiative should strengthen Nigeria’s digital resilience and domestic technological capacity without discouraging innovation or isolating the country from global technological developments.
Yuguda called for a balanced approach that would promote digital sovereignty, attract investment, support innovation, and safeguard financial system stability.
