Nigeria Links Data Sovereignty, AI To Fresh Digital Infrastructure Investment

Nigeria is seeking to convert its digital policies and data-sovereignty requirements into investable opportunities for private capital through its National Cloud Infrastructure Strategy, the Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa Abdullahi, has said.

Inuwa stated this during a fireside chat, titled “From Policy to Investable Demand”, moderated by Jay Katatumba, Senior Investment Director, Africa50 Infrastructure Acceleration, at the Nigerian Workshop on Nigeria’s Digital Infrastructure Opportunity, held during ITW Data Cloud Africa 2026 in Nairobi, Kenya.

He said the strategy was designed to move beyond regulation by creating predictable demand for cloud, data centre, connectivity and other digital infrastructure, thereby giving investors clearer pathways into the Nigerian market.

According to him, Nigeria’s digital infrastructure ecosystem requires stronger linkages between human capital, entrepreneurship, corporate demand, investment capital and government policy. “Innovation thrives within interconnected local clusters,” he said, identifying higher institutions, entrepreneurs, corporate organisations, risk capital and government as key components of the ecosystem.

Inuwa said regulatory interventions by the government were increasingly being structured to create markets while addressing consumer protection and national security concerns. He pointed to requirements for domestic processing of certain financial transactions as an example of regulation that could generate demand for local digital infrastructure.

He said the National Digital Cloud Policy and its investment roadmap were expected to provide investors with greater clarity on opportunities in areas such as local data centres, cloud services, connectivity and digital skills development.

The NITDA DG also addressed concerns over the power requirements of expanding Nigeria’s data centre and cloud infrastructure, saying operators would not be expected to rely solely on electricity from the national grid.

He said existing regulatory provisions allow digital infrastructure operators to explore alternative power arrangements, including renewable energy, gas-fired generation and Independent Power Purchase Agreements (IPPAs), as part of efforts to ensure reliable power for data-intensive facilities.

Inuwa said Nigeria’s requirements would be focused largely on information considered critical to national sovereignty, economic security and citizen welfare.

He listed sensitive financial records, health information and intelligence-related data among categories requiring greater protection within the country, arguing that unrestricted access to such information from outside the jurisdiction could create economic and geopolitical vulnerabilities.

To address the operational challenges that could arise from localisation requirements, he said organisations could deploy hybrid cloud architectures, allowing them to use public cloud infrastructure for some computing functions while retaining sensitive workloads in locally controlled facilities.

Meanwhile, Inuwa said investment opportunities were emerging across Nigeria’s broader digital infrastructure value chain, particularly in broadband connectivity, cloud computing and artificial intelligence (AI).

He said the government’s connectivity expansion programme, referred to as Project Link, was aimed at widening broadband access and bringing more citizens into the digital economy, while the National Sovereign Cloud Initiative would provide computing capacity for local AI applications.

According to him, developing domestic AI infrastructure has become increasingly important as automated systems are deployed in areas capable of influencing access to credit, healthcare services and other critical decisions.

The NITDA chief further urged investors to consider Nigeria’s digital infrastructure requirements as an interconnected market rather than as separate sectors, stressing that the expansion of AI would require corresponding investment in cloud capacity, data centres, broadband networks, energy and digital skills.

He said Nigeria’s policy direction and growing demand for digital services could provide opportunities for infrastructure investors, cloud providers, data centre operators, subsea cable companies, fibre providers and financial institutions seeking exposure to Africa’s expanding digital economy.