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Nigeria Targets $750m Cloud Investment
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Nigeria Targets $750m Cloud Investment

Nigeria's Federal Government launches a National Cloud Policy to attract $750m in private investment and become a West African cloud computing hub

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Axis Signal Newsroom

Mateo Farah
·3 min read

Nigeria's Federal Government is poised to attract $750m in private investment within 24 months, positioning the country as a major cloud computing and data-hosting hub for West Africa and the wider African market. The National Cloud Policy, unveiled by the Federal Ministry of Communications, Innovation and Digital Economy, provides a framework for investment in data centres, cloud infrastructure, and artificial intelligence computing capacity. This policy establishes new rules for government cloud adoption and the protection of sensitive public data, marking a significant shift in Nigeria's role in the global digital economy.

The Minister of Communications, Innovation and Digital Economy, Bosun Tijani, stated that the policy is designed to move Nigeria beyond its role as a consumer of foreign cloud services and establish the country as a location for infrastructure, investment, skills, and digital service exports. Tijani said, "The Federal Government's initial ambition is to mobilise $750m within 24 months, alongside progressive increases in compliant hosting capacity and the development of Nigeria's regional cloud export market." He added that Nigeria must move from being primarily a consumer of global cloud infrastructure to becoming a competitive location for the infrastructure, investment, skills, and digital services that will define the next phase of the global digital economy.

The government will maintain an open and competitive market that allows both domestic and international cloud providers to invest and operate in Nigeria. Tijani said, "Our approach is deliberately open and investment-oriented. We want Nigerian and international providers to invest, build capacity, develop talent, and serve both the Nigerian market and the wider African continent from Nigeria." However, the government will protect sensitive public and regulated information through targeted sovereignty requirements. Tijani stated, "At the same time, government has a responsibility to ensure that its most sensitive digital assets are governed and secured in a manner consistent with our national interests."

The policy does not impose blanket data localisation requirements on commercial data. Instead, sovereignty provisions will apply only to defined categories of government and regulated data considered to require national control. The government said the policy will focus on four areas: investment and market development, regional digital service exports, government cloud transformation, and digital sovereignty and security. Under the investment component, the government will provide fiscal, regulatory, and investment facilitation measures for qualifying cloud and data infrastructure projects.

The policy introduces a whole-of-government cloud aggregation model under which Federal Ministries, Departments, and Agencies will pool their demand for cloud services from registered providers. The government said the arrangement will reduce duplicated spending, improve its bargaining power, and provide predictable demand capable of encouraging long-term private investment in local infrastructure. A National Digital Marketplace will also be established to facilitate coordinated and transparent procurement of cloud and digital infrastructure services.

The government is targeting $750m within 24 months, with other performance targets including growth in compliant hosting capacity, regional cloud capacity contracted from Nigeria, digital service export earnings, government migration, cost savings, and skills development. The policy is expected to support Nigeria's ambition to become a regional exporter of digital services by facilitating cross-border data flows, regional interconnection, and alignment with international standards. Implementation will take place over 24 months, with the first six months focusing on policy activation, baseline assessments, institutional arrangements, and investment facilitation.

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Mateo Farah

Mateo Farah

Business Editor

Leads the Business Desk, covering markets, finance, companies, investment, and the economic forces shaping Africa and the global economy. Powered by Calmorah Intelligence™ with human oversight.

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