By Julius Peter, Abuja
The Federal Government has said Nigeria’s growing focus on data sovereignty, cloud computing and artificial intelligence (AI) is creating new investment opportunities in the country’s digital infrastructure ecosystem.
The Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa Abdullahi, disclosed this while speaking during a fireside chat titled “From Policy to Investable Demand” at the Nigerian Workshop on Nigeria’s Digital Infrastructure Opportunity, held as part of ITW Data Cloud Africa 2026 in Nairobi, Kenya.
According to him, Nigeria is working to transform its digital policies and data-sovereignty requirements into concrete and investable opportunities for private capital through the National Cloud Infrastructure Strategy.
Inuwa explained that the strategy was designed not merely as a regulatory framework but as a mechanism for creating predictable demand for cloud services, data centres, broadband connectivity and other critical digital infrastructure.
He said this approach would provide investors with clearer pathways into Nigeria’s rapidly expanding digital economy while strengthening the country’s capacity to control and protect critical data.
The NITDA chief stressed that Nigeria’s digital infrastructure development must be viewed as an interconnected ecosystem involving government policy, human capital, entrepreneurship, corporate demand and investment capital.
“Innovation thrives within interconnected local clusters,” he said, identifying higher institutions, entrepreneurs, corporate organisations, risk capital and government as essential components of a sustainable digital ecosystem.
Inuwa further explained that government regulation was increasingly being structured to create markets while simultaneously addressing consumer protection and national security concerns.
He cited requirements for the domestic processing of certain financial transactions as an example of how regulation could stimulate demand for local digital infrastructure.
According to him, the National Digital Cloud Policy and its investment roadmap are expected to give investors greater clarity on emerging opportunities in local data centres, cloud services, connectivity and digital skills development.
The NITDA director-general said Nigeria’s data-sovereignty agenda was particularly important for information considered critical to national sovereignty, economic security and the welfare of citizens.
He identified sensitive financial records, health information and intelligence-related data among categories requiring stronger protection and greater control within Nigeria.
Inuwa warned that unrestricted access to highly sensitive information from outside the country could expose Nigeria to economic and geopolitical vulnerabilities.
He explained that data sovereignty was therefore not simply about where information was stored, but also about ensuring that Nigeria retained sufficient control over critical digital assets and the infrastructure supporting them.
To address concerns that data-localisation requirements could impose operational challenges on businesses, he said organisations could adopt hybrid cloud architectures.
Under such arrangements, companies could use public cloud infrastructure for certain computing functions while retaining sensitive workloads within locally controlled facilities.
The approach, he said, would allow businesses to benefit from the flexibility and scalability of cloud technology while maintaining appropriate control over sensitive information.
Inuwa also linked the country’s data-sovereignty agenda to the rapid growth of artificial intelligence, noting that investment in AI cannot be separated from investment in the wider digital infrastructure required to support it.
He said emerging opportunities existed across Nigeria’s digital infrastructure value chain, particularly in broadband connectivity, cloud computing and AI.
According to him, the government’s connectivity expansion programme, known as Project Link, is aimed at widening broadband access and bringing more Nigerians into the digital economy.
He added that the National Sovereign Cloud Initiative would provide computing capacity needed to support locally developed and deployed AI applications.
The NITDA chief stressed that the development of domestic AI infrastructure had become increasingly important because automated systems were already being deployed in areas capable of influencing critical decisions, including access to credit and healthcare services.
He said Nigeria must therefore ensure that the infrastructure supporting such systems was secure, reliable and capable of meeting the country’s growing digital needs.
The expansion of AI, he noted, would inevitably require corresponding investments in cloud capacity, data centres, broadband networks, energy and digital skills.
The NITDA director-general also addressed concerns over the huge power requirements associated with the expansion of data centres and cloud infrastructure in Nigeria.
He said operators of digital infrastructure would not necessarily be required to depend solely on electricity from the national grid.
According to him, existing regulatory provisions allow digital infrastructure operators to explore alternative power arrangements, including renewable energy, gas-fired generation and Independent Power Purchase Agreements (IPPAs).
The flexibility, he said, would enable data-centre and cloud operators to develop more reliable power solutions for energy-intensive facilities while supporting the growth of Nigeria’s digital economy.
Reliable electricity remains a critical consideration for data centres because cloud computing, AI systems and other data-intensive technologies require continuous power supply and robust backup systems.
Inuwa urged investors to consider Nigeria’s digital infrastructure requirements as one interconnected market rather than treating cloud computing, telecommunications, data centres, broadband and AI as isolated sectors.
He said the country’s policy direction and growing demand for digital services were opening opportunities for a wide range of investors and technology companies.
These, he noted, include infrastructure investors, cloud service providers, data-centre operators, subsea cable companies, fibre providers and financial institutions seeking exposure to Africa’s expanding digital economy.
The NITDA boss maintained that stronger coordination between policy and investment would help Nigeria build the infrastructure required to support digital transformation while creating opportunities for private-sector participation.
He said the government’s objective was to create an environment where regulation could provide greater certainty for investors while ensuring that the country’s strategic interests, citizens’ rights and national security were adequately protected.
The development is coming at a time when digital infrastructure is increasingly being regarded globally as a strategic asset, with businesses and governments paying greater attention to their dependence on foreign technology providers, cloud platforms and critical data infrastructure.
Recent global developments have also highlighted the strategic importance of controlling critical digital assets, including proprietary data and AI models, amid rising cybersecurity threats, geopolitical tensions and disruptions to technology supply chains.
For Nigeria, the emerging policy direction therefore represents an attempt to combine digital sovereignty with economic opportunity by encouraging investment in domestic infrastructure while ensuring that sensitive information and critical digital workloads receive appropriate protection.
The success of the strategy, however, will depend on sustained investment in reliable power, broadband connectivity, data centres, cybersecurity, skilled manpower and a predictable regulatory environment.
With the increasing adoption of AI and cloud-based services across government, financial services, healthcare, education and businesses, Nigeria’s ability to develop secure and locally controlled digital infrastructure is expected to become an increasingly important component of its digital economy agenda.
NITDA’s latest position signals that the Federal Government wants the next phase of Nigeria’s digital transformation to go beyond technology adoption to include greater domestic capacity, stronger data control and increased private-sector investment in the infrastructure upon which the country’s digital future will depend.
