Government-owned ICT provider positions itself as a strategic partner for financial institutions as Nigeria moves to strengthen data sovereignty and digital infrastructure.
Galaxy Backbone has intensified efforts to position itself as the preferred digital infrastructure provider for banks, fintech companies and other financial institutions following the Central Bank of Nigeria’s directive requiring all payment transaction data generated within the country to be stored on local servers.
The move comes at a critical time for Nigeria’s financial services industry, which is undergoing rapid digital transformation while facing stricter regulatory requirements aimed at improving data security, regulatory oversight and the resilience of the nation’s payment ecosystem. As financial institutions prepare to comply with the new policy, Galaxy Backbone is offering its cloud computing, data hosting and connectivity services as part of a broader push to strengthen the country’s digital infrastructure.
The government-owned information and communications technology company recently engaged banking executives, fintech operators and technology experts during its second quarter webinar focused on digital trust, regulatory compliance and infrastructure performance. The forum brought together Chief Information Officers and other industry stakeholders to discuss practical strategies for meeting evolving regulatory standards while ensuring uninterrupted financial services.
The webinar, themed “Building Digital Trust in Nigeria’s Financial Sector: Navigating Regulatory Compliance and Infrastructure Performance,” highlighted the growing importance of secure digital infrastructure as banking operations become increasingly dependent on technology.
The discussions followed the Central Bank of Nigeria’s directive mandating commercial banks, fintech firms, mobile money operators and other payment service providers to ensure that all payment transaction data originating in Nigeria is hosted within the country. The policy forms part of broader regulatory reforms designed to strengthen oversight of the financial system, enhance national data security and ensure that sensitive financial information remains under Nigerian jurisdiction.
Financial regulators believe the new requirements will improve transparency, reduce operational risks and enhance consumer protection by ensuring that payment data is readily accessible for supervision and regulatory compliance. The initiative also aligns with Nigeria’s broader digital economy agenda, which seeks to promote data sovereignty while encouraging investment in local technology infrastructure.
Speaking during the engagement, Galaxy Backbone’s Executive Director of Finance, Ibrahim Sani, noted that the increasing digitisation of financial services has made trusted digital infrastructure more important than ever. According to him, financial institutions require reliable, secure and scalable technology platforms capable of supporting continuous innovation while meeting stringent regulatory expectations.
He explained that Galaxy Backbone already provides a range of digital services, including cloud computing, secure connectivity, enterprise hosting and data centre solutions, to both public and private sector organisations. These capabilities, he said, position the organisation to support banks and fintech companies as they migrate critical payment systems and customer data to locally hosted infrastructure.
Beyond compliance with regulatory directives, industry experts at the event stressed that financial institutions must also invest in resilient infrastructure capable of ensuring business continuity, cybersecurity and disaster recovery. As digital payment volumes continue to increase across the country, maintaining uninterrupted service has become a critical requirement for customer confidence and financial stability.
The discussions also explored the concept of digital trust, which extends beyond technology to include governance, transparency and effective risk management. Participants agreed that protecting customer information and ensuring the reliability of digital financial services are essential to sustaining public confidence in Nigeria’s rapidly expanding digital economy.
Galaxy Backbone further showcased its sovereign cloud infrastructure and enterprise data centre capabilities, explaining how locally hosted cloud services can help financial institutions meet regulatory obligations while improving operational efficiency and reducing dependence on foreign hosting platforms. The organisation said its facilities are designed to provide high availability, robust cybersecurity protection and scalable computing resources required by modern financial institutions.
Executives also highlighted the importance of collaboration among regulators, technology providers and financial institutions in building a secure and resilient digital financial ecosystem. They noted that compliance with the Central Bank’s directive should not be viewed merely as a regulatory obligation but as an opportunity to strengthen Nigeria’s digital infrastructure and promote long-term innovation within the financial sector.
The Central Bank’s data localisation policy is expected to reshape Nigeria’s technology and financial services landscape over the coming months. Banks, fintech companies and other licensed payment operators are expected to invest significantly in local data centres, cloud services and cybersecurity infrastructure to meet the compliance deadline.
For indigenous technology providers such as Galaxy Backbone, the directive presents a major opportunity to expand their role in supporting the country’s financial sector. Increased demand for locally hosted digital services is expected to drive investment in Nigeria’s ICT infrastructure, stimulate innovation within the technology ecosystem and create new business opportunities for domestic service providers.
As the implementation timeline progresses, industry stakeholders believe the policy will not only strengthen regulatory oversight but also contribute to building a more secure, resilient and self-reliant digital economy. With its nationwide fibre network, advanced data centres and government-backed digital infrastructure, Galaxy Backbone is positioning itself to play a central role in helping Nigeria’s financial institutions navigate this important transition.
SOURCE: PUNCH
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