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Nigeria Loses N60Bn Annually to Foreign Data Hosting Firms

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In spite of the huge economic benefits of organisations in the country hosting their data with cloud operators, greater number of them is yet to adopt their services rather preferred to patronise foreign providers.

Nigeria Loses N60Bn Annually to Foreign Data Hosting Firms

According to the Nigeria Internet Registration Association (NiRA), the country loses up to ₦60 billion worth of foreign exchange to other countries every year as payments for web hosting services.

For Remi Adejumo, chief executive officer, Cloud Flex: “there is more than a 70 per cent rate of cloud adoption worldwide, however out of the 70 per cent Nigeria can barely boast of 20 per cent. I have always felt that shared services, which is the bedrock of a public cloud, is an essential component in the economic growth of Nigeria.

“Unfortunately, we are lagging seriously behind the rest of the world in adopting this strategy. The adoption and migration to the cloud, results in a great reduction of costs, up to 70 per cent of the IT infrastructure TCO as well as providing agility and speed to market for enterprises”.

According to a recent report Cloud Banking in Africa titled: ‘The Regulatory Opportunity’ put together by Genesis Analytics and Orange Business Services.” African financial service providers (FSPs) stand to benefit hugely from cloud banking but are limited by regulations.

Richard Ketley, director, Financial Services Strategy at Genesis Analytics, said: “Cloud banking can unlock value for the providers and users of financial services by reducing costs and improving efficiency such as through the integration of data across business units and geographies, and with external third-party providers to deliver more innovative products to customers”.

Adejumo noted that: “the under-investment and support of public cloud platforms in Nigeria has led to a large exodus of revenue to the hyperscalers outside the country and contributed to capital flight. Billions of dollars are spent outside of Nigeria to host applications used within these shores.

“There is a lot of talk and publishing of guidelines of protecting the Nigerian market but no legal backing to enforce them. More than 90% of our regulated businesses are hosted outside of our shores. It means in the event of a dispute, the home country has the jurisdiction of resolution.

“We have seen the warning signs and yet ignored them – PI&D scandal, the dispute between the US and China and the marginalisation of a large Chinese conglomerate overnight. In any dispute about the data respository, Nigeria will be the loser as I cannot imagine any country legislating against its own interest.

Adejumo added that, the Nigerian government policy has been to increasingly tax the same companies year in year out rather than create opportunities for enterprises to grow or new private initiatives to flourish.  “China‘s growth in artificial intelligence, for example, was largely a result of favourable laws, grants and a government focus on providing an enabling environment.

“The Nigerian Government needs to focus on the infrastructure, power infrastructure and transport network. Experts have shown that a 25 per cent improvement in these two areas will provide a huge increase in GDP. Subsequently, the government will also see quick returns on their investment.

“The government needs to promote the local growth of technology with favourable legislation and specific funding.

“Businesses need to understand and embrace the advantages of cloud computing with an emphasis on not diminishing the power of local businesses. The relevant authorities that have provided the guidelines and policies need to ensure that there are the laws and statutes to support and enforce them,” he stated.


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Galaxy Backbone @ 20, Unveils New Identity

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Galaxy Backbone (GBB) has unveiled a new corporate identity, signalling what the organisation described as a new phase of growth and readiness to support the future of digital governance in Nigeria.

Galaxy Backbone @ 20, Unveils New Identity

The unveiling of the identity was part of activities marking  20 years of providing critical digital infrastructure and services to government institutions.

According to GBB, the rebranding signals the organization’s strategic evolution from a core government ICT infrastructure provider to a broad national digital transformation enabler connecting governments, businesses, and institutions.

Speaking at the 20th anniversary celebration and awards ceremony in Abuja, Senator George Akume, secretary to the Government of the Federation, urges GBB to lead the next phase of Nigeria’s digital transformation.

Represented by Dr Ibrahim Kana, permanent secretary, General Services Office, Akume, described the organisation as a key driver of modern governance, cybersecurity and digital service delivery across Nigeria.

He said Galaxy Backbone has evolved from a modest initiative into the nation’s foremost provider of secure government connectivity, cloud infrastructure, data hosting and shared ICT services, helping to improve efficiency, transparency and collaboration across Ministries, Departments and Agencies.

‘Digital transformation is no longer an option but a necessity. Nations that embrace technology and innovation are better positioned to achieve sustainable economic growth, improve governance outcomes and enhance the quality of life of their citizens,” he said.

Senator Akume stressed that digital transformation is now essential for economic growth and effective governance. He urged Galaxy Backbone to strengthen its role in emerging technologies, including artificial intelligence, cloud computing, blockchain and big data analytics, to support Nigeria’s digital economy and public sector modernisation.

“The next phase of Nigeria’s digital transformation will require greater innovation, stronger cybersecurity capabilities, expanded broadband infrastructure and deeper collaboration among stakeholders,” he added.

Earlier in his remarks, Professor Ibrahim Adeyanju, managing director of Galaxy Backbone, said the organisation’s journey began with a bold vision to connect government institutions and make digital infrastructure a strategic national asset. He noted that two decades later, the organisation has become a critical pillar of Nigeria’s digital ecosystem.

“Twenty years ago, a bold idea was born. An idea that government could be more connected, that technology could transform governance, and that digital infrastructure could become a strategic national asset,” Adeyanju said.

Professor Adeyanju said Galaxy Backbone’s achievements were made possible through the support of the Federal Government, stakeholders, partner agencies and generations of staff who helped build the institution.

He added that the organisation’s greatest strength remains its workforce and reaffirmed its commitment to innovation, service delivery and talent development.

 

 


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NDPC to Review Data Law to Address AI, Privacy Concerns

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Nigeria Data Protection Commission (NDPC) has said that it plans to seek a review of the Nigeria Data Protection Act (NDPA) 2023 to address emerging technologies such as Artificial Intelligence (AI), robotics and big data, amid growing concerns over privacy, cybersecurity and data governance in an increasingly digital economy.

NDPC to Review Data Law to Address AI, Privacy Concerns

The proposed review comes as regulators across the world grapple with the rapid adoption of AI-driven technologies and the challenges they pose to existing legal frameworks designed to protect personal data and privacy rights.

Experts believe the move signals Nigeria’s determination to align its data protection regime with global technological developments and emerging regulatory standards.

Speaking during activities marking the third anniversary of the signing of the Nigeria Data Protection Act into law, Dr. Vincent Olatunji, national commissioner and chief executive officer of the NDPC, said the current law requires updates to adequately reflect technological realities that have evolved significantly since its enactment.

According to him, the pace of innovation has made it necessary for policymakers to move beyond broad references to emerging technologies and provide clearer regulatory guidance.

“We are in the era of emerging technologies. At the time the law was drafted, we could only make broad references to emerging technologies, but today we can specifically mention Artificial Intelligence, robotics and big data,” Olatunji said.

The NDPC boss noted that technologies which were once considered futuristic have now become central to economic activities, digital services and public administration.

“Ten years ago, nobody was talking about AI the way we are doing now, but today it has become central to virtually every aspect of digital transformation. We need to be more specific about what constitutes emerging technologies and provide examples because the technologies keep evolving,” he added.

Industry stakeholders say the review is timely, given the increasing deployment of AI tools across sectors including banking, telecommunications, healthcare, education and public services.

They argue that clearer rules are needed to govern automated decision-making, algorithmic accountability, data ownership and cross-border data transfers.

The proposed amendment also aligns with the National Assembly’s ongoing work to assess the existing law and identify areas to strengthen in light of evolving cyber threats and technological advancements.

Senator Afolabi Salisu, chairman, Senate Committee on ICT and Cybersecurity, had earlier indicated that lawmakers were reviewing the legislation to ensure it remains relevant in addressing developments such as AI and emerging cybercrime threats.

Analysts believe the review could further strengthen investor confidence in Nigeria’s digital economy by providing clearer regulatory certainty for businesses operating in data-intensive sectors.

The NDPA 2023 established the NDPC as the country’s primary data protection regulator and created a legal framework for the collection, processing, storage and transfer of personal data.

Since its enactment, the Commission has ramped up enforcement, compliance monitoring, and awareness campaigns to strengthen data governance across public and private institutions.

Olatunji, however, cautioned against excessive reliance on AI technologies, stressing that human oversight remains critical in data processing and decision-making systems.

“We still need the human component. We should not leave everything to artificial intelligence,” he said.

He further noted that issues relating to digital footprints, privacy rights and responsible data use would continue to demand regulatory attention as technology becomes more integrated into everyday life.

Technology policy experts say the emergence of generative AI, machine learning systems and autonomous technologies has created new legal and ethical questions that many existing privacy laws were not originally designed to address.

These include concerns around automated profiling, bias in AI systems, consent management, surveillance and accountability for decisions made by intelligent systems.

Meanwhile, the NDPC has in recent months demonstrated a growing focus on AI governance, including participation in international initiatives aimed at promoting responsible and privacy-conscious deployment of artificial intelligence technologies.

Stakeholders believe that any amendment to the Act should strike a balance between protecting citizens’ privacy rights and supporting innovation within Nigeria’s rapidly expanding digital economy.

Hence, the proposed review signals the likelihood of stricter compliance obligations for business and increased scrutiny of how personal data is collected, processed and utilised.

While experts advise organisations to begin strengthening internal governance frameworks, data management systems and privacy compliance programmes in anticipation of future regulatory changes.

Consequently, the planned review of the Data Protection Act underscores the growing recognition that regulatory frameworks must evolve alongside technological innovation, while for policymakers, the challenge will be ensuring that the law remains flexible enough to encourage innovation while robust enough to protect citizens in an era increasingly defined by data and artificial intelligence.

 

 

 


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FG Bans Use of Gmail, Other Personal Emails for Civil Service Operations

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Federal government has banned  the use of personal email accounts, such as Gmail, Yahoo Mail, or Hotmail, for official public-sector transactions, mandating that civil servants transition to a secure, institutional digital platform.

FG Bans Use of Gmail, Other Personal Emails for Civil Service Operations

This ban requires all government officials to use secure institutional platforms with the approved .gov.ng domain to safeguard sensitive data.

The announcement was made in Abuja by Didi Esther Walson-Jack, head, the Civil Service of the Federation, during a digital transformation summit held to celebrate the 20th anniversary of Galaxy Backbone.

According to Walson-Jack, the government has activated more than 115,000 official GovMail accounts to ensure that communication within the federal civil service remains secure, professional, and easy to track.

She said government activities should no longer rely on personal email services or informal channels that make record-keeping difficult.

The Head of service explained that official information must remain within government systems even when an officer leaves a position.

This, she said, will help preserve important records and prevent the loss of government information tied to individual workers.

The Head of Service also disclosed that the Federal Government achieved a major target by completing the digitalisation of work processes across all 38 federal ministries and extra-ministerial departments before the end of December 2025.

She described the development as proof that reforms can succeed when there is clear leadership and commitment from government institutions.

According to her, the achievement shows that the civil service is capable of adapting to modern methods of operation.

Walson-Jack recalled that in the past, government files could easily be delayed, misplaced, or trapped in lengthy approval processes.

She said the shift to digital systems now makes it easier to monitor documents, improve accountability, and measure progress in government operations.

Walson-Jack added that the paperless civil service initiative is aimed at making government work more efficient by cutting delays, reducing unnecessary bureaucracy, improving transparency, and allowing records to be retrieved and processed faster.

 


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