The Federal Government has unveiled measures aimed at attracting substantial investment into Nigeria’s cloud-computing and data-centre industry as the domestic market is projected to approach $3.5 billion by 2030.

The government plans to mobilise $250 million in private investment during the first 12 months of implementing its National Digital Cloud Policy, with the figure expected to rise to $750 million within 24 months.

The policy, developed by the Federal Ministry of Communications, Innovation and Digital Economy, is designed to transform Nigeria from a major consumer of foreign cloud services into a competitive regional centre for data hosting, cloud computing and artificial-intelligence infrastructure.

Under the framework, the government intends to encourage Nigerian and international technology companies to construct data centres, expand computing capacity, train local professionals and provide digital services to customers across Africa from infrastructure located in Nigeria.

Nigeria’s cloud market is expected to expand rapidly because of growing demand from financial institutions, telecommunications companies, government agencies, technology firms and other businesses migrating their operations to digital platforms.

However, a significant proportion of the country’s data and digital workloads is currently hosted on infrastructure operated outside Nigeria. This results in substantial foreign-currency expenditure on cloud services provided by companies such as Amazon Web Services, Microsoft Azure, Google Cloud and other international platforms.

The policy seeks to retain more of that expenditure within the Nigerian economy by creating incentives for the development of local infrastructure without excluding foreign cloud-service providers.

Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, said Nigeria must move beyond being principally a consumer of global cloud infrastructure.

“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,” Tijani said.

He explained that the government’s approach would remain open and investment-oriented, allowing both domestic and international providers to participate in the market.

The policy does not impose a general requirement that every category of commercial data must be stored in Nigeria. Data-sovereignty and residency requirements will instead apply to specified government and regulated information considered sensitive to national interests.

It also introduces a “Cloud First” approach for federal ministries, departments and agencies, which will progressively migrate government services and workloads to coordinated cloud infrastructure.

The government will establish a National Digital Marketplace to coordinate the procurement of cloud and digital-infrastructure services. Demand from several public institutions will be aggregated to provide predictable business opportunities for approved service providers and investors.

The Nigeria Information Technology Development Agency will oversee regulation, standards and compliance, while Galaxy Backbone Limited will lead operational delivery, shared infrastructure and government-demand aggregation. The Bureau of Public Procurement will ensure that acquisitions comply with public-procurement requirements.

Implementation will take place over 24 months. The first six months will focus on institutional arrangements, baseline assessments and investment facilitation, while priority government agencies and registered service providers will be onboarded between the sixth and twelfth months.

The remaining period will cover increased government migration, expansion of local capacity, participation by state governments and the promotion of Nigerian cloud services in regional markets.

The policy complements Project BRIDGE, through which the government plans to deploy at least 90,000 kilometres of fibre-optic infrastructure, and the 3 Million Technical Talent programme aimed at developing expertise in cloud computing, artificial intelligence, cybersecurity and software engineering.

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