By Fanayajo Ranti Margaret
Interswitch has called for a practical and resilience-focused approach to Nigeria’s data localization mandate, stressing the need for robust infrastructure, cybersecurity and disaster recovery systems to ensure the policy does not inadvertently create new risks for the financial .
The company’s Executive Vice President, Operations & Technology, Babafemi Ogungbamila, made the call while speaking as an expert speaker at the exclusive TechCabal Power Brunch, where industry leaders examined the implications of the Central Bank of Nigeria’s 2027 deadline for mandatory data and infrastructure localization.
The discussion focused on the practical realities of implementing the mandate, particularly for payment and fintech companies whose technology systems often operate across multiple locations to ensure reliability, security and business continuity.
According to Ogungbamila, localization should not be viewed as a simple regulatory requirement but as a fundamental architectural decision that must balance data sovereignty with the need for operational resilience.
> “Localization isn’t a single switch you flip—it’s an architecture decision,” Ogungbamila said.
He explained that critical functions such as transaction processing, cybersecurity and disaster recovery are often deliberately distributed across different locations, noting that such arrangements provide redundancy and help protect customers when disruptions occur.
“The real work is distinguishing what must reside within Nigeria as a matter of sovereignty from what exists elsewhere as deliberate redundancy, because that redundancy is often the very thing protecting users when something fails,” he added.
Ogungbamila also highlighted the importance of strengthening Nigeria’s digital infrastructure before the full implementation of the localization requirement.
He cautioned that concentrating critical financial data in one jurisdiction could introduce additional risks if it is not supported by adequate power supply, connectivity and disaster recovery capabilities.
“Resilience shouldn’t be treated as a box we tick before localization begins; it’s what localization has to build toward,” he said.
According to him, the 2027 deadline should therefore be seen not merely as a compliance timeline, but as an opportunity to develop infrastructure capable of supporting secure and reliable localization.
“The deadline shouldn’t be read purely as a compliance line. It’s a call to build Nigeria’s infrastructure to a standard that makes localization genuinely safe, and not just symbolic,” he said.
Interswitch’s position reflects its broader approach to the data localization debate: while recognizing data sovereignty as an important national objective, the company believes its success should ultimately be measured by the resilience and reliability of the systems supporting localized data.
As Nigeria’s payments ecosystem continues to expand, Interswitch said it remains engaged with regulators, industry stakeholders and infrastructure partners to contribute to the development of a localization framework capable of strengthening Nigeria’s financial ecosystem without compromising its resilience.
About Interswitch
Interswitch is Africa’s pioneering integrated payments and digital commerce company, providing technology infrastructure that powers financial transactions across the continent.
Founded in 2002, Interswitch has played a significant role in Africa’s digital payments evolution, supporting financial inclusion and innovation through its ecosystem of products, including Quickteller and the Verve payment card scheme.