The Federal Government-owned Galaxy Backbone has stepped up efforts to position its digital infrastructure as the preferred platform for banks, fintech companies and other financial institutions following the recent directive by the Central Bank of Nigeria mandating that payment transaction data generated within the country be hosted on local servers.
The development was revealed in a statement released by Galaxy Backbone on Monday after it convened chief information officers from banks, fintech firms and other technology stakeholders for its second-quarter webinar, which focused on digital trust, regulatory compliance and infrastructure resilience.
A statement said the webinar, titled “Building Digital Trust in Nigeria’s Financial Sector: Navigating Regulatory Compliance and Infrastructure Performance,” examined the increasing demand for secure digital infrastructure as financial institutions adapt to changing regulatory requirements and the rapid growth of digital financial services.
It noted that the webinar was held against the backdrop of the Central Bank of Nigeria’s directive requiring banks, fintech firms, mobile money operators, and other payment service providers to retain payment transaction data generated within the country on locally hosted servers.
The policy aims to enhance regulatory supervision, promote transparency, minimise concentration risks, and ensure that sensitive payment data is stored within Nigeria’s jurisdiction.
Speaking at the opening of the webinar, Galaxy Backbone’s Executive Director of Finance, Ibrahim Sani, stated that the swift evolution of Nigeria’s financial sector has underscored the growing demand for trusted digital infrastructure to deliver secure, dependable, and future-ready financial services.
Galaxy Backbone said it remains committed to delivering the digital infrastructure that underpins operations across both the public and private sectors, with several financial institutions already leveraging its secure connectivity, cloud computing, and data centre solutions.
Sani stated that the organisation is well equipped to help the banking industry meet regulatory compliance requirements by offering resilient digital infrastructure designed to address evolving business and regulatory demands.
The statement further quoted the Executive Director of Digital Exploration and Technical Services, Olumbe Akinkugbe, as emphasising that adherence to the Central Bank of Nigeria’s directives and other regulatory requirements is critical to promoting transparency, accountability, consumer trust, and the security of financial data within Nigeria’s rapidly evolving digital economy.
It also noted that Galaxy Backbone’s Head of Automation and Integration, Thomas Oghenebhumhe, showcased the organisation’s sovereign cloud capabilities during the webinar. He explained that a resilient cloud infrastructure allows financial institutions to accelerate innovation, enhance operational efficiency, safeguard sensitive data, and remain compliant with regulatory obligations.
The statement noted that the presentation sparked discussions among participants, particularly on issues relating to cloud migration, data sovereignty and regulatory compliance.
Also speaking, the Head of Data Centre Operations, Samuel Olusola Oyeleke, showcased Galaxy Backbone’s globally certified Tier III and Tier IV data centre infrastructure. He said the facilities are designed to deliver resilience, high availability and reliability, ensuring uninterrupted digital services, effective disaster recovery and business continuity for critical financial operations.
Speaking at the conclusion of the webinar, Executive Director of Customer Centricity and Marketing, Olusegun Olulade, underscored the importance of stronger collaboration among regulators, technology providers and financial institutions to enhance trust in the digital financial ecosystem.
According to the statement, he said that as Nigeria’s financial sector continues to embrace digital transformation, organisations must prioritise investments in infrastructure that complies with regulatory standards while ensuring resilience, robust security, business continuity and sustained customer confidence.
Galaxy Backbone has reaffirmed its commitment to empowering the financial services sector by providing secure, resilient and globally compliant digital infrastructure that allows financial institutions to innovate confidently while meeting evolving regulatory requirements, according to its Managing Director, Prof. Ibrahim Adeyanju Olulade.
The organisation said its Uptime-certified data centres, Payment Card Industry Data Security Standard (PCI DSS)-certified facilities, sovereign cloud platform and nationwide fibre-optic network are designed to support banks, fintech companies and payment service providers with secure data hosting, payment security, regulatory compliance, business continuity and disaster recovery services.
The company noted that the infrastructure addresses the increasing demand for data sovereignty by ensuring that sensitive financial information is securely stored within Nigeria, in compliance with regulatory requirements.
Earlier, it was reported that the Central Bank of Nigeria had directed banks, fintech companies and other payment service providers to host all payment transaction data generated in Nigeria on local servers effective January 1, 2027. The directive forms part of the apex bank’s efforts to enhance regulatory oversight of the country’s rapidly expanding digital payments ecosystem.
The directive was conveyed in a circular issued by the Central Bank of Nigeria’s Payments System Supervision Department and addressed to deposit money banks, microfinance banks, mobile money operators, switching and processing firms, payment terminal service providers, payment solution service providers, super agents, as well as other licensed participants in the payments ecosystem.
Signed by the Director of the Payments System Supervision Department, Rakiya Yusuf, the circular also unveiled a revised market structure framework, introduced beneficial ownership disclosure requirements, and outlined enhanced systemic oversight measures for payment service operators.
