Nigeria Unveils Ambitious Digital Cloud Policy to Attract $750M in AI and Cloud Infrastructure Investment

Nigeria has launched a new National Digital Cloud Policy with the goal of attracting $750 million in private investment over the next 24 months. This investment will target data centers, cloud infrastructure, and AI computing capacity, alongside establishing new regulations for government cloud adoption and the protection of sensitive public data. The policy aims to transform Nigeria from a consumer of foreign cloud services into a hub for digital infrastructure, investment, and service exports.

Communications, Innovation, and Digital Economy Minister Bosun Tijani highlighted that the policy implements sovereignty provisions for critical government and regulated data, allowing commercial data to be hosted where economically viable while safeguarding sensitive national information. The structural design separates responsibilities across three distinct bodies for regulation, operational delivery, and procurement compliance, addressing common issues of self-regulation.

The policy also proposes aggregating government demand for cloud services through a National Digital Marketplace, a strategy to reduce costs and foster local technology companies. Implementation is planned in three phases over 24 months, focusing on policy activation, market launch, government migration, infrastructure expansion, and boosting digital service exports. Performance targets include capacity growth, export earnings, cost savings, and skills development.

This initiative comes as Nigeria, Egypt, and Kenya are all developing AI policies to address dependence on foreign technology. The policy aims to reverse an estimated $850 million annual outflow from Nigerian enterprises to foreign cloud hosting. However, a significant challenge remains the country's unreliable electricity supply, which is a critical constraint for data center capacity and the success of this ambitious investment drive.