The Federal Government’s August 2026 National Digital Cloud Policy aims to boost domestic cloud investment and hosting capacity while introducing a risk-based classification of “sovereign data.” It does not require all data to be hosted in Nigeria, but businesses must assess whether their data is sovereign and what controls its classification demands, alongside their existing obligations under the Nigeria Data Protection Act 2023.
In this article, we explore how the policy interacts with the NDPA, what it means for businesses, financial institutions, investors and technology providers, and why a structured review of cloud and data-management arrangements is now necessary.
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