Nigeria could repeat one of the most expensive mistakes in its economic history if it continues to generate vast amounts of digital data at home while relying heavily on foreign infrastructure to store and process it, Finance Minister Taiwo Oyedele has warned.
Oyedele said the country must avoid reproducing in the digital economy the pattern that turned it into a major crude oil exporter but left it dependent on imported refined petroleum products, with much of the value, technical expertise and employment generated outside its borders.
He gave the warning at the University of Uyo, Akwa Ibom State, while delivering the institution’s convocation lecture, titled Digital Sovereignty and Ethics: Guarding the Economy for the Next Generation.
The scale of Nigeria’s digital activity makes the concern significant. Figures from the Nigerian Communications Commission show that the country had more than 157 million active internet subscriptions as of May 2026. Yet, an estimate by the Nigeria Data Protection Commission indicates that over 90 per cent of Nigerian data is hosted abroad.
The figures expose a striking imbalance: Nigeria is generating enormous volumes of digital information, but much of the infrastructure used to store and process that information is located beyond its borders.
Oyedele identified the consequences as foreign exchange spending on offshore data services, fewer opportunities for Nigerian technology businesses and professionals, and exposure of citizens’ information to foreign laws and jurisdictions.
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The concern extends beyond where information is stored. Data can support financial services, healthcare, agriculture, commerce, artificial intelligence and public administration. Countries with the infrastructure and technical capacity to process it can develop valuable products, attract investment and create skilled employment.
Nigeria therefore risks surrendering part of the economic return from its expanding digital market if local businesses cannot compete in the infrastructure and services that support it.
The minister defined digital sovereignty as Nigeria’s ability to determine, under its own laws, how data is collected, stored, accessed and used. He clarified that the concept did not require isolation from international technology markets.
Rather, Nigeria should engage the global digital economy from a position that protects its interests.
He called for investment in domestic data infrastructure, stronger regulatory institutions and the development of local professionals and companies capable of turning information into commercially valuable services.
However, his address did not specify the amount required to close the infrastructure gap, identify a funding arrangement or provide a timetable for reducing dependence on overseas data centres.
Those details will be important in assessing how quickly the warning can translate into measurable policy action.
Oyedele also addressed the implications of artificial intelligence, telling graduates to acquire emerging technology skills without surrendering independent judgement, critical thinking, creativity, empathy and integrity.
He cautioned that online behaviour increasingly shapes professional reputations. Digital popularity, he noted, does not automatically confer credibility, while viral attention is not necessarily evidence of value creation.
He further warned that artificial intelligence could amplify misinformation, impersonation and dishonesty, making responsible digital conduct essential.
Universities, he said, must move beyond awarding certificates and become centres of innovation, entrepreneurship and practical problem-solving. He identified agriculture, energy, healthcare, marine resources, environmental management and digital services as fields where graduates could develop solutions and establish businesses.
Oyedele listed lifelong learning, value creation, integrity, responsible digital citizenship and participation in nation-building among the responsibilities facing the graduating students.
His central warning carries an important economic lesson: internet access alone does not guarantee digital prosperity. Nigeria must also build the infrastructure, skills and businesses needed to retain more of the value its digital activity generates.
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