Nigerian banks have been urged to strengthen their local data centre infrastructure, improve network resilience and adopt scalable connectivity systems to meet the requirements of the Central Bank of Nigeria’s new data guidelines.
The call was made at the Executive Banking Forum organised by Arravo in partnership with CommScope in Lagos, where technology experts examined the implications of the new regulatory framework for financial institutions and outlined practical approaches to strengthening their technology infrastructure.
The forum had as its theme, ‘New CBN Data Guidelines: A Practical Roadmap for Bank Tech Leaders’.
Participants examined the growing importance of local data storage, data centre capacity, disaster recovery, connectivity and infrastructure readiness as banks respond to evolving regulatory expectations and increasing demand for digital financial services.
Giving details of the forum, the CEO of arravo, Mr. Ayo Adegboye, said with the new CBN directive on data localisation, Nigeria will experience the emergence of hyperscalers, new data centres and the scalability of existing data centres. According to him, hyperscalers will be coming in to take over some of the existing data centres we have in Nigeria. So, we have brought CommScope, which is our partner and global leader in data centre infrastructure and cabling, to give insight into how they can support the banks in effectively hosting data locally in Nigeria and to strengthen the technology infrastructure of existing data centres in Nigeria.
“When we talk about the cabling, which has to do with fiber optics and intelligent cabling, which in itself is the bedrock of connectivity, CommScope easily comes to mind because they are experts in physical connectivity. CommScope is the only Original Equipment Manufacturer (OEM) that offers 25 years warranty on data infrastructure cabling and installation today. CommScope will help data centre operators in Nigeria to prepare for the future, have the right capacity and capability in place ahead of the expansion that we’re going to see as a result of the CBN regulatory framework within the financial sector,” Adegboye said.
Speaking at the event, Hans-Jürgen Niethammer, Data Centre Solutions Architect, Middle East and Africa, CommScope, said the growth in digital transactions, particularly real-time payments, was increasing the demand for reliable and high-capacity data centre infrastructure.
He explained that financial institutions would need to expand their local data centre capacity while ensuring that their infrastructure could provide the redundancy and resilience required to maintain uninterrupted services.
According to him, banks with existing local data centres would also need to consider upgrading and modernising their facilities to accommodate growing operational demands and emerging technologies, including artificial intelligence.
He said the traditional perception of data centres as cost centres had changed, stressing that they had become strategic business assets that enable organisations to deliver digital services, improve customer experience and develop new revenue-generating opportunities.
“Today, a data centre is no longer simply a cost centre. It has become an important business asset that enables organisations to deliver digital services and develop new business models.”
Niethammer identified standards and architecture, bandwidth migration, scalability and manageability, as well as reliability, as four critical considerations for organisations planning or upgrading their data centre infrastructure.
He warned that inadequate planning of cabling infrastructure could expose organisations to unnecessary replacement costs when new technologies and higher bandwidth requirements emerge.
He explained that fibre-optic cabling should be designed to accommodate future technological developments rather than only meet immediate connectivity requirements.
According to him, organisations must adopt flexible fibre platforms that can support different connector technologies and allow migration to higher network speeds without replacing their entire cabling infrastructure.
He noted that Ethernet speeds had evolved significantly over the years, moving from 100 megabits per second to discussions around 1.6 terabits per second, with further developments towards 3.2 terabits per second.
He said this progression made it important for banks to consider future bandwidth requirements when designing their data centre infrastructure.
The CommScope representative also highlighted the importance of central patching locations, optical distribution frames and properly organised cable management systems in improving infrastructure scalability.
He explained that these arrangements would enable data centre operators to introduce additional servers, switches and storage equipment without disrupting existing connectivity systems.
On infrastructure resilience, Niethammer said organisations should incorporate appropriate redundancy, multiple service-provider entry points and alternative cable pathways into their data centre designs.
He also highlighted the importance of protecting fibre-optic cables through properly designed raceway systems and ensuring sufficient space for future infrastructure expansion.
He further explained that CommScope provides fibre-optic and copper cabling solutions, connectivity systems, technical support, installation guidance and engineering services to support organisations throughout the data centre development process.
The company, he said, also offers a 25-year system warranty and application assurance, giving customers confidence that their installed network infrastructure would support the applications for which it was designed throughout the warranty period.
During the question-and-answer session, discussions centred on how bank technology leaders could justify the cost of infrastructure investments to their organisations’ boards and translate regulatory compliance requirements into measurable business benefits.
Responding to a question on how technology managers could present the financial implications of the new CBN guidelines to management, Niethammer advised them to involve relevant stakeholders, including switch, server and storage teams, in infrastructure planning.
He said such engagements would help organisations anticipate future business requirements and ensure that their infrastructure could accommodate new services without requiring major reconstruction.
He maintained that the cost of quality cabling was relatively small compared with the overall investment in a data centre, adding that proper planning could prevent expensive infrastructure replacement.
“Cabling may represent only a small part of the overall investment, but without the fibre and the cables, the entire system will not work.”
He further explained that organisations could justify the investment by demonstrating how flexible infrastructure would enable them to introduce new services more quickly, improve operational efficiency and generate revenue.
In another question, a participant, sought clarification on whether the scalability of the infrastructure solutions presented by CommScope supported vertical or horizontal expansion and the maximum capacity they could accommodate.
Responding, Niethammer explained that the infrastructure could support both approaches, depending on the organisation’s requirements, provided adequate space and connectivity provisions were incorporated into the original design.
He said scalability, from the perspective of fibre-optic infrastructure, meant having the capacity to accommodate additional servers, equipment, storage systems and network connections as business needs increased.
He advised organisations against treating data centre installations as standalone projects, stressing the importance of making provisions for future expansion from the initial design stage.
The discussions further highlighted the importance of treating data centre infrastructure as a long-term investment, particularly as financial institutions respond to regulatory changes, increasing digital transactions and the growing adoption of artificial intelligence.
Earlier, the Vice President, Enterprise Business, Arravo, Mr Ayantola Olaayan, said the company was committed to providing end-to-end information technology solutions to organisations through consultation, infrastructure development, integration and ongoing technical support.
He explained that Arravo, which emerged from a management buyout following the decision by its former parent company, BCX, to divest from West Africa and parts of East Africa in 2019, had become a fully locally owned technology company.
According to him, the company currently has more than 200 employees working across its offices and customers’ locations, with partnerships involving major original equipment manufacturers and technology providers, including CommScope.
Olaayan said the partnership was driven by the need to provide organisations with quality technology solutions that address their specific operational requirements.
“We believe in maintaining strong, top-tier partnerships with our technology providers to deliver quality solutions to our customers.”
He explained that Arravo’s services covered the entire technology adoption process, beginning with business consultation and assessment of organisational needs, followed by solution architecture, design, procurement, integration, deployment and support.
He added that the company also provided managed services through which organisations could outsource the management of their entire information technology infrastructure or selected components under clearly defined service-level agreements.
He also highlighted the company’s training services through Arravo Academy and partnerships with other training providers, noting that capacity development remained important to helping organisations maximise their technology investments.
On cloud computing, Olaayan said Arravo worked with major providers, including Microsoft Azure and Amazon Web Services, as well as MTN for local cloud services.
He explained that the local cloud arrangement was particularly relevant to organisations that required their data to be hosted within Nigeria because of data residency and regulatory considerations.
He said the company’s experience across manufacturing, retail and financial services had strengthened its understanding of the different technology needs of businesses.
Olaayan added that Arravo was also expanding its solutions to accommodate emerging technologies, particularly artificial intelligence and intelligent networking systems, as organisations increasingly integrated AI into their business operations.
“Our objective is to support organisations throughout their IT journey, from the initial stages of technology adoption to full operational maturity.”
The partnership between Arravo and CommScope is aimed at supporting organisations with the technology infrastructure, connectivity solutions and technical expertise required to strengthen their digital operations.
