Nigeria Risks Repeating Oil Economy Mistakes Through Foreign Data Dependence — Oyedele
By Pan Afric Reporters
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has warned that Nigeria risks repeating the costly mistakes of its oil-dependent economy by relying heavily on foreign infrastructure for data storage and processing, urging the country to harness the economic value of its digital resources.
The warning was contained in a press release issued by the Federal Ministry of Finance and signed by Efe Ovuakporie, Head of the Information and Public Relations Unit, following Oyedele’s convocation lecture at the University of Uyo, Akwa Ibom State, on Wednesday.
Delivering the lecture titled “Digital Sovereignty and Ethics: Guarding the Economy for the Next Generation,” Oyedele drew parallels between Nigeria’s crude oil export and refined petroleum import model and its growing dependence on offshore data infrastructure.
He said the country must avoid a similar pattern in the digital economy, which could lead to the loss of domestic value, technical expertise, employment opportunities and substantial foreign exchange.
Citing figures from the Nigerian Communications Commission (NCC), the minister disclosed that Nigeria had more than 157 million active internet subscriptions as of May 2026. However, he noted that over 90 per cent of the country’s data was hosted abroad, based on an estimate by the Nigeria Data Protection Commission.
Oyedele said the dependence on foreign data hosting and processing facilities resulted in foreign exchange outflows, limited opportunities for local businesses and professionals, and exposed Nigerian data to foreign laws and jurisdictions.
He explained that digital sovereignty meant the ability of a country to determine, under its own laws, how its data was collected, stored, accessed and utilised, stressing that it did not imply isolation from the global digital economy.
To address the challenge, he called for deliberate investment in domestic digital infrastructure, stronger regulatory institutions and the development of local expertise and businesses capable of transforming data into valuable products and services within Nigeria.
On artificial intelligence, Oyedele urged graduates to embrace emerging technologies while preserving their independent judgement, critical thinking, creativity, empathy and integrity.
He also cautioned young Nigerians against irresponsible conduct in the digital space, noting that their online activities increasingly shape their personal and professional identities.
According to him, “online attention does not necessarily translate into respect, popularity into credibility or virality into value creation.”
The minister further warned that artificial intelligence could amplify misinformation, impersonation and dishonesty, making ethical conduct and public trust increasingly important.
Oyedele charged universities to move beyond the traditional award of certificates and become centres of innovation, entrepreneurship, ethical leadership and practical problem-solving.
He said the relevance of higher institutions should also be measured by the problems their graduates solve, businesses they establish and contributions they make to their communities.
Identifying agriculture, energy, healthcare, marine resources, environmental management and digital services as sectors with significant innovation potential, he urged universities to equip students with practical knowledge and skills to develop solutions.
The minister outlined five responsibilities for graduates: lifelong learning, value creation, integrity, responsible digital citizenship and active participation in nation-building.
He emphasised that Nigeria’s digital future would depend not only on technology and infrastructure but also on the values, choices and capabilities of its citizens.
Quoting management thinker Peter Drucker, Oyedele challenged the graduates to become active contributors to national development, saying: “The best way to predict the future is to create it.”
