How NITDA and Galaxy Backbone Are Rewiring Nigeria’s Digital Economy
By Abbas Badmus
Nigeria’s ambition to become a leading digital economy in Africa depends not only on the brilliance of its entrepreneurs, but also on the infrastructure that supports their ideas. Across the country, thousands of startups are emerging with innovative solutions in fintech, healthtech, agritech, education, logistics, and artificial intelligence. Yet many of these businesses face a common challenge: access to affordable, reliable, and secure digital infrastructure.
In a move that could reshape the country’s innovation landscape, the National Information Technology Development Agency (NITDA), through the Office for Nigerian Digital Innovation (ONDI), has partnered with Galaxy Backbone Limited to provide subsidised sovereign cloud services for startups participating in the iHatch programme.
The partnership signals a major step toward strengthening Nigeria’s digital independence while giving local innovators the technological backbone needed to compete globally.
For years, many Nigerian startups have relied heavily on foreign cloud service providers for data storage and digital operations. While these platforms offer flexibility, they often expose startups to high foreign exchange costs, data residency concerns, and operational uncertainties linked to international billing systems.
The new collaboration between NITDA and Galaxy Backbone seeks to change that narrative by introducing startups to the Galaxy Cloud Platform (GxCP), a sovereign cloud infrastructure designed to keep Nigerian data within Nigerian-controlled systems.
Backed by Uptime-certified Tier III and Tier IV data centres, a nationwide fibre-optic network, and advanced cybersecurity systems, the platform provides enterprise-grade infrastructure previously accessible mainly to large corporations and government institutions.
For startups operating on limited budgets, the opportunity to access such infrastructure at subsidised rates could significantly reduce operational costs and improve scalability.
The conversation around data sovereignty has become increasingly important in the global digital economy. Nations are becoming more conscious of where their data is stored, who controls it, and how vulnerable it may be to foreign regulations or cyber threats.
Nigeria is no exception.
By encouraging startups to host data locally through Galaxy Backbone’s infrastructure, the partnership aligns with broader national objectives around digital sovereignty, cybersecurity, and economic resilience.
The Director General of NITDA, Kashifu Inuwa Abdullahi, described the initiative as part of the agency’s commitment to building a resilient and globally competitive startup ecosystem.
His remarks reflect a growing recognition that innovation cannot thrive without strong digital infrastructure. Startups require more than funding and mentorship; they need stable systems capable of supporting rapid growth, protecting sensitive user information, and ensuring uninterrupted service delivery.
One of the most practical features of the initiative is its protection against foreign exchange volatility — a challenge that has become increasingly burdensome for Nigerian startups dependent on international cloud providers.
Under the partnership, all post-credit billing will be conducted in Nigerian Naira. This means startups will no longer have to struggle with fluctuating exchange rates when paying for critical digital services.
For many founders, especially those in early-stage development, this could provide much-needed financial predictability.
The cloud support will also follow a milestone-based model. Startups will receive cloud credits across different phases of their growth journey — “Build,” “Validate,” and “Scale.” The structured approach ensures that resources are allocated based on measurable progress while encouraging sustainability and accountability.
These credits will remain valid for 12 months before startups transition to standard or pay-as-you-go billing models.
The partnership extends beyond simply providing cloud space.
Galaxy Backbone will deploy a dedicated Startup Success Team to assist participating companies with onboarding, adoption, and optimisation. Automated monitoring systems will also help startups manage their resource usage effectively, preventing unnecessary costs and improving operational efficiency.
This hands-on support model demonstrates an understanding that many startups require technical guidance alongside infrastructure access. In an ecosystem where founders often juggle product development, customer acquisition, and fundraising simultaneously, technical support can be the difference between growth and stagnation.
According to GBB’s General Manager of Strategic Partnerships, Abdul Malik Suleiman, the initiative is a deliberate effort to bridge the gap between infrastructure and innovation.
That gap has long existed in Nigeria’s tech ecosystem. While talent and ideas are abundant, many startups struggle to access the systems needed to transform concepts into scalable businesses. By lowering these barriers, the partnership aims to create an environment where innovation can flourish sustainably.
The iHatch programme has already emerged as one of Nigeria’s growing platforms for startup development. With more than 160 startups trained through 37 hub partners nationwide, the initiative is helping entrepreneurs gain the skills, mentorship, and exposure needed to build viable businesses.
The integration of sovereign cloud infrastructure into the programme adds another layer of value.
National Coordinator of ONDI, Victoria Fabunmi, noted that incorporating Galaxy Backbone’s cloud services into iHatch enhances the ability of startups to scale using globally competitive tools.
Her statement underscores a critical reality: innovation ecosystems thrive when infrastructure, policy, talent, and support systems work together.
Nigeria’s startup sector has already gained international recognition, attracting significant investment and producing globally visible companies. However, sustaining that momentum requires deeper investment in local infrastructure that reduces dependence on foreign systems.
The partnership between NITDA and Galaxy Backbone represents more than a support programme for startups. It reflects a broader national strategy to position Nigeria as a digitally self-reliant economy capable of supporting homegrown innovation at scale.
As digital transformation accelerates across industries, cloud computing is becoming as essential as electricity and internet connectivity. Countries that control their digital infrastructure will likely enjoy greater economic stability, stronger cybersecurity, and increased technological independence.
For Nigerian startups, access to sovereign cloud services could unlock new opportunities for growth, experimentation, and global competitiveness without the burden of excessive infrastructure costs.
More importantly, it sends a strong message that Nigeria is beginning to build not just startups, but the digital foundations necessary for long-term innovation leadership.
In an era where data is increasingly viewed as a strategic national asset, initiatives like this may prove crucial in shaping the future of Africa’s largest digital economy.
