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CBN Orders Banks, Fintechs to Localise Payment Data by 2027
The Central Bank of Nigeria (CBN) has directed banks, fintechs, mobile money operators, and other payment service providers to store all payment transaction data generated in Nigeria on local servers.
The directive, contained in a circular signed by Rakiya O. Yusuf, Director of the Payments System Supervision Department, requires full compliance by January 1, 2027.
According to the CBN, the move is part of efforts to strengthen oversight, improve transparency, and reduce risks in Nigeria’s fast-growing digital payments ecosystem.
“All financial institutions shall ensure that payments transaction data generated within Nigeria are stored and managed in Nigeria in accordance with data protection laws,” the circular stated.
The apex bank explained that rapid growth in electronic transactions and digital services has created concerns around market concentration, dependence on foreign infrastructure, and ownership transparency. Localising data, it said, will safeguard the integrity of the financial system.
Beyond data localisation, the CBN introduced ownership transparency rules, requiring banks and payment firms to disclose Ultimate Beneficial Owners (UBOs) of significant shareholders, in line with anti-money laundering regulations.
The regulator also set market share limits to prevent excessive concentration. Institutions controlling more than 25% of card issuing cannot hold more than 15% of merchant acquiring, and vice versa. Firms must submit monthly market share reports and comply by December 31, 2026.
The measures follow warnings from the Nigeria Data Protection Commission (NDPC) about coordinated cyber threats targeting financial systems and critical infrastructure.
The CBN said the reforms aim to create a fairer, more competitive payments ecosystem, ensuring resilience as digital transactions expand across Africa’s largest economy.