The Central Bank of Nigeria (CBN) has directed banks, fintech companies, mobile money operators, payment processors, and other participants in the country’s digital payments ecosystem to ensure that all payment transaction data generated within Nigeria is stored and managed locally from January 1, 2027.
The directive forms part of a broader regulatory effort to strengthen oversight, improve transparency, reduce systemic risks, and enhance governance across Nigeria’s rapidly expanding digital payments industry.
In a circular issued by the CBN’s Payments System Supervision Department and signed by Director Rakiya O. Yusuf, the apex bank said the measures were introduced in response to significant developments in the payments ecosystem, including the rapid growth of electronic transactions and the increasing concentration of critical payment services among a small number of operators.
Under the new requirements, all financial institutions and payment service participants facilitating transactions within Nigeria must ensure that payment data generated in the country is stored and managed on infrastructure located within Nigeria, in compliance with applicable data protection laws. Institutions are expected to achieve full compliance by the January 2027 deadline.
Strengthening Data Sovereignty
The policy marks one of Nigeria’s most significant data localisation initiatives in the financial sector. By keeping payment data within the country’s borders, regulators aim to improve supervisory oversight, strengthen cybersecurity, support domestic digital infrastructure, and ensure that critical financial information remains subject to Nigerian legal and regulatory frameworks.
Industry observers believe the move could encourage further investment in local data centres and cloud infrastructure while requiring some banks and fintech companies that currently rely on overseas hosting services to adapt their technology strategies.
New Ownership Disclosure Requirements
Alongside the data localisation mandate, the CBN has introduced stricter beneficial ownership disclosure requirements for payment service providers.
The regulator is requiring operators to provide greater transparency around ownership structures and governance arrangements as part of efforts to improve accountability and address concerns over market concentration within the digital payments ecosystem.
According to the central bank, while the rapid growth of digital financial services has accelerated innovation, efficiency, and financial inclusion, it has also increased concerns about operational dependencies, ownership transparency, and the concentration of critical infrastructure among a limited number of players.
Digital Payments Continue to Surge
The directive comes as Nigeria’s digital payments market records sustained growth. The CBN recently reported that transactions processed through the Nigeria Inter-Bank Settlement System (NIBSS) Instant Payment platform increased from approximately five billion in 2022 to nearly 11 billion in 2024, reflecting the country’s accelerating adoption of electronic financial services.
As transaction volumes continue to rise and fintech innovation reshapes the financial landscape, regulators are placing greater emphasis on governance, resilience, transparency, and consumer protection.
The latest measures signal the CBN’s intention to strengthen confidence in Nigeria’s payments infrastructure while ensuring the sector’s regulatory framework keeps pace with its rapid expansion.
