The Central Bank of Nigeria (CBN) has directed banks, fintechs, mobile money operators, and other payment service providers to store payment transaction data generated within Nigeria on local servers. Operators have until January 1st, 2027, to comply.
The move is part of a broader regulatory push to strengthen oversight of the country’s fast-growing digital payments ecosystem.
The directive, contained in a circular signed by Rakiya Yusuf, the apex bank’s Director of Payments System Supervision Department, introduces new market structure requirements, data localisation rules, ultimate beneficial ownership (UBO) disclosure obligations, and systemic oversight measures for payment system participants.
Payment data must stay in Nigeria
Under the new framework, all entities facilitating payment transactions in Nigeria must ensure that transaction data generated locally is stored and managed within the country in line with Nigerian data protection laws. The CBN said the requirement is aimed at improving regulatory visibility, strengthening consumer protection, and reducing operational risks associated with offshore data storage.
For fintechs and payment processors that rely on foreign cloud infrastructure or cross-border data processing arrangements, the directive could require significant infrastructure adjustments over the next six months.
The policy aligns Nigeria with a growing list of countries seeking greater control over critical digital infrastructure and financial data.
New disclosure rules for ownership structures
Beyond data localisation, the circular introduces stricter transparency requirements for payment service providers.
Operators must now disclose their ultimate beneficial owners — the individuals who ultimately own or control a company, even where ownership is layered through multiple entities. The CBN believes the measure will improve transparency, strengthen anti-money laundering efforts, and reduce risks associated with opaque ownership structures.
The regulator has increasingly prioritised governance and compliance across the financial services sector as digital payments continue to grow in scale and complexity.
Victoria Fakiya – Senior Writer
Techpoint Digest
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Greater oversight for critical payment operators
The CBN also unveiled systemic oversight measures that could subject certain payment service providers to enhanced regulatory supervision based on their importance to Nigeria’s payments infrastructure.
The move reflects the regulator’s focus on ensuring resilience across the ecosystem, particularly as digital payments become central to commerce, banking, and government services.
With Nigeria ranking among the world’s largest instant payment markets, the latest directive signals the CBN’s intention to tighten control over the infrastructure underpinning the country’s digital economy while improving transparency and operational accountability.
