CBN mandates local storage of payment data by banks and fintechs
The Central Bank of Nigeria (CBN) has issued a new directive requiring banks, fintechs, and other payment service providers to store all payment transaction data generated within Nigeria on local servers. The move aims to strengthen regulatory oversight and enhance data sovereignty in the fast-growing digital payments sector. The circular, signed by Rakiya Yusuf, also introduces new rules on beneficial ownership disclosure and market structure for payment operators. The CBN says these reforms are necessary to address concerns around market concentration, operational dependence, and data security.
TLDR
- The CBN has directed all financial institutions to store payment transaction data generated in Nigeria on local servers in line with national data protection laws.
- Full compliance with the data localisation requirement is expected by December 31, 2026, with enforcement starting from January 1, 2027.
- New rules require banks and payment service providers to disclose and maintain accurate records of their ultimate beneficial owners for regulatory review.
- Market dominance limits have been set: institutions with over 25% share in card issuing or merchant acquiring must not exceed 15% in the other segment within a rolling 12-month period.
- The CBN will monitor compliance and may impose sanctions for violations, aiming to promote transparency, competition, and the integrity of Nigeria’s payments ecosystem.
