CBN Orders Banks, Fintechs to Store Payment Data in Nigeria by 2027

The Central Bank of Nigeria has directed banks, payment service providers and fintech operators to keep payment transaction data generated in Nigeria within the country from January 1, 2027.

The directive was contained in a June 15 circular on market structure requirements, data localisation, ultimate beneficial ownership disclosure and systemic oversight measures in the Nigerian payments system.

According to the circular, all institutions that facilitate payments in Nigeria must store and manage local payment data in Nigeria in line with data protection and cyber-security rules.

The apex bank also ordered operators to disclose the ultimate beneficial ownership of significant shareholders, saying the measure is intended to improve transparency and reduce concentration risk in a fast-growing payments market.

Vanguard reported that the CBN is also setting caps around market dominance, including thresholds designed to stop one operator from controlling too much of a key payment activity or related markets.

Premium Times said the regulator linked the new rules to the rapid growth of electronic payments and the emergence of dominant players in parts of the ecosystem.

The order gives banks, fintechs and other payment operators a compliance window before the January 2027 deadline, but it signals a tighter regulatory posture over data, ownership and systemic risk in digital finance.

For customers and merchants, the practical effect may be felt in how payment companies handle data infrastructure, ownership reporting and risk controls while continuing to process local transactions.

The circular also puts boards and compliance teams under pressure to review vendor contracts, cloud-hosting arrangements and ownership records before the new deadline.

Sources: Vanguard, Premium Times