CBN Orders Banks, Fintechs to Localise Payment Data, Caps Market Dominance

The Central Bank of Nigeria (CBN) has introduced new regulatory measures requiring banks, fintech companies and payment service providers to keep payment transaction data generated in Nigeria on local servers.

The directive, contained in a circular issued on June 15, 2026, is part of broader reforms aimed at strengthening oversight, improving transparency and ensuring stability within the country’s digital payments ecosystem.

The circular, titled “Introduction of Market Structure Requirements, Data Localisation, Ultimate Beneficial Ownership Disclosure, and Systemic Oversight Measures in the Nigeria Payments System,” outlined new obligations for operators in the financial technology space.

The CBN said all institutions involved in facilitating payments within Nigeria must ensure that transaction data generated locally is stored and managed within the country in compliance with applicable data protection laws.

The regulator stated that the move would enhance the security of Nigeria’s payment infrastructure and provide stronger regulatory access to critical financial information.

Beyond data localisation, the apex bank introduced new requirements on ownership disclosure for financial institutions and payment companies with digital payment operations.

The CBN directed Deposit Money Banks, Payment Service Providers and other relevant operators to reveal the Ultimate Beneficial Ownership (UBO) details of significant shareholders.

According to the regulator, the disclosure requirement must align with existing laws covering Anti-Money Laundering, Combating the Financing of Terrorism and Counter Proliferation Financing.

The bank also instructed regulated entities to maintain accurate and updated records of their beneficial owners and make such information available whenever requested by the CBN.

The latest policy comes amid the rapid growth of Nigeria’s digital payment sector, driven by increased adoption of fintech platforms, mobile banking services and electronic transactions.

The CBN has continued to introduce reforms aimed at improving confidence in the financial system while addressing concerns around operational risks, market concentration and consumer protection.

The regulator’s new framework also seeks to promote fair competition by preventing excessive dominance by a few major players in the payments industry.

Industry stakeholders are expected to review the new requirements and align their operations with the updated regulatory standards.

The CBN said the measures would support a safer, more transparent and resilient payments environment capable of sustaining Nigeria’s growing digital economy.