The Central Bank of Nigeria (CBN) has ordered banks, payment service providers (PSPs), and other financial institutions to store and manage payment transaction data within Nigeria, a move aimed at strengthening data security, regulatory oversight, and consumer protection.
Under the new directive, all payment-related data generated from transactions conducted in Nigeria must be stored and managed locally in compliance with relevant data protection laws. The policy will take effect on January 1, 2027.
Beyond data localisation, the apex bank is also tightening transparency requirements across the financial sector. Banks, PSPs, and other financial institutions involved in digital payment operations have been directed to disclose the ultimate beneficial ownership (UBO) of significant shareholders in line with anti-money laundering and counter-terrorism financing regulations.
Institutions are expected to maintain accurate and updated ownership records and make them available to regulators whenever requested.
The CBN also introduced new reporting obligations, requiring regulated entities to submit monthly market share returns using approved templates and timelines. Financial institutions have until December 31, 2026, to align with the new market structure requirements.
To promote fair competition within the payment ecosystem, the regulator further imposed market share limits on institutions operating in both card issuing and merchant acquiring services. Under the new framework, any institution controlling more than 25 percent of the card issuing market will be restricted to a maximum of 15 percent share in the merchant acquiring segment. Similarly, institutions with more than 25 percent market share in merchant acquiring services will be limited to 15 percent in card issuing.
For customers, the directive signals a push toward stronger oversight of digital payments and greater accountability among financial institutions. For the industry, it marks another step in the CBN’s efforts to build a more transparent, secure, and competitive payment system in Nigeria.
