The Central Bank of Nigeria has issued a directive requiring all banks, fintech companies, and payment service providers to store payment transaction data generated within Nigeria exclusively on local servers, in compliance with the country’s data protection laws. The new regulation takes effect January 1, 2027.
In a circular released June 15, 2026, the CBN also introduced measures to prevent excessive market concentration in the payments industry. Under the new framework, any institution with more than 25% market share in card issuing cannot simultaneously hold more than 15% in merchant acquiring, and vice versa.
The regulator further mandated that all financial institutions with digital payment operations must disclose ultimate beneficial ownership of significant shareholders, maintaining accurate records available for CBN review upon request. These requirements align with anti-money laundering and counter-terrorism financing regulations.
The CBN cited rapid growth in digital payments, increasing adoption of financial services, and the emergence of dominant players as factors necessitating these measures. Financial institutions have until December 31, 2026, to achieve full compliance and must submit monthly market share reports.
