The Central Bank of Nigeria (CBN) has directed banks and payment companies to keep all payment transaction data generated in Nigeria within the country from January 1, 2027.
The move is part of new measures introduced by the apex bank to make the payments industry more transparent, competitive and secure.
In a circular issued on June 15, 2026, the CBN said Nigeria’s payments sector has seen “significant structural developments within the Nigerian Payments ecosystem,” driven by rapid growth in electronic payments, wider use of digital financial services and the rise of operators with a strong presence in the market.
The bank said that although these developments have improved innovation, efficiency and financial inclusion, they have also created concerns about “market concentration, operational dependence, systemic importance, transparency of ownership structures, and the localisation of critical payment data.”
According to the CBN, the new measures are meant to “improve transparency through beneficial ownership disclosure, address concentration risk, promote a fair, competitive, and resilient payments ecosystem.”
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The regulator added that the circular is also aimed at “safeguarding the integrity of the Nigerian payments system and ensuring the localisation of payments transaction data within Nigeria.”
Under the new rules, all banks, payment service providers and other financial institutions that process payments in Nigeria must store and manage payment transaction data generated in the country within Nigeria.
The apex bank said it wants the requirement to take effect on January 1, 2027.
It also directed banks, payment service providers and other financial institutions with digital payment operations to disclose the Ultimate Beneficial Ownership (UBO) of significant shareholders.
It stressed that the institutions must keep accurate and up-to-date ownership records and provide them to the regulator whenever requested.
To reduce the risk of a few companies dominating the payments industry, the CBN introduced new market share limits.
Under the rules, any financial institution that controls more than 25 per cent of the consumer issuing market cannot control more than 15 per cent of the merchant acquiring market at the same time.
The same restriction applies to institutions with dominant positions in merchant acquiring activities.
The apex bank also directed all regulated entities to submit monthly reports showing their market share.
Affected institutions have until December 31, 2026, to comply with the market structure requirements.
The CBN warned that it will monitor compliance and “may, where necessary, impose supervisory sanctions” on institutions that fail to follow the new rules.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X