The central bank of Nigeria has introduced sweeping new compliance requirements for banks, fintechs, and payment service providers, mandating full disclosure of ultimate beneficial owners and imposing strict rules on data localisation and market concentration across the digital payments ecosystem.
The directive, issued by the Central Bank of Nigeria (CBN) in a circular dated June 15, 2026, signals a significant regulatory tightening of the country’s fast-growing fintech sector, which has expanded rapidly in recent years alongside rising adoption of mobile money and electronic payments.
According to the circular signed by Dr. Rakiya Yusuf, Director of the Payments System Supervision Department, all regulated institutions—including deposit money banks, mobile money operators, payment terminal service providers, switching companies, and super agents—must disclose the ultimate beneficial ownership (UBO) of significant shareholders and maintain continuously updated ownership records for regulatory review.
The CBN stated that the move is intended to improve transparency, reduce systemic risk, and strengthen oversight of ownership structures within Nigeria’s increasingly complex digital financial ecosystem.
Data localisation and compliance deadline
In addition to ownership disclosure, the apex bank has introduced a mandatory data localisation policy requiring that all payment transaction data generated within Nigeria must be stored and processed within the country.
Financial institutions have been given until January 1, 2027, to fully comply with the requirement.
The CBN explained that the measure is designed to strengthen data security, improve regulatory access to transaction records, and align with Nigeria’s broader data protection framework.
The new framework also introduces structural limits aimed at preventing excessive concentration in the payments sector.
Under the rules, any institution holding more than 25% market share in consumer issuing will be restricted from exceeding 15% in merchant acquiring within the same period, and vice versa.
The central bank said the policy is intended to reduce concentration risk, promote competition, and prevent dominant players from exerting excessive influence across multiple segments of the payments value chain.
