The Central Bank of Nigeria (CBN) has directed banks, fintechs and other operators in the payments ecosystem to ensure all data generated in the country from payment transactions are stored and managed in Nigeria.
The apex bank also unveiled new measures to improve transparency, reduce market concentration and boost oversight in the payments space.
The directive was contained in a circular titled “Introduction of Market Structure Requirements, Data Localisation, Ultimate Beneficial Ownership Disclosure, and Systemic Oversight Measures in the Nigerian Payments System,” dated June 15, 2026, it was reported.
The CBN said in the circular that all financial institutions and payment operators facilitating transactions in the country are required to comply with the new data localisation requirement.
The apex bank said the policy was in line with existing data protection laws and regulations applicable in Nigeria.
“All financial institutions and participants facilitating payments within Nigeria shall ensure that payments transaction data generated within Nigeria are stored and managed in Nigeria in accordance with data protection laws and regulations applicable in Nigeria. The circular read.
“All affected financial institutions shall fully comply with this requirement effective January 1, 2027,” the CBN added.
The apex bank also directed banks, payment service providers and other financial institutions having digital payment operations to disclose ultimate beneficial owners of significant shareholders.
The move was necessary to boost transparency in the sector and comply with anti-money laundering and counter-terrorism financing rules, it said.
The CBN said: “All Deposit Money Banks, Payment Service Providers and other financial institutions with digital payments footprints shall disclose the Ultimate Beneficial Ownership (UBO) of significant shareholders in line with extant applicable laws and regulations, including Anti-Money Laundering, Combating the Financing of Terrorism and Counter Proliferation Financing regulations.
The regulator also instructed the impacted institutions to maintain accurate and up-to-date records of beneficial owners.
It said the institutions “shall keep accurate and current UBO records and provide such information to the CBN upon request.
The CBN said the new requirements were driven by the significant expansion of Nigeria’s payments system in recent years, driven by electronic payments, digital financial services and the emergence of major operators with strong market presence.
The bank said, “The Nigerian payments ecosystem has witnessed significant structural developments including rapid growth in electronic payments, increasing adoption of digital financial services and the emergence of operators with significant presence in the market across key payment activities.
But it said the growth had also created new risks that require greater regulatory attention.
“The developments have also given rise to concerns relating to market concentration, operational dependence, systemic importance, transparency of ownership structures and localisation of critical payment data,” the apex bank said.
As part of efforts to prevent excessive dominance in the industry, the CBN also introduced market structure requirements for the institutions involved in card issuing and merchant acquiring.
Under the new rule, no licensed financial institution involved in card issuing activities with more than 25 per cent market share in that segment will be allowed to hold more than 15 per cent market share in merchant acquiring in the same period.
The circular stated that “any licensed financial institution engaged in card issuing activities that has more than 25 per cent of the market share in card issuing shall not have more than 15 per cent of the market share in merchant acquiring activities in the same period.
“Any licensed financial institution in the merchant acquiring business with more than 25 per cent market share in the merchant acquiring business shall not hold more than 15 per cent market share in the card issuing activities,” the CBN said.
As part of the new oversight measures, the apex bank also directed that all regulated entities submit monthly market share returns.
The returns will help the CBN monitor the structure of the payments system and identify operators whose activities could create systemic risks, the CBN said.
It told the affected institutions to make arrangements to comply with the market structure requirements in full by year-end.
The circular stated that “all affected financial institutions shall take necessary measures to achieve full compliance not later than 31st December 2026.”
The new rules are expected to impact banks, fintech companies, payment service providers and other financial institutions operating in Nigeria’s fast-growing digital payments space.
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