The Central Bank of Nigeria (CBN) has directed banks, fintech companies and other operators in the payments ecosystem to ensure that all payment transaction data generated in the country is stored and managed within Nigeria.
The apex bank also introduced fresh measures aimed at promoting transparency, reducing market concentration and strengthening oversight in the payments industry.
The directive was contained in a circular dated June 15, 2026, titled “Introduction of Market Structure Requirements, Data Localisation, Ultimate Beneficial Ownership Disclosure, and Systemic Oversight Measures in the Nigerian Payments System.”
In the circular, the CBN said all financial institutions and payment operators facilitating transactions within the country must comply with the new data localisation requirement.
According to the apex bank, the policy is in line with existing data protection laws and regulations applicable in Nigeria.
The circular read, “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 CBN added that “all affected financial institutions shall fully comply with this requirement effective January 1, 2027.”
The apex bank also directed banks, payment service providers and other financial institutions with digital payment operations to disclose the ultimate beneficial owners of significant shareholders.
It said the move was necessary to improve transparency in the sector and ensure compliance with anti-money laundering and counter-terrorism financing regulations.
The CBN stated, “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 accordance with applicable extant laws and regulations, including Anti-Money Laundering, Combating the Financing of Terrorism and Counter Proliferation Financing regulations.”
The regulator further directed the affected institutions to keep accurate and updated records of their beneficial owners.
It said the institutions “shall maintain accurate and up-to-date UBO records and make such information available to the CBN upon request.”
Explaining the reason for the new requirements, the CBN said Nigeria’s payments system had expanded significantly 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 characterised by rapid growth in electronic payments, increasing adoption of digital financial services and the emergence of operators with substantial market presence across key payment activities.”
It, however, noted that the growth had also created new risks requiring stronger regulatory attention.
The apex bank stated that “these developments have also raised concerns relating to market concentration, operational dependence, systemic importance, transparency of ownership structures, and the localisation of critical payment data.”
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As part of efforts to prevent excessive dominance in the industry, the CBN introduced market structure requirements for institutions involved in card issuing and merchant acquiring.
Under the new rule, any licensed financial institution engaged in card issuing activities and holding more than 25 per cent market share in that segment will not be allowed to hold more than 15 per cent market share in merchant acquiring within the same period.
The circular stated that “any licensed financial institution engaged in card issuing activities that holds more than 25 per cent market share in card issuing shall not hold more than 15 per cent market share in merchant acquiring activities during the same period.”
Similarly, the CBN said “any licensed financial institution engaged in merchant acquiring activities that holds more than 25 per cent market share in merchant acquiring shall not hold more than 15 per cent market share in card issuing activities.”
The apex bank also directed all regulated entities to submit monthly market share returns as part of the new oversight measures.
According to the CBN, the returns will enable it to monitor the structure of the payments system and identify operators whose activities may create systemic risks.
It directed affected institutions to take steps to comply fully with the market structure requirements before the end of the year.
The circular stated that “all affected financial institutions are required to take necessary measures to achieve full compliance not later than December 31, 2026.”
The new rules are expected to affect banks, fintech companies, payment service providers and other financial institutions operating within Nigeria’s fast-growing digital payments space.
