Nigerian Banks Urge CBN for Extension on Data Localisation

Banks and fintech companies in Nigeria are seeking an extension on the Central Bank of Nigeria’s (CBN) data localisation directive, which mandates that payment transaction data generated in Nigeria be stored locally by January 2027. Industry executives expressed concerns at the inaugural GrowthX by Techeconomy and TiLAwards in Lagos, emphasizing that the deadline is insufficient for the complex migration of large volumes of financial data from overseas cloud environments to local infrastructure.

Blessing Ehize, Chief Technology Officer of FCMB, highlighted the need for clearer regulatory guidance on which data must be stored on-premise versus what can remain in hybrid-cloud environments. He noted that there has been a lack of engagement with the CBN for clarity on these issues.

Hakeem Adeniji-Adele, Deputy Managing Director of eTranzact, described the six-month timeframe as tight due to the volume of data involved and proposed a phased approach to migration. Both executives stressed the importance of careful planning to avoid operational risks.