CBN orders banks and fintechs to move payment data to local servers by 2027

The Central Bank of Nigeria has issued a directive requiring all banks, fintech companies, and payment service providers to relocate payment transaction data to servers physically located within Nigeria. The mandate, announced by Rakiya Yusuf, director of the CBN's Payment System Supervision Department, takes effect immediately with full compliance required by January 1, 2027.

The directive applies to a broad range of entities operating in Nigeria's digital payments sector, including deposit money banks, microfinance banks, mobile money operators, payment switches, payment terminal service providers, solution providers, and super agents. Each entity must ensure that transaction data generated from activities within Nigeria's borders is stored and managed on local infrastructure rather than on foreign servers.

According to the circular issued by the Payment System Supervision Department, the localization requirement is part of a wider regulatory restructuring effort. The framework introduces new rules on beneficial ownership disclosure obligations and system oversight measures designed to strengthen the CBN's regulatory capacity over an increasingly digital payments landscape.

The move reflects a broader push by African regulators to exercise greater control over financial data flows within their borders. Nigeria's digital payment ecosystem has expanded rapidly in recent years, with mobile money operators and fintech platforms processing billions of transactions annually.

By mandating local data storage, the CBN aims to enhance its oversight capabilities and ensure transaction records remain accessible to regulatory authorities without requiring coordination with foreign governments or private infrastructure providers.