CBN Mandates Local Storage of Payment Data by 2027

The Central Bank of Nigeria (CBN) has issued a circular mandating that all banks and payment service providers must localize payment transaction data by January 1, 2027. This directive, signed by Rakiya Yusuf, Director of the Payment System Supervisory Department, aims to strengthen regulatory oversight and enhance data sovereignty within Nigeria's digital payment ecosystem.

The CBN has observed significant structural developments and rapid growth in electronic payments and digital financial services, leading to concerns regarding market concentration and ownership transparency. Financial institutions are required to ensure that payment transaction data generated within Nigeria is stored and managed domestically, in compliance with local data protection laws.

Additionally, the CBN is introducing new market structure rules to limit excessive market dominance in the payment industry, including restrictions on market share for card issuers and merchant acquirers. Institutions must comply with these requirements by December 31, 2026, to ensure transparency and combat money laundering and illicit financial flows.