CBN Sets 2027 Deadline for Nigerian Banks to Localize Data

The Central Bank of Nigeria (CBN) has reaffirmed January 1, 2027, as the deadline for banks and regulated financial institutions to store critical payment transaction data within Nigeria. Lamido Abubakar Yuguda, the CBN Deputy Governor for Financial System Stability, announced this during an executive regulatory dialogue organized by the CBN and the National Information Technology Development Agency (NITDA) in Lagos.

He warned that violations of this directive would result in sanctions. The policy aims to improve regulatory oversight, strengthen the financial system's resilience, and protect sensitive financial information.

Yuguda acknowledged the role of cloud computing in enhancing efficiency but cautioned about the cybersecurity risks associated with increased reliance on third-party technology providers. He stated that while data localization is crucial, it must be complemented by robust cybersecurity measures and effective risk management practices.

The CBN's stance reflects ongoing regulatory pressure on financial institutions to meet the upcoming deadline while ensuring their technology systems are secure.