Stakeholders Urge CBN to Extend Data Localization Deadline

Industry stakeholders have expressed concerns regarding the Central Bank of Nigeria's (CBN) directive for data localization, which mandates all Fintech companies to host payment data within Nigeria by January 1, 2027. During a panel session at the GrowthX Forum in Lagos, stakeholders argued that the six-month timeline is unrealistic, citing severe infrastructure constraints, complex technical migrations, and high compliance costs.

They warned that adhering to this aggressive deadline could lead to widespread service disruptions and compliance failures across the digital economy. Blessing Ehize, Chief Technology Officer at FCMB, highlighted a regulatory gap, noting a lack of clarity from the CBN regarding data requirements.

He mentioned that there has been no effective engagement with the CBN to clarify what data must be stored on-premise. Hakeem Adeniji-Adele, Deputy Managing Director of eTranzact, acknowledged some engagement from the CBN but also criticized the short deadline given the volume of data involved.