CBN orders banks and fintechs to localise payment data and disclose beneficial owners

The Central Bank of Nigeria (CBN) has directed banks, fintechs, and other payment service providers to disclose their ultimate beneficial owners and comply with new rules designed to restructure Nigeria’s fast-growing digital payments ecosystem.In a circular dated June 15, 2026, signed by Dr. Rakiya Yusuf, Director of the Payments System Supervision Department, the apex bank mandated Deposit Money Banks, Microfinance Banks, Mobile Money Operators, switching companies, and other licensed firms to maintain accurate records of ownership and provide them to regulators when requested.The directive also introduced:Data localisation: All payment transaction data generated in Nigeria must be stored within the country by January 1, 2027.Market share limits: Institutions with more than 25% share in consumer issuing cannot exceed 15% in merchant acquiring, and vice versa, to curb concentration risks.Monthly reporting: Regulated entities must submit market share returns using prescribed templates.CBN Governor Olayemi Cardoso said the measures align with anti-money laundering and counter-terrorism financing regulations, aiming to strengthen transparency, oversight, and competition in the payments industry.The apex bank noted that while digital financial services have boosted innovation and inclusion, they have also raised concerns about ownership opacity, systemic importance, and data security. The new framework seeks to safeguard the integrity of Nigeria’s payments system and reduce risks posed by dominant players.Affected institutions have until December 31, 2026, to fully comply with the new requirements.

 The Central Bank of Nigeria (CBN) has directed banks and payment service providers (PSPs) to store and manage payment transaction data in Nigeria.   In a circular signed by Rakiya Yusuf, director of the payments system supervision department, on Monday, CBN said all financial institutions facilitating payments within Nigeria should ensure that data generated in the country are stored and managed locally in line with applicable data protection laws.   Which is better CBN directs banks, PSPs to store, manage payment transaction data in Nigeria or CBN directs banks, PSPs to store, manage payment data in Nigeria   The requirement will take effect from January 1, 2027.     CBN also directed banks, PSPs and other financial institutions (OFI) with digital payment operations to disclose the ultimate beneficial ownership (UBO) of significant shareholders in line with anti-money laundering and counter-terrorism financing regulations.   The institutions are required to maintain accurate and up-to-date ownership records and make them available to the regulator on request.   The apex bank also directed regulated entities to submit monthly market share returns using prescribed templates and timelines.     Affected institutions have until December 31, 2026, to comply with the new market structure requirements.   CBN said it would monitor compliance and impose supervisory sanctions where necessary in line with applicable laws, regulations and guidelines.   The financial regulator had also limited the market share for financial institutions involved in card issuing and merchant acquiring services.   CBN said any financial institution controlling over 25 percent of the card issuing market would be limited to 15 percent in merchant acquiring market.     Also, the apex bank said financial institutions with over 25 percent share in merchant acquiring market would be restricted to 15 percent in card issuing segment.

CBN mandates local data storage for payment transactions and unveils new ownership disclosure rules to enhance transparency in Nigeria’s digital payments industry.

•Mandates beneficial ownership disclosure •Sets 25% threshold, 15% cross-market cap •Compliance deadline set for Dec. 31, 2026 By Babajide Komolafe The Central Bank of Nigeria, CBN, has directed banks, fintechs and other operators in the payments ecosystem to store all payment transaction data generated in Nigeria within the country, while also introducing measures to curb […] The post CBN orders fintechs, banks to localise payment data, caps market dominance appeared first on Vanguard News.

The apex bank said the new measure aims to promote transparency, reduce market concentration risks, and enhance the resilience of the country's payments ecosystem. The post CBN orders banks, fintechs to disclose owners, store payment data in Nigeria appeared first on Premium Times Nigeria.