Nigeria Orders Payment Firms to Store Transaction Data Locally From 2027

June 16, 2026

Mintesinot Nigussie

Nigeria’s central bank has introduced new requirements for the country’s digital payments industry, requiring banks, fintech companies, mobile money operators and other payment service providers to store all domestic payment transaction data on servers located within Nigeria from January 1, 2027.

The directive, issued by the Central Bank of Nigeria (CBN), forms part of regulatory measures aimed at strengthening supervision of the country’s fast-growing electronic payments ecosystem and improving control over critical financial data.

Rakiya O. Yusuf, director of the Payments System Supervision Department at the CBN, said payment operators must ensure that transaction records generated in Nigeria are stored and managed locally while complying with existing data protection rules.

The requirement is expected to reshape operations for providers that currently depend on overseas data infrastructure for parts of their payment services. The regulator said the expansion of digital transactions and financial technology services has created new operational and oversight challenges, including concerns around external infrastructure dependence, transparency of ownership and the control of sensitive payment information.

The CBN is also tightening transparency requirements for digital financial service providers by requiring banks, payment firms and other operators to identify and maintain records of their Ultimate Beneficial Owners. The measure is aligned with existing anti-money laundering and counter-terrorism financing obligations.

The regulator has introduced additional restrictions aimed at addressing concentration risks in the payments market. Companies holding more than 25 percent of the card issuing market will be limited to a maximum 15 percent share of merchant acquiring activities, while firms with more than 25 percent of merchant acquiring will face the same restriction on card issuing.

Affected institutions have until December 31, 2026 to comply with the new market structure requirements and will be required to submit monthly market share reports to the central bank.

The new rules come after concerns were raised over cybersecurity risks facing Nigeria’s financial sector, including warnings from the Nigeria Data Protection Commission about coordinated threats targeting digital infrastructure.