CBN Orders Banks, Fintechs to Disclose Owners, Store Payment Data in Nigeria

The Central Bank of Nigeria (CBN) has introduced sweeping new regulations for banks, fintech firms and other digital payment operators, directing them to disclose their Ultimate Beneficial Owners (UBOs) and ensure that payment transaction data generated within Nigeria is stored locally.

The directive contained in a circular issued on Monday, affects Deposit Money Banks (DMBs), Payment Service Providers (PSPs), fintech companies and other financial institutions with digital payment operations.

According to the apex bank, the measures are designed to improve transparency, reduce market concentration risks and strengthen the resilience of Nigeria’s rapidly expanding digital payments ecosystem.

The CBN noted that the rapid growth of electronic payments, coupled with the emergence of dominant players in key segments of the industry, has heightened concerns about ownership transparency, operational dependence and the location of critical payment data.

Under the new framework, all affected institutions are required to disclose the Ultimate Beneficial Ownership of significant shareholders in line with existing Anti-Money Laundering, Counter-Terrorism Financing and Counter-Proliferation Financing regulations.

The institutions are also expected to maintain accurate and updated ownership records and make such information available to the CBN whenever requested.

In a major policy shift aimed at strengthening data sovereignty, the apex bank further directed that all payment transaction data generated within Nigeria must be stored and managed within the country.

The CBN stated that full compliance with the data localisation requirement must be achieved by January 1, 2027.

The regulator also introduced new competition rules to prevent excessive dominance in the card issuing and merchant acquiring segments of the payments industry.

Under the guidelines, any institution controlling more than 25 per cent of the card-issuing market over a rolling 12-month period will be restricted to a maximum of 15 per cent market share in merchant-acquiring activities.

Likewise, institutions holding more than 25 per cent market share in merchant acquiring will not be allowed to control more than 15 per cent of the card-issuing market.

The CBN said the restrictions are intended to promote healthy competition, reduce systemic risks and prevent excessive concentration within the financial technology ecosystem.

To ensure compliance, regulated institutions will now be required to submit monthly market-share reports using templates prescribed by the apex bank.

The regulator warned that it would closely monitor compliance and impose supervisory sanctions on institutions that fail to adhere to the new requirements.

Industry observers believe the latest measures signal the CBN’s determination to strengthen governance standards, improve transparency and safeguard the long-term stability of Nigeria’s digital financial services sector.