The Central Bank of Nigeria (CBN) has directed banks, payment service providers (PSPs), and other financial institutions involved in payment services to store and manage payment transaction data generated within Nigeria locally.
In a circular signed by Rakiya Yusuf, Director of the Payments System Supervision Department, the apex bank said all institutions facilitating payment transactions in the country must ensure that payment transaction data generated in Nigeria are stored and managed within the country in compliance with applicable data protection and privacy laws.
The new requirement will take effect on January 1, 2027.
The CBN also directed banks, PSPs, and other financial institutions 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. Affected institutions are required to maintain accurate and up-to-date ownership records and make them available to the regulator upon request.
Additionally, the apex bank instructed regulated entities to submit monthly market share returns using prescribed templates and timelines. Institutions have until December 31, 2026, to comply with the new market structure requirements.
According to the CBN, compliance with the directives will be closely monitored, with supervisory sanctions imposed where necessary in accordance with existing laws, regulations, and guidelines.
The regulator also introduced market share limits for financial institutions operating in the card issuing and merchant acquiring segments. Under the new framework, any institution controlling more than 25 percent of the card issuing market will be restricted to a maximum of 15 percent market share in merchant acquiring services.
Similarly, financial institutions with more than 25 percent market share in merchant acquiring will be limited to 15 percent market share in the card issuing segment.
The measures are aimed at promoting fair competition, strengthening oversight, enhancing transparency in ownership structures, and supporting the development of a more resilient and efficient payments ecosystem in Nigeria.
