The Central Bank of Nigeria has issued new directives requiring all commercial banks, payment service banks, and fintech companies to fully disclose their beneficial owners and to store all payments data on local servers by 2027. The orders, detailed in circulars to financial institutions, also bring an immediate end to the processing of domestic payments offshore. According to reports, the CBN has given these institutions until the end of 2027 to complete the migration of all payments data to servers physically located within Nigeria.

The move to localise payments data is framed by the regulator as a measure to strengthen oversight, improve data sovereignty, and enhance the security of the national financial system. The CBN stated that the new policy will ensure that payments data is subject to Nigerian laws and regulations, facilitating more effective monitoring and supervision. The directive to cease offshore processing of domestic transactions takes effect immediately, compelling institutions to reroute such operations to local infrastructure.

In a parallel but separate directive, the CBN has also mandated that banks and fintechs provide comprehensive details of their beneficial owners—the natural persons who ultimately own or control a company. This measure aligns with broader international efforts to combat money laundering and illicit financial flows. The requirement for transparency extends to all entities operating within the Nigerian payments landscape, including major fintech players that have seen rapid growth in recent years.

These regulatory shifts occur within a wider African context of central banks asserting greater control over digital financial ecosystems. For instance, in Ghana, the Bank of Ghana recently ordered financial institutions to cease supporting foreign currency-denominated crypto wallets, citing concerns over currency stability and regulatory arbitrage. While the Nigerian directives do not target cryptocurrency directly, they reflect a similar trend of authorities tightening governance around digital finance and cross-border data flows.

The 2027 deadline for data localisation presents a significant operational and financial challenge for the industry. Many Nigerian fintechs and banks currently rely on global cloud service providers and international data centres to handle transaction volumes. Building or contracting equivalent local data capacity will require substantial investment. Industry analysts suggest the policy could accelerate the development of Nigeria's domestic data centre industry while potentially increasing operational costs for service providers.

Furthermore, the beneficial ownership disclosure rule introduces another layer of compliance. It demands that institutions identify individuals with significant control, regardless of complex corporate structures that may involve holding companies or foreign investors. This is seen as a step to curb the use of opaque corporate vehicles for financial crime, a concern that has been highlighted by international bodies like the Financial Action Task Force.

The CBN's actions are part of a continuing evolution of Nigeria's fintech regulatory framework, which has seen increased scrutiny following the sector's explosive growth. The directives underscore the central bank's intent to balance innovation with robust oversight, data security, and national economic interests. As the 2027 deadline approaches, the focus will shift to the implementation phase and how both traditional banks and agile fintech firms adapt their architectures and governance to meet the new requirements.