The Central Bank of Nigeria has issued a directive requiring fintech companies to separate their core payment operations from other business lines, giving them a six-month deadline to either spin off or divest from non-payment activities. The order, issued on June 16, 2026, represents a significant shift in the regulatory approach to Nigeria's rapidly evolving digital finance sector. Companies operating within the country must now choose between focusing exclusively on payments or restructuring to isolate those services into distinct legal entities.

This move is part of a broader regulatory agenda aimed at strengthening oversight and mitigating systemic risk within the financial system. By forcing a separation, the CBN seeks to create clearer lines of accountability and prevent potential contagion between payment services and other, often more speculative, business ventures. The directive follows a period of rapid expansion for many Nigerian fintechs, which have diversified into areas such as lending, investment, and commerce alongside their core payment processing functions.

According to the directive, companies that fail to comply by the end of the six-month period risk losing their payment processing licenses. The CBN has stated that the separation is necessary to ensure the stability and integrity of the national payment system, which has grown in importance as digital transactions become more prevalent. This action aligns with the central bank's previously stated ambition to position Nigeria as a regional payments hub within Africa.

Separately, the CBN is enforcing a data localisation policy that requires all financial institutions, including banks and fintechs, to repatriate their data processing and storage to Nigeria by 2027. Businessday NG reports that over 90 percent of Nigerian banks and fintechs currently rely on foreign cloud services and will need to transition their operations to comply. This policy also ends offshore payment processing, mandating that all transaction processing occur within Nigerian borders.

The data localisation deadline, set for 2027, presents a parallel challenge for the industry, compelling a technological migration alongside the corporate restructuring now required. Analysts suggest the combined effect of these policies will increase operational costs in the short term but may foster greater local technology development and data security in the long run. The central bank argues that keeping financial data within Nigeria enhances regulatory oversight and protects against external shocks.

These regulatory developments occur against a backdrop of similar actions by other African central banks. For instance, the Bank of Ghana recently ordered financial institutions to cease supporting foreign currency-denominated cryptocurrency wallets, citing concerns over currency stability and illicit financial flows. While the Nigerian directive focuses on corporate structure rather than specific asset classes, it reflects a continent-wide trend of regulators asserting greater control over the digital finance ecosystem.

The CBN's vision, as outlined in other reports, extends beyond financial inclusion to positioning Nigeria as Africa's leading payments gateway. The separation of payment empires is viewed by some observers as a step towards creating specialized, robust payment infrastructure that can compete regionally. The coming months will test the adaptability of Nigeria's fintech sector as companies navigate the dual demands of corporate unbundling and data repatriation.