The Central Bank of Nigeria (CBN) has issued a directive requiring fintech companies operating in the country to restructure their businesses or divest, while also introducing new data localisation and beneficial ownership disclosure rules for payment operators. The circular, dated June 16, 2026, instructs fintech firms to separate their core payment operations from other business lines, such as e-commerce or logistics, within six months. This move is part of a broader set of regulations aimed at increasing transparency and control within Nigeria's rapidly expanding digital payments ecosystem.
According to the CBN's new framework, payment service providers must now maintain data centres within Nigeria for the storage and processing of transaction data. The central bank also mandates the disclosure of beneficial owners for all licensed payment operators, a measure designed to curb illicit financial flows and enhance regulatory oversight. These rules apply to a wide range of entities, including mobile money operators, payment solution service providers, and switching companies.
The regulatory shift comes amid significant growth in Nigeria's digital payments sector. For instance, Monnify, a payment gateway owned by Nigerian fintech firm Moniepoint, reported processing transactions worth N25 trillion in the first quarter of 2026 alone, a figure that underscores the scale of the market the CBN is seeking to govern. This surge in transaction volume has intensified the competition for control over Nigeria's payment infrastructure, pitting traditional banks against agile fintech players.
The directive to separate payment empires from other commercial ventures marks a significant change in the CBN's approach. Many of Nigeria's leading fintech companies, such as OPay and PalmPay, have built expansive ecosystems that integrate payments with ride-hailing, food delivery, and other services. The central bank's concern appears to centre on the concentration of financial power and potential systemic risks posed by these conglomerates. Firms that fail to comply with the restructuring order face the prospect of having their operating licenses revoked.
Industry analysts suggest the new data localisation requirement is driven by both economic and security considerations. Keeping financial data within national borders gives the CBN greater supervisory access and aligns with a global trend toward data sovereignty. However, it may impose significant compliance costs on operators who currently rely on cloud infrastructure hosted outside Nigeria. The beneficial ownership disclosure rule is seen as an extension of Nigeria's commitments to international anti-money laundering standards set by bodies like the Financial Action Task Force.
The CBN's actions follow a period of rapid innovation and occasional regulatory friction in Nigeria's fintech space. The sector has been a key driver of financial inclusion, bringing banking services to millions of previously unbanked Nigerians through mobile money and agent networks. The central bank has previously intervened in the market, such as with the introduction of the eNaira, its digital currency, and restrictions on cryptocurrency transactions. The latest rules represent a further consolidation of its authority over the digital finance landscape.
Reaction from the fintech community has been mixed. Some executives privately express concern over the operational burden and potential impact on business models that rely on cross-subsidisation between payments and other services. Others acknowledge the need for clearer guardrails in a market that has grown in both value and complexity. The six-month compliance window will be a critical period for companies to negotiate the terms of their restructuring with the CBN and implement the new data governance requirements.