Nigeria central bank orders payment data localization caps

The Central Bank of Nigeria has mandated the domestic storage of all payment transaction data and introduced new rules to limit market dominance in the digital payments ecosystem. The directives, detailed in a circular issued on Monday, June 15, 2026, require financial institutions and payment operators to comply with data localization and market share caps by specific deadlines in late 2026 and early 2027.

The new framework includes a requirement for all payment transaction data generated within Nigeria to be stored and managed on local servers, in compliance with the country's data protection laws. The CBN set a deadline of January 1, 2027, for full compliance with this data localization rule, a measure the regulator said is intended to enhance oversight and data sovereignty.

To address growing concerns over market concentration, the CBN established limits on how much market share a single institution can hold across different payment activities. Under the new rule, any licensed financial institution that controls more than 25% of the card-issuing market in a rolling 12-month period will be restricted to a maximum of 15% of the merchant-acquiring market during the same period....