The Central Bank of Nigeria (CBN) has introduced new payment regulations that will take effect from January 1, 2027, requiring banks, fintech companies, mobile money operators and other payment service providers to store all payment transaction data generated within Nigeria on local servers.
What is the CBN New Payment Regulations 2027?
In simple terms, the CBN New Payment Regulations 2027 mean that banks, fintech apps like Opay, PalmPay, Moniepoint and other payment companies must keep Nigerians’ payment records inside Nigeria instead of storing them on foreign servers. The CBN also wants these companies to reveal who truly owns or controls them and is introducing rules to prevent any single company from becoming too powerful in the payment industry.
According to the CBN, these changes are meant to make online transactions safer, improve transparency, protect Nigerians’ financial data, and give regulators easier access to payment information when necessary. For everyday Nigerians, nothing will change in how they send or receive money, but the new rules are expected to strengthen the security and reliability of digital payments across the country.
The directive, which forms part of the CBN New Payment Regulations 2027, is aimed at strengthening oversight of Nigeria’s rapidly expanding digital payments sector while improving transparency, competition and data security across the financial ecosystem.
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Under the new framework, all institutions involved in facilitating payments in Nigeria must ensure that payment transaction data generated within the country is stored and managed within Nigerian territory in compliance with existing data protection laws.
The apex bank said the decision became necessary following the significant growth recorded in electronic payments and digital financial services over the past few years. According to the regulator, while the growth has improved innovation and financial inclusion, it has also raised concerns about ownership transparency, market concentration and the storage of critical payment data outside the country.
One of the major highlights of the CBN New Payment Regulations 2027 is the mandatory localisation of payment data. The new rule means that banks, fintech firms, switching companies, payment terminal service providers, payment solution service providers, super agents and mobile money operators must maintain payment transaction records within Nigeria.
Industry analysts believe the move will improve regulatory access to transaction records, strengthen data sovereignty and reduce dependence on foreign infrastructure for critical financial operations.
In addition to data localisation, the CBN has directed payment operators and financial institutions to maintain accurate records of their ultimate beneficial owners. Institutions will be required to disclose the identities of significant shareholders and provide such information whenever requested by the regulator.
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The central bank explained that the ownership disclosure requirement is designed to support anti-money laundering efforts and improve transparency within Nigeria’s financial system.
The CBN New Payment Regulations 2027 also introduce new competition measures aimed at preventing excessive dominance by a few players in the payments industry.
According to the new rules, any institution controlling more than 25 percent of the card issuing market within a rolling 12-month period will not be allowed to control more than 15 percent of the merchant acquiring market during the same period.
Likewise, operators with more than 25 percent market share in merchant acquiring services will be restricted to a maximum of 15 percent market share in card issuing activities.
The regulator believes the restrictions will encourage fair competition and create a more balanced payments ecosystem that benefits consumers, merchants and businesses.
To ensure compliance, all regulated entities will now be required to submit monthly market share reports to the Central Bank using prescribed reporting templates and timelines.
The CBN has given affected institutions until December 31, 2026, to align their operations with the new requirements before full implementation begins on January 1, 2027.
Financial experts say the CBN New Payment Regulations 2027 could have a significant impact on banks and fintech companies operating in Nigeria, particularly those that currently rely on foreign cloud infrastructure or hold dominant positions in multiple segments of the payment market.
For ordinary Nigerians, the regulations are expected to enhance the security of payment transactions, improve accountability among financial service providers and strengthen confidence in the country’s growing cashless economy.
The CBN warned that it would closely monitor compliance with the new framework and impose appropriate sanctions on institutions that fail to meet the requirements before the implementation deadline.
With electronic transactions continuing to reach record levels in Nigeria, the CBN New Payment Regulations 2027 are expected to play a major role in shaping the future of digital payments, fintech operations and financial services across the country.