CBN orders banks and fintechs to disclose beneficial owners, introduce data localisation, and tighten market structure rules in Nigeria’s payments sector
The Central Bank of Nigeria (CBN) has directed deposit money banks, fintech companies, and other payment service providers to disclose their ultimate beneficial owners as part of a sweeping regulatory overhaul of the country’s digital payments sector.
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The directive was contained in a circular dated June 15, 2026, signed by Dr. Rakiya Yusuf, Director of the Payments System Supervision Department at the Central Bank of Nigeria.
The circular was addressed to banks, mobile money operators, switching companies, payment terminal service providers, and other licensed participants in Nigeria’s rapidly expanding financial technology ecosystem.
The CBN said the move is aimed at strengthening transparency, improving oversight, and reducing risks linked to ownership opacity and market concentration within the payments industry.
The new framework requires all affected institutions to disclose the ultimate beneficial ownership of significant shareholders and maintain accurate, up-to-date ownership records for regulatory inspection when required.
In addition, the apex bank introduced a mandatory data localisation policy requiring all payment transaction data generated in Nigeria to be stored within the country, with full compliance expected by January 1, 2027.
The CBN also set new market structure limits designed to prevent dominance in the payments ecosystem. Institutions exceeding 25 per cent market share in one segment will be restricted from holding more than 15 per cent in another key segment.
The regulator said the measures are intended to promote competition, reduce systemic risk, and support a more balanced financial services landscape as digital payments continue to expand rapidly.
The CBN added that while innovation and financial inclusion have improved, growing concentration and operational dependence among major players require stronger safeguards to protect financial stability.
Institutions have until December 31, 2026, to fully comply with the new structural requirements, while monthly reporting obligations have also been introduced to support supervision.
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The apex bank said it will closely monitor implementation and enforce compliance where necessary, marking one of its most significant interventions in Nigeria’s payments ecosystem in recent years.
