CBN Mandates Banks, Fintechs To Localize Payment Data Within Six Months

The Central Bank of Nigeria (CBN) has issued a six-month ultimatum directing all commercial banks and fintech companies to domesticate their payment processing data within the country. The directive aims to tighten regulatory oversight, enhance national data security, and ensure strict compliance within Nigeria’s rapidly growing financial ecosystem.

Currently, several financial institutions host critical customer and transaction data on foreign cloud servers. Under the new policy, all point-of-sale (PoS), web, and mobile transaction data must be stored and processed within local data centers.

Industry analysts indicate this shift will heavily impact fintech operations. Companies must now restructure their data architecture and invest significantly in local cloud infrastructure or partner with domestic data center providers. While the mandate raises immediate operational costs for startups, the apex bank maintains that keeping financial data within Nigerian borders is non-negotiable for safeguarding sovereignty and preventing capital flight.

Fintechs failing to comply within the 180-day window face severe regulatory sanctions, including fines or license suspension. The move marks a decisive step by the CBN to secure the nation’s digital economy against external vulnerabilities.