CBN's Policy and Fintech Challeng
The Central Bank of Nigeria has issued a new directive requiring financial institutions to localize payment data by 2027. This policy aims to treat payment data as a strategic national asset, though it creates significant compliance challenges for fintech firms.
Why it matters
The policy marks a shift toward financial sovereignty and increased regulatory oversight of the fintech sector in Africa's largest economy.
Data localisation is one of those rare policies that almost everyone agrees with in principle and argues about in practice. On June 15, 2026, the Central Bank of Nigeria issued circular PSS/DIR/PUB/CIR/001/004, signed by the Director of the Payments System Supervision Department, Dr Rakiya Yusuf, directing financial institutions to localise payment data. The circular signals a new posture of systemic oversight, under which the largest fintechs would be supervised as critical financial infrastructure rather than as startups. And it mandates data localisation, which has attracted the most attention, because it is by far the most operationally demanding. It requires that all payment transaction data generated in Nigeria be “stored and managed within Nigeria” by January 1, 2027.
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