Stakeholders Challenge CBN’s January Deadline for Data Localisation

 Industry stakeholders have raised concerns over the Central Bank of Nigeria’s (CBN) January 1, 2027 deadline for financial institutions and payment service providers to localise payment transaction data in Nigeria.

 The CBN directive, issued in June 2026, requires payment transaction data generated in Nigeria to be stored and managed on domestic infrastructure. The policy is aimed at strengthening data sovereignty, security and regulatory oversight within the country’s expanding digital payments ecosystem.

 However, banking and fintech executives say the six-month implementation window is too short, citing the scale of data involved, technical migration challenges, infrastructure requirements and compliance costs.

 Speaking at a technology industry forum in Lagos, FCMB Chief Technology Officer Blessing Ehize called for clearer regulatory guidance on which categories of payment data must be hosted domestically and which could continue to operate through hybrid cloud arrangements.

 Hakeem Adeniji-Adele, Deputy Managing Director of eTranzact, also described the deadline as challenging, arguing that a phased implementation approach would allow institutions to manage the migration of large volumes of data without disrupting services.

 The debate comes as Nigeria’s digital payments sector continues to expand. Industry stakeholders have called for stronger collaboration between regulators and operators, as well as a clear implementation roadmap, to ensure that data localisation does not compromise the resilience and continuity of financial services.

 The January 1, 2027 deadline remains in place as banks, fintech companies and other payment operators prepare for the transition.