CBN Mandates Local Storage of Payment Data in Nigeria by 2027

The Central Bank of Nigeria (CBN) has mandated that all payment transaction data generated within Nigeria must be stored on local servers starting January 1, 2027. This directive affects banks, fintech companies, and payment service providers, requiring them to comply with Nigerian data protection laws. The CBN aims to enhance data security, improve regulatory oversight, and ensure quicker access to financial information for monitoring purposes. The move is a response to the rapid growth of digital payments and concerns over cyber risks and compliance gaps. Additionally, the CBN is introducing ownership transparency requirements to combat illicit financial activities. The policy is expected to drive investment in local data centers as institutions adjust to the new compliance requirements. Non-compliance may result in sanctions from the CBN.

Key Points: • CBN mandates local storage of payment data starting January 1, 2027. • Affected institutions include banks, fintechs, and payment service providers. • New regulations aim to enhance data security and combat illicit financial flows.