The Central Bank of Nigeria (CBN) has introduced sweeping regulatory measures aimed at strengthening transparency, competition, and data security within the country’s rapidly expanding digital payments ecosystem.
Under the new framework, banks, fintech companies, mobile money operators, payment service providers, and other licensed financial institutions are now required to disclose their Ultimate Beneficial Owners (UBOs) and maintain accurate records of ownership structures for regulatory scrutiny.
The directive, contained in a circular issued by the CBN’s Director of Payments System Supervision, Dr. Rakiya Yusuf, is part of efforts to enhance transparency and align the financial sector with existing Anti-Money Laundering and Counter-Terrorism Financing regulations.
In addition, the apex bank has mandated the localisation of all payment transaction data generated within Nigeria. Financial institutions and payment service operators are expected to store and manage such data within the country by January 1, 2027.
The CBN says the move will improve regulatory oversight, strengthen data protection, and reinforce compliance with Nigeria’s data governance framework.
The regulator has also introduced market share restrictions to address concentration risks within the payments industry. Under the new rules, institutions controlling more than 25 percent of the market in consumer issuing activities will be restricted from holding more than 15 percent market share in merchant acquiring, and vice versa.
According to the apex bank, the measures are designed to prevent excessive market dominance, encourage fair competition, and reduce systemic vulnerabilities that could threaten financial stability.
Affected institutions have until December 31, 2026, to fully comply with the new market structure requirements, while monthly market share reports will be submitted to the CBN for monitoring and enforcement purposes.
The latest intervention underscores the central bank’s commitment to building a transparent, competitive, and resilient payments ecosystem capable of supporting Nigeria’s growing digital economy.
