CBN Tightens Oversight, Orders Banks, Fintechs To Reveal Beneficial Owners, Localise Data By 2027

June 17, () — The Central Bank of Nigeria (CBN) has unveiled sweeping regulatory measures requiring banks, fintechs and other payment service providers to disclose their ultimate beneficial owners, localise payments transaction data, and comply with new market share limits to curb concentration risks within the financial system.

The directives, contained in a circular dated June 15, 2026 and signed by the Director of the Payments System Supervision Department, Dr Rakiya Yusuf, represent one of the most significant regulatory interventions in Nigeria’s rapidly expanding digital payments industry.

Addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, switching companies, Payment Terminal Service Providers, Payment Solution Service Providers, Super Agents and other licensed operators, the framework seeks to enhance transparency, strengthen regulatory oversight and promote a more competitive payments landscape.

Under the new rules, all financial institutions engaged in digital payment operations must disclose the Ultimate Beneficial Ownership (UBO) of significant shareholders, maintain updated ownership records and make such information available to the regulator upon request. The CBN said the requirement aligns with existing anti-money laundering and counter-terrorism financing regulations and is intended to improve transparency in ownership structures across the financial sector.

The apex bank also introduced a mandatory data localisation policy, directing that all payments transaction data generated within Nigeria must be stored and managed domestically by January 1, 2027. The measure is expected to enhance data security, strengthen regulatory oversight and support compliance with Nigeria’s data protection framework.

In addition, the CBN imposed market structure safeguards to prevent excessive dominance by individual operators. Institutions controlling more than 25 percent market share in consumer issuing or merchant acquiring will face restrictions on participation in the other segment. The central bank said the measures are designed to reduce systemic risks, foster competition and ensure a resilient payments ecosystem.