The Central Bank of Nigeria (CBN) has directed banks, fintech companies, and other payment service providers operating in the country to ensure that all payment transaction data generated within Nigeria is stored on local servers beginning January 1, 2027.
The directive forms part of the apex bank’s broader efforts to strengthen regulatory oversight, enhance data security, and improve monitoring of Nigeria’s rapidly expanding digital payments ecosystem.
Under the new requirement, financial institutions and payment service operators will no longer be permitted to host transaction data generated within the country on foreign servers after the implementation date. The policy is expected to promote data sovereignty, improve regulatory access to critical financial information, and support the development of Nigeria’s local data infrastructure.
The CBN noted that the measure is aimed at ensuring greater transparency and operational resilience within the financial sector, while also aligning with national objectives on digital economy growth and cybersecurity.
Industry stakeholders are expected to begin preparations ahead of the January 2027 deadline, including investments in local data centres and compliance frameworks to meet the new regulatory standards.
The directive comes as Nigeria continues to witness significant growth in electronic payments, fintech innovation, and digital banking services, making effective oversight and data protection increasingly important for financial stability and consumer confidence.
Further details on compliance requirements and implementation guidelines are expected to be released by the Central Bank in due course.
