The Central Bank of Nigeria (CBN) has directed banks, fintechs, and other payment service providers to disclose their ultimate beneficial owners and comply with new rules designed to restructure Nigeria’s fast-growing digital payments ecosystem.
In a circular dated June 15, 2026, signed by Dr. Rakiya Yusuf, Director of the Payments System Supervision Department, the apex bank mandated Deposit Money Banks, Microfinance Banks, Mobile Money Operators, switching companies, and other licensed firms to maintain accurate records of ownership and provide them to regulators when requested.
The directive also introduced:
Data localisation: All payment transaction data generated in Nigeria must be stored within the country by January 1, 2027.
Market share limits: Institutions with more than 25% share in consumer issuing cannot exceed 15% in merchant acquiring, and vice versa, to curb concentration risks.
Monthly reporting: Regulated entities must submit market share returns using prescribed templates.
CBN Governor Olayemi Cardoso said the measures align with anti-money laundering and counter-terrorism financing regulations, aiming to strengthen transparency, oversight, and competition in the payments industry.
The apex bank noted that while digital financial services have boosted innovation and inclusion, they have also raised concerns about ownership opacity, systemic importance, and data security.
The new framework seeks to safeguard the integrity of Nigeria’s payments system and reduce risks posed by dominant players.
Affected institutions have until December 31, 2026, to fully comply with the new requirements.
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