Only 59% of Nigerian Banks, Fintechs Say They Can Meet CBN’s January 2027 Data Deadline

A new survey by the National Information Technology Development Agency (NITDA) has raised questions about the readiness of Nigerian banks, fintech companies and other financial institutions to comply with a new Central Bank of Nigeria (CBN) rule requiring payment transaction data generated in the country to be stored locally. Read origimal

The survey found that just 59% of the 44 financial institutions that answered the readiness question had completed, or expected to complete, the necessary preparations before the January 1, 2027 deadline.

With less than three months remaining before the deadline, the findings point to outstanding work involving system migration, budget approvals and contractual arrangements, even as most surveyed digital infrastructure providers say they can accommodate additional demand.

The NITDA survey showed that 26 of the 44 financial institutions that responded to the readiness question had either completed implementation or believed they could finish on time.

However, 15 institutions said completing the process before the deadline was unlikely or very unlikely, while three were uncertain about their readiness.

More concerning, 22 of the 44 institutions had not started implementation when the survey was conducted.

According to Dr Muhammad Lawal, Special Assistant on Policy to the Director-General of NITDA, the outstanding tasks include securing budgets, negotiating contracts and migrating systems to local infrastructure.

Lawal disclosed the findings during an Executive Regulatory Dialogue on the implementation of the National Sovereign Cloud Initiative and data localisation, organised jointly by NITDA and the CBN.

He explained that the survey results indicated that the challenge was not simply the availability of local data centres but also the practical steps required to move financial institutions’ systems and services.

The survey was conducted between October 13 and October 27, 2026. It received responses from 47 financial institutions and 42 digital infrastructure providers, although the number of responses differed across individual questions.

NITDA said the findings were self-reported, anonymised and aggregated. They were not a formal assessment of regulatory compliance.

Despite the implementation gaps among financial institutions, 79% of the digital infrastructure providers surveyed said they were ready to accommodate additional workloads from the financial sector.

The finding suggests that local hosting capacity may be available, but some banks and fintech companies still need to complete the financial, contractual and technical arrangements required to move their systems.

The initiative is designed to increase Nigeria’s control over critical digital infrastructure, strengthen data security and expand the country’s capacity to host essential services within its borders.

NITDA Director-General Kashifu Inuwa said Nigerian companies spend more than $850 million annually on cloud services.

He argued that developing domestic capacity could create employment opportunities, retain more economic value within Nigeria and reduce the country’s exposure to disruptions affecting infrastructure outside its control.

Inuwa added that the Nigerian Sovereign Cloud Initiative aligns with the Federal Government’s Nigeria First policy, which promotes local capacity development and value creation without cutting the country off from global technology.

He also cited the submarine cable disruptions of 2024 as an example of the risks associated with dependence on digital infrastructure beyond Nigeria’s control.

In her keynote address, CBN Deputy Governor for Financial System Stability, Dr Rakiya Yusuf, reaffirmed that financial institutions must ensure critical payment transaction data is stored and managed within Nigeria in line with applicable regulatory requirements.

The January 1, 2027 deadline is intended to improve regulatory oversight, strengthen the resilience of the financial system and safeguard sensitive financial information.

However, Yusuf cautioned that storing data locally would not automatically make financial institutions secure.

She said banks and other payment service providers must also maintain strong cybersecurity systems, business continuity arrangements, disaster recovery plans and effective risk-management procedures.

Financial institutions, she added, would remain accountable for risks arising from their relationships with cloud operators and other third-party technology providers.

The CBN also called for closer cooperation among regulators, financial institutions and technology companies to address implementation difficulties without undermining innovation or the competitiveness of Nigeria’s financial sector.

The data localisation requirement covers banks, fintech companies, mobile money operators and other payment service providers handling transactions in Nigeria.

Under the directive, payment transaction data generated within the country must be stored and managed locally in accordance with applicable Nigerian data protection laws and regulations.

The policy forms part of a wider regulatory effort to improve transparency, strengthen oversight and reduce concentration risks in Nigeria’s expanding digital payments industry.

For institutions that have yet to begin implementation, the survey highlights the need to address outstanding preparations before the deadline takes effect.

It also places greater importance on coordination between financial institutions, local infrastructure providers and regulators as the country works to expand domestic cloud capacity.

Whether the remaining institutions can complete the transition on time will depend on how quickly they resolve their outstanding budgetary, contractual and technical requirements.

Our website uses cookies to improve your experience. Learn more

Please turn off the ad blocker. This is only way that we can earn some penny. Please support us by trun off the ad blocker.Thank you!!