CBN sets January 2027 deadline for payment data localisation

The Central Bank of Nigeria (CBN) has directed financial institutions and participating payment service providers to store and manage relevant payment data and associated assets in Nigeria, with compliance due by January 1, 2027.

The Director of the CBN’s Payments System Supervision Department, Mrs Rakiya Yusuf, said the policy aimed to protect sensitive financial information, strengthen regulatory oversight, and improve the resilience of Nigeria’s financial system.

Yusuf spoke at the seventh edition of the CIO and C-Suite Conference and Awards Africa 2026, held at the Balmoral Convention Centre, Victoria Island, Lagos, on Tuesday.

She said data localisation had become increasingly important as digital payments, e-commerce, cloud computing and artificial intelligence continued to reshape economic activity.

“Across the world, data has become a strategic asset and a critical enabler of economic activity,” she said.

Yusuf described data localisation as a matter of trust, national sovereignty and resilience, stressing the need to protect payment information and maintain effective control over critical financial data.

“Data localisation is ultimately about trust. It is about sovereignty and resilience. Trust that Nigeria’s payment data is protected. Sovereignty over a strategic national asset,” she said.

However, she acknowledged that implementing the policy could be challenging because of unreliable electricity supply, inadequate data centre infrastructure, connectivity gaps, cybersecurity requirements and rising operational costs.

She warned that poorly designed localisation policies could also restrict innovation and weaken competitiveness, urging regulators to adopt a balanced framework that protects national interests without unnecessarily limiting technological advancement.

Also speaking at the conference, NGX Group Chief Strategy Officer Mrs Jumoke Olaniyan said effective data management and reliable digital infrastructure could boost investor confidence and make African businesses more attractive to capital providers.

Delivering the keynote address on behalf of NGX Group Chief Executive Officer Mr Temi Popoola, Olaniyan said weak information governance and unreliable systems could increase perceived business risks, prolong investor due diligence, and raise the cost of capital.

She described trust as an economic asset, noting that capital markets depend on reliable information, effective disclosures, and systems that support transactions without disruption.

According to her, companies should treat technology decisions as business strategy rather than merely operational expenditure because they affect their ability to attract funding, expand operations, and compete globally.

Citing the NGX Invest platform, she said it has facilitated more than ₦3 trillion across more than 23 transactions since its launch in 2024. She added that its application programming interface connections covered more than 100 digital distribution channels, including banks, stockbrokers and fintech companies.

Olaniyan said data localisation and data sovereignty were related but distinct, explaining that sovereignty went beyond where information was stored to include the ability to govern data, enforce protections and manage technological dependencies.

She urged technology leaders to support secure, interoperable systems that facilitate cross-border business while complying with regulatory requirements.

The conference also attracted about 160 nominations from 14 African countries for its awards, according to Deloitte Partner, Mr Olawal Noiki.

Noiki said nominees were assessed through multiple stages, including reviews of business cases, evidence of impact and the value delivered to their organisations and the wider economy.

He said technical experts and two panels of jurors reviewed submissions before selecting finalists and winners.

The Convener of CIO and C-Suite Projects Africa, Ms Abiola Laseinde, said the initiative, which began in 2020, has evolved into a continental platform for recognising technology leaders who contribute to business growth and Africa’s digital development.

She said representatives of 13 African countries attended the event, which brought together technology executives, policymakers and business leaders to discuss digital transformation under the theme, Leading the Next Africa.

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