Nigeria’s financial sector is facing mounting pressure from a January 1, 2027 deadline for local storage and management of payment data.
The Central Bank of Nigeria (CBN) requires banks, fintechs, payment service providers and other regulated institutions to keep critical payment transaction data generated in Nigeria within the country. A joint CBN-NITDA survey, however, found that only 59% of financial institutions were ready for the deadline.
The transition is proving more complex than simply moving databases to Nigerian servers. Institutions must review their technology architecture, cloud arrangements, contracts, cybersecurity systems and interconnected workloads while ensuring uninterrupted services.
The pressure is particularly significant for smaller fintechs and microfinance banks that rely heavily on foreign cloud infrastructure. The CBN has warned that deliberate non-compliance could attract sanctions.
The regulator says the localisation policy is intended to strengthen regulatory visibility, protect sensitive financial information and improve the resilience of Nigeria’s financial system.
Nairametrics
