Nigeria’s banks and fintech companies are asking the Central Bank of Nigeria for more time to meet its January 1, 2027 deadline for moving payment transaction data into the country.
The request emerged at the inaugural GrowthX by Techeconomy and TiLAwards in Lagos, where technology executives said the transition is more complicated than moving data from foreign cloud platforms to Nigerian servers. They called for clearer guidance and a phased plan.
The CBN’s June 15, 2026 circular directs financial institutions and other participants that facilitate payments in Nigeria to store and manage payment transaction data generated within the country locally. The measure is part of wider efforts to strengthen oversight, improve control over critical financial information and reduce dependence on foreign infrastructure.
For banks, the challenge goes beyond identifying a Nigerian data centre. Localisation can affect cloud architecture, backups, disaster recovery, connectivity, security and applications that support transactions. Migration must also avoid disrupting banking services.
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Why banks say the deadline is tight
Technology leaders in the financial sector say the six-month window leaves little room for institutions with complex technology environments.
FCMB Chief Technology Officer Blessing Ehize said banks need clearer explanations from the regulator on what must be hosted locally and how hybrid cloud arrangements will be treated. Financial systems often distribute workloads across databases, applications, backup environments and third-party services.
eTranzact Deputy Managing Director Hakeem Adeniji-Adele also described the timetable as challenging because of the amount of information and computing workloads involved. Rather than moving everything at the same time, he suggested separating compute and storage migration and allowing institutions to proceed in stages.
These concerns do not mean banks are unwilling to comply. BusinessDay reported in July that many established banks had already made significant progress in localising payment data, while some fintechs and other operators still had more work to do before the deadline.
The wider impact on Nigeria’s digital economy
The debate comes as Nigeria tries to build stronger domestic digital infrastructure. Moving more financial workloads into the country could increase demand for data centres, cloud services, connectivity, cybersecurity and backup capacity.
Open Access Data Centre chief executive Ayotunde Coker has argued that the policy could create investment opportunities as demand for local hosting grows. However, industry participants have also pointed to practical requirements such as dependable electricity, network redundancy, security and enough computing capacity to support critical banking workloads.
The issue is bigger than simple compliance. A successful transition could strengthen local infrastructure and give Nigerian technology providers a larger role in serving the financial sector. A rushed migration could also create operational pressure for institutions that must keep payment services available around the clock.
Legal analysis of the directive also notes that the CBN requirement sits alongside the Nigeria Data Protection Act, meaning regulated institutions must consider both localisation requirements and the rules governing personal data.
Back story: How the CBN data localisation rule started
The current discussion dates to June 15, 2026, when the CBN issued Circular PSS/DIR/PUB/CIR/001/004 covering market structure, data localisation, ultimate beneficial ownership disclosure and systemic oversight measures in Nigeria’s payments system.
The circular requires payment transaction data generated in Nigeria to be stored and managed in Nigeria, with full compliance taking effect from January 1, 2027. The directive covers banks, payment service providers, mobile money operators, switching and processing companies, payment terminal service providers, payment solution service providers, super agents and other licensed operators involved in payments.
The CBN says the reforms aim to improve the resilience and integrity of the payments ecosystem. Since the directive was announced, attention has increasingly shifted from whether data should be localised to how quickly and safely the industry can achieve it.
With January 1, 2027 approaching, banks and fintechs are pushing for engagement that can turn the policy into a workable migration roadmap. Their message is that they are preparing for localisation, but want clear technical expectations and a transition process that protects the reliability of Nigeria’s payments system.
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