The Central Bank of Nigeria, CBN, has issued a directive requiring all banks, fintech companies, and payment service providers to store payment transaction data generated within Nigeria on local servers starting January 1, 2027. The move is part of new regulatory measures aimed at tightening oversight of the country’s fast-growing digital payments ecosystem.
According to the CBN, the policy targets data sovereignty, cybersecurity, and regulatory access. With Nigeria’s digital transactions now running into trillions of naira annually, the apex bank says keeping data within national borders will improve monitoring, reduce fraud, and give regulators faster access during investigations. The directive covers transaction logs, customer details, and metadata from transfers, POS, mobile money, and online payments.
The CBN said the 2-year runway to January 2027 gives operators time to build, migrate, or lease compliant infrastructure in Nigeria. Fintechs and international payment firms without local data centers will need to partner with licensed Nigerian cloud providers or set up their own. The bank warned that non-compliance after the deadline would attract sanctions, including fines and possible restrictions on operations.
Industry players have mixed reactions. Local data center operators are calling it a win for Nigeria’s tech infrastructure and job creation. Fintech founders say the intent is right, but costs and technical migration could strain smaller startups. They’re urging the CBN to release clear technical standards and offer incentives to ease the transition, similar to models used in India and South Africa.
For consumers, the CBN insists the change will strengthen data protection and privacy. Local storage means Nigerian authorities can respond faster to fraud, disputes, and cyber threats without relying on foreign jurisdictions. The bank also said the rule aligns with the Nigeria Data Protection Act and global best practices where countries keep critical financial data within their borders.
The directive marks a new phase for Nigeria’s digital economy. As cashless payments, instant transfers, and mobile wallets dominate, the CBN is essentially saying: innovation must grow, but control and security must stay home. From Jan 1, 2027, “Made in Nigeria” will apply not just to products, but to the data powering every tap, swipe, and transfer.