Banks, Fintechs Seek More Time to Meet CBN Data Localisation Deadline
Banks, Fintechs Seek More Time to Meet CBN Data Localisation Deadline
Banks, fintech companies and other payment-industry operators in Nigeria are seeking greater regulatory clarity and more time to comply with the Central Bank of Nigeria’s data localisation requirement, saying the January 1, 2027 deadline could make the migration of payment data from overseas cloud systems challenging.
The concerns were raised at the inaugural GrowthX by Techeconomy and Technology Innovation and Leadership Awards (TiLAwards) held in Lagos on September 24, where industry stakeholders discussed the impact of the CBN’s new requirements on Nigeria’s digital payments ecosystem.
The CBN issued the data localisation directive on June 15, 2026, requiring payment transaction data generated within Nigeria to be stored and managed within the country in accordance with applicable data protection laws. The requirement applies to banks, mobile money operators, payment service providers, switching and processing companies and other licensed participants in the payments ecosystem.
Industry executives argued that moving large volumes of financial data and associated technology infrastructure from foreign cloud environments to local facilities requires careful planning because of operational, cybersecurity and infrastructure considerations.
FCMB Chief Technology Officer, Blessing Ehize, also raised concerns about the level of regulatory clarity available to institutions, particularly regarding which data must be hosted locally and how the requirement would apply to hybrid-cloud arrangements.
Stakeholders consequently called for stronger regulator-industry engagement and a phased implementation approach to allow affected institutions to meet the requirement without creating avoidable operational or security risks.
The CBN’s January 1, 2027 compliance date remains in place, making the issue increasingly urgent for financial institutions and payment operators still undertaking localisation work.
