The Central Bank of Nigeria (CBN) has ordered banks, fintechs, and other payment service providers to disclose their final beneficial owners.
This was dislcosed in a circular dated June 15, 2026, which was signed by Dr. Rakiya Yusuf, the Director of the Payments System Supervision Department at the CBN.
The directive was addressed to a wide range of financial institutions, including Deposit Money Banks, Microfinance Banks, Mobile Money Operators, switching companies, Payment Terminal Service Providers, Payment Solution Service Providers, Super Agents, and other licensed operators.
This intervention comes amid the rapid expansion of electronic payments and the increasing dominance of a few major players across critical segments of the market.
In addition to transparency requirements, the apex bank ordered financial institutions and tech firms to localize payment transaction data and comply with new market share limits designed to curb concentration risk.
This regulatory move represents one of the most significant interventions by the CBN in the payments industry in recent times, aiming to restructure the country’s fast-growing digital payments ecosystem.
According to the CBN, while the growth of digital financial services has boosted innovation, efficiency, and financial inclusion, it has also heightened concerns over market concentration, systemic importance, operational dependence, ownership transparency, and the location of critical payments data.
The new framework seeks to improve transparency, strengthen oversight, and promote a more competitive and resilient payments ecosystem.
It requires all affected institutions with digital payment operations to disclose the Ultimate Beneficial Ownership of significant shareholders, maintain accurate records, and make this information available to the regulator upon request.
The CBN explained that this directive aligns with existing regulations concerning Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Financing.
Beyond ownership disclosure, the apex bank introduced a mandatory data localization policy requiring all payment transaction data generated within Nigeria to be stored and managed inside the country.
The circular stipulated that all financial institutions and participants facilitating payments must ensure full compliance with this requirement by January 1, 2027.
This move is expected to deepen regulatory oversight of payment transactions, strengthen data security, and reinforce compliance with Nigeria’s data protection framework.