Banks, Fintechs Ordered to Reveal Ultimate Owners and Localize Data
Anietie Udobit, Abuja
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The Central Bank of Nigeria has unveiled sweeping new regulations that could fundamentally reshape the country’s digital financial ecosystem.
Under the directive, banks, fintech firms, mobile money operators and payment service providers must disclose their ultimate beneficial owners and ensure that payment transaction data generated within Nigeria is stored locally by January 2027.
The move is part of broader efforts to strengthen financial oversight, combat money laundering, improve cybersecurity, and increase transparency in one of Africa’s fastest-growing digital payment markets.
For years, regulators worldwide have expressed concern about hidden ownership structures that allow politically exposed persons, criminal networks, or sanctioned entities to conceal their involvement in financial institutions.
By demanding full disclosure of beneficial ownership, the CBN aims to ensure that regulators know exactly who controls licensed financial entities.
The data localization requirement is equally significant. Authorities argue that storing Nigerian payment data within the country will improve regulatory oversight, strengthen national security, and protect consumers.
However, industry stakeholders warn that compliance costs could be substantial, especially for smaller fintech operators that currently rely on international cloud infrastructure.
The policy highlights Nigeria’s determination to balance innovation with stronger regulation as digital transactions continue to dominate the economy.
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