The Central Bank of Nigeria (CBN) has issued a sweeping regulatory order requiring banks and payment firms, including Fintechs To Disclose Ownership, as part of a new framework aimed at tightening oversight, improving transparency, and reshaping how digital payments operate in Nigeria.
Key Highlights:
- Banks and fintech firms must now comply with Fintechs To Disclose Ownership rules
- Mandatory disclosure of Ultimate Beneficial Ownership (UBO) introduced
- New data localisation rule takes effect from January 1, 2027
- Limits placed on market dominance in payment systems
- Monthly reporting of market share now required by CBN
The directive was contained in a circular dated June 15, 2026, signed by Dr. Rakiya Yusuf, Director of the Payments System Supervision Department. It was addressed to Deposit Money Banks, fintech operators, mobile money providers, payment solution firms, super agents, and other licensed players in the financial ecosystem.
According to the CBN, the new framework responds to rapid expansion in digital payments and rising concentration of influence among a few dominant operators.
The apex bank said the policy is designed to strengthen transparency, reduce systemic risks, and ensure fair competition across Nigeria’s fast-growing payments industry.
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Under the new rules, all regulated institutions must fully disclose the Ultimate Beneficial Ownership (UBO) of significant shareholders and maintain updated ownership records accessible to regulators at any time.
The CBN stated that the directive aligns with existing Anti-Money Laundering (AML), Counter-Terrorism Financing (CTF), and Counter-Proliferation Financing standards, all aimed at improving financial system integrity.
In a major structural shift, the bank also introduced a data localisation requirement mandating that all payment transaction data generated in Nigeria must be stored and processed within the country by January 1, 2027.
The regulator explained that keeping data within national borders will strengthen cybersecurity, improve regulatory access, and enhance compliance with local data protection laws.
To curb market dominance, the CBN imposed new competition limits restricting any operator with more than 25 per cent share in consumer issuing from holding more than 15 per cent in merchant acquiring, and vice versa.
The rule will apply to parent companies and affiliated entities to prevent circumvention through corporate structures.
All operators are required to submit monthly market share reports using templates approved by the CBN to support continuous monitoring and enforcement.
The apex bank set December 31, 2026, as the deadline for full compliance with all ownership disclosure, competition, and data localisation requirements.
The CBN said the reforms are necessary due to the rapid evolution of Nigeria’s payments ecosystem, which has seen accelerated adoption of fintech services, digital transactions, and infrastructure-driven financial innovation.
While acknowledging the sector’s role in improving financial inclusion, the regulator warned that unchecked concentration and weak ownership transparency could pose risks to financial stability.
The bank added that it will actively monitor compliance and enforce penalties against institutions that fail to meet the new standards.
