CBN DIRECTS BANKS TO LOCALISE PAYMENT DATA IN NEW FINANCIAL REFORM PUSH

The Central Bank of Nigeria (CBN) has directed commercial banks to localise payment data as part of ongoing reforms aimed at strengthening financial system security and improving data sovereignty.

According to the directive, banks are expected to ensure that sensitive financial transaction data involving Nigerian customers is stored and managed within the country, in line with regulatory standards.

The CBN said the move is designed to enhance oversight of payment systems, reduce exposure to external data risks, and improve the resilience of the financial sector.

Officials noted that the policy will also support faster regulatory response times and strengthen the integrity of Nigeria’s growing digital payment ecosystem.

Industry stakeholders say the directive may require significant adjustments in banking infrastructure, particularly in data hosting, cloud services, and cross-border payment operations.

However, regulators maintain that the long-term benefits include improved cybersecurity, better compliance monitoring, and increased confidence in the financial system.

The directive is part of broader efforts by the apex bank to modernize Nigeria’s financial architecture and align it with global best practices while safeguarding national economic data.

Banks are expected to begin implementation in phases, with further guidelines anticipated from the CBN in the coming weeks.