The Central Bank of Nigeria (CBN) has directed banks, fintech firms, mobile money operators and other payment service providers to store all payment transaction data generated within Nigeria on local servers, with full compliance expected by January 1, 2027.
In a circular signed by the Director of Payments System Supervision, Rakiya Yusuf, the apex bank said the measure is aimed at strengthening oversight, improving transparency, reducing operational risks and ensuring compliance with Nigeria’s data protection laws. The directive comes amid rapid growth in electronic payments and digital financial services across the country.
The CBN also introduced new measures to improve transparency in the financial sector, including mandatory disclosure of Ultimate Beneficial Ownership (UBO) by regulated institutions. Financial service providers are required to maintain accurate ownership records and make them available to regulators when requested.
To curb market concentration, the apex bank announced that any institution controlling more than 25 per cent of the card issuing market within a 12-month period will be restricted from holding more than 15 per cent of the merchant acquiring market during the same period.
At the same event in Abuja, CBN Governor Olayemi Cardoso unveiled the Nigerian Overnight Financing Rate (NOFR), a new transaction-based benchmark designed to strengthen monetary policy transmission, improve transparency in loan pricing and deepen Nigeria’s financial markets.
Cardoso said the benchmark would help narrow the gap between the Monetary Policy Rate set by the CBN and actual lending rates charged by banks. He explained that NOFR, developed in collaboration with the Financial Markets Dealers Association and supported by the European Bank for Reconstruction and Development, reflects the true cost of overnight funding based on real market transactions.
According to the governor, the reform aligns Nigeria with global best practices, enhances market integrity, supports better liquidity management, improves investor confidence and lays the foundation for more sophisticated financial products. He added that stronger benchmark rates would ultimately make borrowing costs more transparent while improving the effectiveness of monetary policy across the economy.
