CBN Unveils Fresh Rules For Card Issuers And Payment Operators In Major Overhaul

The Central Bank of Nigeria (CBN) has instructed banks, fintech firms, and other payment operators to ensure that all transaction data generated within the country is stored and processed locally in Nigeria.....KINDLY READ THE FULL STORY HERE▶

The apex bank also announced a series of new regulatory measures aimed at improving transparency, limiting market dominance, and strengthening oversight across the payments ecosystem.

The directive was outlined in a circular dated June 15, 2026, titled “Introduction of Market Structure Requirements, Data Localisation, Ultimate Beneficial Ownership Disclosure, and Systemic Oversight Measures in the Nigerian Payments System.”

In the document, the CBN stated that all financial institutions and payment service providers involved in transactions within Nigeria must comply with the new data localisation policy.

It explained that the requirement aligns with existing data protection regulations in the country, adding that all payment transaction data generated locally must be stored and managed within Nigeria.

The circular further stated that full compliance with the data localisation rule will take effect from January 1, 2027.

In addition, the CBN directed banks, fintech companies, and other digital payment operators to disclose the ultimate beneficial owners of significant shareholders, as part of efforts to enhance transparency and strengthen anti-money laundering and counter-terrorism financing frameworks.

The regulator also instructed affected institutions to maintain accurate and continuously updated records of their beneficial owners, making them available to the CBN upon request.

According to the apex bank, the Nigerian payments sector has experienced rapid expansion driven by increased adoption of digital financial services and the emergence of major industry players.

However, it noted that this growth has also raised concerns around market concentration, ownership transparency, operational risks, and the localisation of critical financial data.

To address these challenges, the CBN introduced new market structure rules for card issuers and merchant acquirers.

Under the framework, any financial institution with more than 25 per cent market share in card issuing will not be permitted to exceed 15 per cent market share in merchant acquiring, and vice versa.

The CBN also mandated monthly reporting of market share data by all regulated entities to enhance monitoring and risk assessment in the sector.

It directed institutions to fully comply with the new market structure requirements by December 31, 2026.

The new regulations are expected to significantly reshape operations within Nigeria’s fast-growing digital payments industry, affecting banks, fintech companies, and other payment service providers.