Twenty-two Nigerian financial institutions have yet to begin implementing the Central Bank of Nigeria’s (CBN) payment data localisation requirements, raising concerns about their readiness ahead of the January 1, 2027 deadline.
The findings come from a survey presented by the National Information Technology Development Agency (NITDA) at a joint regulatory dialogue with the CBN in Lagos.
According to the survey, 22 of the 44 financial institutions that responded to the readiness assessment had not started implementation. Meanwhile, 26 institutions, representing 59 per cent, had completed the necessary work or expected to meet the deadline.
The CBN introduced the requirement through a circular issued on June 15, 2026. It directs banks, mobile money operators, payment processors and other covered financial institutions to store and manage payment transaction data generated in Nigeria within the country.
The policy is intended to strengthen local control over financial data, improve regulatory oversight and support the development of Nigeria’s digital infrastructure.
However, the survey revealed that progress remains slow in some critical areas. Only 25 per cent of surveyed institutions had secured executive approval and budgets for implementation, while 23 per cent had contracted local service providers. Just 18 per cent had started migration or other corrective work.
Regulatory uncertainty is also contributing to the challenges. About 64 per cent of respondents requested clearer definitions of payment transaction data, while others sought guidance on what qualifies as data being stored and managed locally.
Despite these concerns, local infrastructure providers appear better positioned to support the transition. The survey found that 79 per cent of responding digital infrastructure providers had the capacity to accommodate additional financial-sector workloads.
The CBN has indicated that it will engage with institutions facing genuine implementation difficulties. However, the regulator warned that deliberate non-compliance could attract sanctions.
For Nigerian banks and fintech companies, the coming weeks will be important as they review their technology arrangements, secure local hosting services and prepare to meet the deadline.
The outcome could also create opportunities for Nigerian cloud providers and data centre operators as demand for locally hosted financial services increases.