CBN mandates local data storage for all payment transactions by Jan 2027
CBN requires all banks, fintechs, mobile money operators, and payment service providers to store and process payment transaction data generated in Nigeria on local servers by January 1, 2027. The directive, issued in June 2024, aims to strengthen regulatory oversight, protect financial sovereignty, and improve system resilience. Only 59% of financial institutions show readiness according to a CBN-NITDA survey.
CBN's Payment System Supervision Director, Dr Rakiya Yusuf, emphasizes the policy is about sovereignty and regulatory visibility over critical production data. Non-compliance will attract sanctions. Industry operators warn migration is far more complex than "lift-and-shift" — it requires redesigning cloud-dependent architectures, renegotiating contracts, and ensuring local infrastructure meets security and availability standards. Smaller payment companies and microfinance banks face acute pressure.
Digital Realty Nigeria CEO Ikechukwu Nnamani argues localisation must cover both storage and processing to avoid foreign jurisdiction risks, noting local processing could also reduce latency for digital payments. Rack Centre CEO Lars Johannisson urges unprepared institutions to engage CBN and NITDA immediately for clarification and to partner with local data centre providers.
With six months remaining, affected institutions must classify workloads, assess dependencies, and execute migration plans. The coming weeks are critical for aligning infrastructure with the new requirements.