THE Central Bank of Nigeria (CBN) has introduced new regulations requiring banks, fintech companies, and other payment service providers to disclose their ultimate beneficial owners, localise payment transaction data, and comply with fresh market share restrictions aimed at strengthening competition within the financial ecosystem.
The directives were contained in a circular dated June 15, 2026, signed by the Director of the Payments System Supervision Department, Dr. Rakiya Yusuf.
The circular was addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, switching companies, Payment Terminal Service Providers, Payment Solution Service Providers, Super Agents, and other licensed operators participating in Nigeria’s payments industry.
According to the apex bank, the measures were introduced in response to the rapid growth of electronic payments and the increasing dominance of a small number of operators across key segments of the digital payments market.
The CBN noted that while the expansion of digital financial services has enhanced innovation, efficiency, and financial inclusion, it has also raised concerns about market concentration, systemic risks, ownership transparency, operational dependence, and the handling of critical payments data.
As part of the new framework, all regulated institutions involved in digital payment operations must disclose the Ultimate Beneficial Ownership (UBO) of significant shareholders and maintain accurate records that can be made available to regulators upon request.
The central bank explained that the requirement aligns with existing Anti-Money Laundering, Counter-Terrorism Financing, and Counter-Proliferation Financing regulations and is intended to improve transparency within the financial system.
In addition, the regulator introduced a mandatory data localisation policy requiring all payment transaction data generated in Nigeria to be stored and managed within the country. Financial institutions and payment service providers have until January 1, 2027, to comply with the directive.
The CBN said the move would strengthen regulatory oversight, improve data security, and support compliance with Nigeria’s data protection laws.
To address concentration risks, the central bank also unveiled new market structure rules that limit the level of influence a single institution can hold across multiple payment segments.
Under the framework, any licensed institution controlling more than 25 per cent of the consumer issuing market over a rolling 12-month period will be restricted from holding more than 15 per cent of the merchant acquiring market during the same period.
The same limitation applies in reverse to institutions that dominate merchant acquiring activities.
The restrictions will apply not only to direct operations but also to activities conducted through related entities within the same corporate group.
According to the CBN, the measures are designed to reduce systemic vulnerabilities, prevent excessive market dominance, and encourage a more competitive environment that allows smaller operators to thrive.
To ensure effective monitoring, all regulated entities will be required to submit monthly market share reports using templates prescribed by the apex bank. Institutions have until December 31, 2026, to fully comply with the market structure requirements.
The CBN said the framework was developed after observing significant changes in Nigeria’s payments landscape, including rapid growth in electronic transactions, wider adoption of digital financial services, and the emergence of operators with substantial influence across multiple payment activities.
The regulator added that the new rules are intended to improve ownership transparency, address concentration risks, strengthen competition, and ensure that critical payment transaction data remains within Nigeria.
The latest intervention highlights the central bank’s efforts to enhance governance, strengthen oversight, and safeguard financial stability as the country’s digital payments ecosystem continues to expand.
