The Central Bank of Nigeria (CBN) has ordered banks, fintechs, and other payment service providers to disclose their ultimate beneficial owners, localise payments transaction data, and comply with new market share limits designed to curb concentration risk.
The regulatory measures were contained in a circular dated June 15, 2026, and signed by the CBN’s Director, Payments System Supervision Department, Dr. Rakiya Yusuf.
The circular represents one of the most significant interventions by the CBN in the payments industry in recent times, aimed at restructuring the country’s fast-growing digital payments ecosystem.
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, the circular comes amid rapid expansion of electronic payments and increasing dominance of a few players across critical segments of the market.
According to the CBN, while the growth of digital financial services has boosted innovation, efficiency, and financial inclusion, it has also heightened concerns over market concentration, systemic importance, operational dependence, ownership transparency, and the location of critical payments data.
The apex bank said the new framework seeks to improve transparency, strengthen oversight, and promote a more competitive and resilient payments ecosystem.
Under the framework, all Deposit Money Banks, payment service providers, and other financial institutions with digital payments operations must disclose the Ultimate Beneficial Ownership (UBO) of significant shareholders.
The CBN also directed affected institutions to maintain accurate and up-to-date records of beneficial ownership and make such information available to the regulator whenever requested.
The bank explained that the directive aligns with existing Anti-Money Laundering, Combating the Financing of Terrorism and Counter-Proliferation Financing regulations and is expected to strengthen transparency around ownership structures in the financial system.
Beyond ownership disclosure, the CBN introduced a mandatory data localisation policy requiring all payments transaction data generated within Nigeria to be stored and managed within the country.
The circular stipulated that all financial institutions and participants facilitating payments in the country must ensure full compliance with the requirement by January 1, 2027.
The move is expected to deepen regulatory oversight of payment transactions, strengthen data security, and reinforce compliance with Nigeria’s data protection framework.
The central bank also introduced market structure rules aimed at preventing excessive dominance by individual institutions across key payment segments.
Under the new framework, any licensed financial institution engaged in consumer issuing activities that controls more than 25 per cent market share in consumer issuing over a rolling 12-month period will be prohibited from holding more than 15 per cent market share in merchant acquiring during the same period.
Similarly, institutions with more than 25 per cent market share in merchant acquiring activities will not be permitted to hold more than 15 per cent market share in consumer issuing.
The restrictions will apply whether the activities are carried out directly by an institution or through related entities within the same corporate group.
The provisions are aimed at reducing concentration risks and preventing dominant players from exercising excessive influence across multiple segments of the payments value chain.
The measures introduce structural safeguards intended to foster competition, create room for smaller operators, and reduce the systemic risks associated with excessive market concentration.
To facilitate monitoring, the CBN directed all regulated entities to submit monthly market share returns based on prescribed reporting templates and timelines.
Affected institutions have until December 31, 2026, to fully align their operations with the new market structure requirements.
The apex bank said it would closely monitor implementation and enforce compliance through supervisory measures where necessary.
The latest intervention underscores the CBN’s determination to strengthen governance standards within the payments ecosystem while ensuring that the rapid growth of digital financial services does not create vulnerabilities capable of threatening financial stability.
The CBN stated:
“Observed significant structural developments within the Nigerian Payments ecosystem, characterised by rapid growth in electronic payments, increasing adoption of digital financial services, and the emergence of operators with substantial market presence across key payment activities.
“While these developments have supported innovation, efficiency, and financial inclusion, they have also raised concerns relating to market concentration, operational dependence, systemic importance, transparency of ownership structures, and the localisation of critical payment data.
“Accordingly, the CBN hereby issues this circular to improve transparency through beneficial ownership disclosure, address concentration risk, promote a fair, competitive, and resilient payments ecosystem.
“The circular further aims to safeguard the integrity of the Nigerian payments system and ensure the localisation of payments transaction data within Nigeria.”
