The Central Bank of Nigeria (CBN) has directed banks, fintech companies, and other payment service providers to disclose their ultimate beneficial owners as part of sweeping new regulatory reforms targeting the country’s digital payments ecosystem.
The directive was contained in a circular dated June 15, 2026, signed by the Director of the Payments System Supervision Department, Rakiya Yusuf, and addressed to deposit money banks, microfinance banks, mobile money operators, switching companies, and other licensed payment institutions.
The apex bank said the measures were introduced in response to the rapid expansion of electronic payments in Nigeria and growing concerns over market concentration, ownership transparency, and systemic risks within the financial technology sector.
Under the new rules, all affected institutions are required to fully disclose their ultimate beneficial ownership structures and maintain up-to-date records for regulatory inspection. The requirement is also aligned with anti-money laundering and counter-terrorism financing frameworks.
In addition, the CBN ordered the localisation of all payment transaction data, mandating that data generated within Nigeria must be stored and processed within the country by January 1, 2027. The move is aimed at improving regulatory oversight, strengthening data security, and reinforcing Nigeria’s digital governance framework.
The central bank also introduced new market structure limits designed to prevent excessive dominance in the payments sector. Under the rules, institutions holding more than 25 per cent market share in consumer issuing will not be allowed to exceed 15 per cent in merchant acquiring, and vice versa.
The restrictions will apply across corporate groups and related entities, with the CBN noting that the goal is to reduce concentration risk and promote fair competition across the financial ecosystem.
Regulated institutions are required to submit monthly market share reports and fully comply with the new structure by December 31, 2026.
The CBN said the reforms reflect significant changes in the payments landscape, including increased digital adoption, innovation, and the rise of dominant players across key segments.
It added that while these developments have improved financial inclusion and efficiency, they also pose risks related to systemic dependence and reduced competition, which the new framework seeks to address.
The apex bank stated that it will closely monitor compliance and enforce sanctions where necessary to ensure stability and transparency in the payments system.
