The Central Bank of Nigeria's (CBN) directive for banks and fintech companies to localise payments data by January 1, 2027, has been welcomed by industry stakeholders. Blessing Ehize, Chief Technology Officer of First City Monument Bank (FCMB), described the directive as an important step towards strengthening Nigeria's digital and financial infrastructure. Ehize emphasised the need for continued industry engagement to support effective implementation.
Ehize spoke during a panel session at the inaugural GrowthX by Techeconomy conference in Lagos, where he highlighted the importance of collaboration between regulators and industry stakeholders. He noted that additional guidance on key technical and operational considerations would help institutions align their preparations and develop structured transition plans. This, he believes, would support a smooth transition across the financial services ecosystem.
The CBN's directive requires financial institutions to domicile payments data currently hosted outside Nigeria within the country by January 2027. Ehize noted that financial institutions are currently assessing the infrastructure, technology investments, and migration strategies required to meet the policy objectives within the stipulated time frame. He advocated a phased implementation approach with clearly defined milestones to help institutions prioritise investments and manage transition activities effectively.
Hakeem Adeniji-Adele, Deputy Managing Director of eTranzact, also spoke during the panel session, emphasising the importance of a carefully coordinated implementation approach. He noted that the scale of infrastructure and data involved reinforces the need for a phased migration approach to support effective implementation. Adeniji-Adele expressed optimism that continued collaboration between regulators and industry stakeholders would support successful implementation across the ecosystem.
Panellists at the session emphasised the importance of planning, ecosystem-wide coordination, and phased execution to deliver a seamless transition that advances the objectives of data localisation while maintaining stability across Nigeria's financial services sector. They noted that a structured approach would support a seamless migration process while preserving service reliability and customer experience across the financial sector.
Ehize expressed confidence in Nigeria's capacity to achieve the localisation goals, noting that the country has the technical capability to successfully implement data localisation. He added that a phased roadmap with clearly defined milestones would help institutions prioritise investments, manage transition activities effectively, and achieve the desired outcomes.
The stakeholders' advocacy for a phased approach to payments data localisation reflects ongoing industry discussions on the operational and technical considerations of implementing the policy. The CBN's directive aims to strengthen Nigeria's digital and financial infrastructure, and industry stakeholders are committed to supporting the objectives of the policy.
Key points
- A phased implementation approach with clearly defined milestones is advocated by stakeholders to support effective implementation of the CBN's payment data localisation directive.
- Industry stakeholders emphasise the importance of collaboration between regulators and industry players to ensure a smooth transition.
- The localisation of payments data is expected to strengthen Nigeria's digital and financial infrastructure.
