CBN Orders Banks, Fintechs to Disclose Owners, Tightens Digital Payments Rules

The Central Bank of Nigeria (CBN) has directed banks, fintech companies and other payment service providers operating in the country to disclose their ultimate beneficial owners as part of sweeping new reforms targeted at the digital payments ecosystem.

The directive was contained in a circular dated June 15, 2026, signed by the Director of the Payments System Supervision Department, Dr. Rakiya Yusuf, and 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 apex bank said the regulatory action became necessary due to the rapid expansion of electronic payments in Nigeria and the growing dominance of a few players in key segments of the market.

According to the CBN, the new framework is designed to enhance transparency, strengthen oversight, reduce systemic risks and promote a more competitive and resilient payments industry.

The bank explained that all affected institutions must now disclose the Ultimate Beneficial Ownership (UBO) of significant shareholders and maintain accurate, up-to-date ownership records to be made available to regulators upon request. It added that the requirement aligns with existing Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Financing regulations aimed at improving transparency within the financial system.

In addition, the CBN introduced a mandatory data localisation policy requiring all payment transaction data generated within Nigeria to be stored and processed within the country. The policy must be fully implemented by January 1, 2027.

The apex bank said the measure would strengthen regulatory oversight, improve data security and reinforce compliance with Nigeria’s data protection framework.

The circular also introduced new market structure rules aimed at curbing excessive dominance in the payments industry. Under the framework, any institution controlling more than 25 per cent market share in consumer issuing will not be allowed to hold more than 15 per cent in merchant acquiring within the same 12-month period, and vice versa.

The restrictions, the CBN said, will apply to both direct operations and related entities within the same corporate group, with the goal of reducing concentration risk and preventing any single player from exerting undue influence across the payments value chain.

To ensure compliance, the apex bank directed all regulated entities to submit monthly market share returns using approved reporting templates. It further gave operators until December 31, 2026, to fully align their operations with the new requirements.

The CBN noted that the reforms were necessary due to “significant structural developments within the Nigerian payments ecosystem,” including rapid growth in digital transactions, increased adoption of financial technology services and the emergence of dominant operators across key segments.

“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.”

The apex bank said it would closely monitor implementation and enforce compliance through supervisory measures where necessary.

By David Bolarinwa