Regulatory Dialogue Addresses Industry Concerns
The Central Bank of Nigeria (CBN) and the National Information Technology Development Agency (NITDA) held an Executive Regulatory Dialogue in Lekki, Lagos, on Wednesday to address industry concerns regarding the January 1, 2027 deadline for financial institutions to store critical payment data within the country.
During the event, which brought together banks, fintech companies, data centre operators, infrastructure providers, system integrators, and investors, both agencies assured participants that sanctions would not be the primary method for enforcing compliance. However, officials warned that deliberate breaches of the regulations would not be tolerated.
The dialogue was organized to clarify regulatory requirements following the apex bank’s circular on data localization. Dr. Rakiya Yusuf, CBN Director of Payment Systems Supervision Department, stated that the meeting was a response to requests for clarification from industry players.
Survey Results and Compliance Status
A survey conducted ahead of the dialogue revealed that more than half of financial institutions were prepared to meet the January 1, 2027 deadline. The remaining institutions required further guidance to complete their migration processes.
Dr. Yusuf emphasized that data localization was tied to financial system stability, which falls under the CBN’s mandate. She cited sovereignty, clarity, and visibility over production data as key drivers for the policy.
The CBN Director noted that regulators were working with institutions to achieve compliance. Penalties would be considered only in cases where there was a deliberate attempt to disregard the rules.
Dr. Yusuf also highlighted that the CBN’s Payment System Supervision Department, established in 2025, had strengthened its oversight capacity with trained and equipped examiners. She added that most of the CBN’s own data was already stored within Nigeria, with ongoing efforts to localize remaining secondary data held abroad.
Stability and Cybersecurity Responsibilities
Lamido Abubakar Yuguda, CBN Deputy Governor for Financial System Stability, described data as a critical national asset, asserting that the resilience of the financial system depends heavily on the strength of its digital infrastructure. He outlined that regulated institutions are expected to store and manage critical payment transaction data within Nigeria by January 1, 2027, a move designed to protect sensitive information and improve regulators’ access to records.
Yuguda cautioned that keeping data within the country does not automatically guarantee its safety. He urged institutions to maintain robust cybersecurity systems, business continuity plans, and disaster recovery arrangements to ensure data integrity.
Emphasizing accountability, Yuguda stressed that the responsibility for managing technology-related risks remains with the regulated institution itself. Banks cannot transfer this responsibility to cloud service providers, regardless of where the data is hosted or processed.
National Sovereign Cloud and Future Outlook
The CBN stated it was still analyzing feedback from the industry regarding the implementation timeline and would consider requests for adjustments on their merits. This approach aims to balance regulatory enforcement with practical industry constraints.
On the broader policy framework, Yuguda stressed that the National Sovereign Cloud Initiative (NSCI) should not restrict innovation or isolate Nigeria from global technological developments. Instead, the initiative is designed to provide security, resilience, and regulatory certainty to attract investment into the local digital ecosystem.
NITDA Director-General Dr. Kashifu Inuwa also addressed the gathering, describing data localization as an issue of national importance, though specific details regarding his full statement were not fully elaborated in the immediate report.