CBN Orders Banks, Fintechs to Reveal Beneficial Owners, Localise Data

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 new measures aimed at strengthening transparency and competition in Nigeria’s digital payments sector.

The directive was contained in a circular dated June 15, 2026, signed by the Director of the Payments System Supervision Department, Dr. Rakiya Yusuf.

The new rules apply to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Payment Service Providers, Super Agents, switching companies, and other licensed operators.

According to the CBN, the rapid growth of electronic payments and digital financial services has improved financial inclusion and innovation but has also raised concerns about market dominance, ownership transparency, operational dependence, and data security.

Under the new framework, affected institutions must disclose the Ultimate Beneficial Ownership (UBO) of significant shareholders, maintain accurate ownership records, and make such information available to the regulator when requested. The move aligns with existing anti-money laundering and counter-terrorism financing regulations.

The apex bank also introduced a mandatory data localisation policy, requiring all payment transaction data generated within Nigeria to be stored and managed within the country. Financial institutions have until January 1, 2027, to comply.

To reduce concentration risks in the payments industry, the CBN imposed new market share limits. Institutions controlling more than 25 per cent of the consumer issuing market will not be allowed to hold more than 15 per cent of the merchant acquiring market, and vice versa.

The restrictions will apply to activities carried out directly or through related entities within the same corporate group.

The CBN said the measures are designed to promote a fair, competitive, and resilient payments ecosystem, create opportunities for smaller operators, and safeguard financial stability.

All regulated entities are expected to submit monthly market share reports, while operators have until December 31, 2026, to align with the new market structure requirements.

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