The Central Bank of Nigeria (CBN) has introduced new regulations requiring banks, fintech companies, and other payment service providers to disclose their ultimate beneficial owners as part of efforts to strengthen transparency and oversight within the financial sector.
The directive was contained in a circular dated June 15, 2026, and signed by the Director of the Payments System Supervision Department, Dr. Rakiya Yusuf.
According to the apex bank, the move comes amid the rapid growth of Nigeria’s digital payments industry and increasing concerns over market concentration, ownership transparency, and the security of payment transaction data.
Under the new framework, all financial institutions operating within the digital payments ecosystem must disclose the identities of their Ultimate Beneficial Owners (UBOs) and maintain updated ownership records that can be made available to the CBN upon request.
The regulator said the requirement aligns with existing anti-money laundering and counter-terrorism financing regulations aimed at improving transparency within the financial system.
In addition to ownership disclosure, the CBN has directed banks, fintechs, and payment operators to ensure that all payment transaction data generated in Nigeria is stored and managed within the country.
The data localisation requirement must be fully implemented by January 1, 2027, according to the circular.
The central bank said the policy would improve regulatory oversight, strengthen data security, and support compliance with Nigeria’s data protection laws.
The CBN also introduced fresh market share restrictions aimed at reducing concentration risks in the payments sector.
Under the new rules, institutions controlling more than 25 percent of the consumer issuing market will not be allowed to hold more than 15 percent of the merchant acquiring market, and vice versa.
The restrictions will also apply to affiliated entities operating within the same corporate group.
According to the apex bank, the measures are designed to promote healthy competition, create opportunities for smaller operators, and prevent excessive dominance by a few major players.
To ensure compliance, affected institutions will be required to submit monthly market share reports to the regulator, while full compliance with the new market structure rules must be achieved by December 31, 2026.
The CBN said it would closely monitor implementation and take supervisory action against any institution that fails to comply with the new requirements.
Source: Central Bank of Nigeria (CBN) Circular, June 15, 2026.
