The Central Bank of Nigeria (CBN) has issued a new directive requiring banks, fintech companies, and other licensed payment service providers to disclose their ultimate beneficial owners as part of fresh regulatory reforms targeting the country’s digital financial ecosystem.
The directive was contained in a circular dated June 15, 2026, signed by Rakiya Yusuf, the director of the payments system supervision department and addressed to deposit money banks, microfinance banks, mobile money operators, payment service providers, and other participants in the financial technology space.
According to the apex bank, the move is aimed at strengthening transparency in ownership structures as Nigeria’s digital payments sector continues to expand rapidly, with a growing number of dominant players across key segments.
The CBN explained that while innovation in digital finance has improved financial inclusion and efficiency, it has also raised concerns around market concentration, systemic risk, and lack of clarity in ownership structures.
Under the new rules, all affected institutions are required to maintain accurate and up-to-date records of their ultimate beneficial owners and submit such information to the regulator upon request.
The central bank also introduced a data localisation requirement, directing that all payment transaction data generated within Nigeria must be stored and processed within the country. Full compliance with this rule is expected by January 1, 2027.
Also, the CBN introduced new market structure limits designed to prevent excessive dominance by any single institution. Firms controlling more than 25 percent of market share in consumer issuing will not be allowed to exceed 15 percent in merchant acquiring, and vice versa.
The regulator said these measures are intended to reduce systemic risk, promote competition, and prevent any single operator from exerting undue influence across multiple segments of the payments value chain.
To ensure compliance, the CBN directed all regulated entities to submit monthly market share reports using approved templates and timelines, while giving operators until December 31, 2026, to adjust their operations to meet the new requirements.
The bank added that it will closely monitor implementation and apply supervisory sanctions where necessary, stressing that the reforms are aimed at safeguarding the stability and integrity of Nigeria’s rapidly growing digital payments system.