From hidden ownership to data sovereignty, the Central Bank of Nigeria is confronting risks lurking beneath Nigeria’s fintech boom, writes Festus Akanbi
The Central Bank of Nigeria’s (CBN) latest directive to banks, fintechs and payment service providers marks a significant shift in the regulation of Nigeria’s financial system. By requiring the disclosure of Ultimate Beneficial Owners (UBOs), the localisation of payment transaction data by January 1, 2027, and compliance with new market concentration limits, the apex bank is seeking to prevent innovation from becoming a channel for hidden ownership, weak governance, and systemic risk.
The directive comes at a critical moment. Nigeria’s payments industry has expanded rapidly, transforming electronic payments into the engine of daily commerce. NIBSS data showed that electronic payment transactions rose to N284.99 trillion in the first quarter of 2025, up from N234.49 trillion a year earlier. The CBN also reported that nearly 11 billion transactions passed through the NIBSS Instant Payments platform in 2024, up from about five billion in 2022. The system has become too large and interconnected to be governed by loose ownership disclosure and offshore data dependence.
