The Central Bank of Nigeria (CBN) has ordered banks, fintechs, and other payment service providers to disclose their ultimate beneficial owners. The regulatory measures were contained in a circular dated June 15, 2026, and signed by CBN’s Director, Payments System Supervision Department, Dr.
Rakiya Yusuf. Addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, switching companies, Payment Terminal Service Providers, Payment Solution Service Providers, Super Agents, and other licensed operators, the circular comes amid the rapid expansion of electronic payments and the increasing dominance of a few players across critical segments of the market.
The apex bank also ordered the financial institutions and tech firms to localise payment transaction data and comply with new market share limits designed to curb concentration risk. The regulatory intervention represents one of the most significant interventions by the CBN in the payments industry in recent times, aiming at restructuring the country’s fast-growing digital payments ecosystem.
According to CBN, while the growth of digital financial services has boosted innovation, efficiency, and financial inclusion, it has also heightened concerns over market concentration, systemic importance, operational dependence, ownership transparency, and location of critical payments data.
The apex banking regulator said the new framework sought to improve transparency, strengthen oversight, and promote a more competitive and resilient payments ecosystem. The new framework requires all DMBs, payment service providers, and other financial institutions with digital payment operations to disclose the Ultimate Beneficial Ownership (UBO) of significant shareholders.
CBN also directed affected institutions to maintain accurate and up-to-date records of beneficial ownership and make such information available to the regulator whenever requested. The bank explained that the directive aligned with existing Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Financing regulations and was expected to strengthen transparency around ownership structures in the financial system.
Beyond ownership disclosure, 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. The circular stipulated that all financial institutions and participants facilitating payments in the country must ensure full compliance with the requirement by January 1, 2027.