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The National Information Technology Development Agency (NITDA) has pledged to support banks, fintech companies and payment service providers in meeting Nigeria’s data localisation requirements as the Central Bank of Nigeria’s (CBN) January 1, 2027 implementation deadline approaches.
NITDA Director-General Kashifu Inuwa Abdullahi gave the assurance at the Executive Regulatory Dialogue on National Sovereign Cloud Initiative (NSCI) Implementation and Data Localisation, jointly organised by NITDA and the CBN in Lagos. The meeting brought together regulators, financial institutions, fintech operators and technology service providers to assess compliance readiness, domestic data centre capacity and gaps requiring urgent attention.
CBN data localisation deadline raises compliance priorities
The CBN issued a circular on June 15, 2026, titled Introduction of Market Structure Requirements, Data Localisation, Ultimate Beneficial Ownership Disclosure, and Systemic Oversight Measures in the Nigeria Payments System.
The directive introduces measures covering market concentration, systemic risk, data governance and ownership transparency. It also requires banks, fintech companies and payment service providers to store and manage critical payment transaction data locally in Nigeria by January 1, 2027.
With the deadline approaching, a survey of 44 financial institutions revealed varying levels of preparedness. Although 26 institutions, representing 59 per cent of respondents, had completed the required actions or expected to do so before the deadline, 15 said they were unlikely or very unlikely to finish on time. Three institutions were unable to assess their readiness.
The survey presentation also highlighted that 22 of the 44 institutions had not started implementing the requirements, underscoring the gap between identifying compliance obligations and taking the necessary operational steps.
Funding and migration remain major compliance gaps
The survey indicated that financial institutions had made greater progress in identifying the data and systems covered by the CBN requirements than in securing funding, engaging local technology providers or migrating systems.
About 70 per cent of respondents had identified the data or systems within the scope of the directive, while 52 per cent had mapped their hosting and administration arrangements.
However, only 25 per cent had obtained board or executive approval and secured a budget. Just 23 per cent had contracted local providers, and 18 per cent had begun migration or remediation activities.
These findings point to the practical challenges institutions must address as they work towards compliance. Identifying affected systems is an important first step, but implementation also requires investment decisions, appropriate hosting arrangements and coordinated migration plans.
NITDA backs domestic cloud capacity under the NSCI
Abdullahi said the dialogue was designed to reassure operators that Nigeria’s technology ecosystem has the capacity to support compliance with the CBN’s directive.
He explained that NITDA and the CBN were collaborating to position the financial sector as the first to comply with the Federal Government’s National Sovereign Cloud Initiative.
The NSCI is a strategic government programme coordinated by NITDA under the supervision of the Federal Ministry of Communications, Innovation and Digital Economy. It aims to establish a secure, resilient and competitive cloud ecosystem governed nationally.
According to Abdullahi, NITDA will work with global technology providers and major cloud service providers, commonly known as hyperscalers, to develop the infrastructure required to support the transition. He also said an assurance framework was in place to help ensure that implementation meets the required standards.
NITDA considers international certifications and national standards
Abdullahi said NITDA would build on existing international standards rather than introduce an entirely new certification framework for the initiative.
The agency intends to adopt recognised international certifications while ensuring that they align with Nigeria’s national sovereign architecture and requirements.
He added that NITDA was also exploring the development of national certifications. However, this would not necessarily mean that providers already holding international certifications would be required to obtain an additional national certification.
Abdullahi said the approach was intended to give Nigerian institutions and technology providers options while strengthening the country’s control over the technology, infrastructure and standards deployed within its borders.
CBN stresses cybersecurity and operational resilience
The CBN’s Deputy Governor responsible for Financial System Stability, Lamido Yuguda, urged financial institutions to strengthen their management of risks arising from increased reliance on cloud computing and third-party technology providers.
He acknowledged that cloud services offer scalability, flexibility, operational efficiency and opportunities for innovation. However, he warned that their growing adoption also raises concerns around cybersecurity, data protection, operational resilience and dependence on external providers.
Yuguda reiterated that regulated institutions must ensure critical payment transaction data is stored and managed within Nigeria in line with applicable regulatory requirements and the January 1, 2027 deadline.
He cautioned, however, that local data hosting alone would not guarantee security. Financial institutions would still need robust cybersecurity controls, business continuity arrangements, disaster recovery capabilities and comprehensive risk-management frameworks.
Collaboration to strengthen Nigeria’s digital resilience
Yuguda said the CBN would continue working with NITDA and other relevant stakeholders to align financial-sector requirements with national digital infrastructure standards.
The collaboration is intended to strengthen Nigeria’s digital resilience and domestic technology capacity while allowing financial institutions to continue innovating and engaging with global technology developments.
As the implementation deadline approaches, the survey findings highlight the need for financial institutions to move from compliance planning to execution. Progress will depend not only on local hosting capacity but also on investment, effective risk management and the ability to maintain secure and resilient payment operations.
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