The Central Bank of Nigeria (CBN) has directed banks, fintech companies and other payment service providers to disclose their Ultimate Beneficial Owners (UBOs) as part of sweeping reforms aimed at strengthening transparency, reducing concentration risks and enhancing oversight within the country’s digital payments ecosystem.
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.
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 introduces a series of new regulatory requirements expected to reshape Nigeria’s rapidly expanding payments industry.
The apex bank said the measures were introduced in response to significant developments in the payments ecosystem, including the rapid growth of electronic transactions, increasing adoption of digital financial services and the emergence of dominant players across key segments of the market.
According to the CBN, while these developments have driven innovation, efficiency and financial inclusion, they have also raised concerns about market concentration, operational dependence, systemic importance, ownership transparency and the management of critical payments data.
Under the new framework, all regulated financial institutions with digital payment operations are required to disclose the Ultimate Beneficial Ownership of significant shareholders and maintain accurate, up-to-date ownership records.
The apex bank also directed affected institutions to make such information available whenever requested by regulators.
The CBN explained that the disclosure requirement aligns with existing Anti-Money Laundering, Combating the Financing of Terrorism and Counter-Proliferation Financing regulations and is intended to improve transparency around ownership structures within the financial system.
In addition to ownership disclosure, the regulator introduced a mandatory data localisation policy requiring all payment transaction data generated within Nigeria to be stored and managed within the country.
The circular stipulates that all institutions involved in payment processing and digital financial services must achieve full compliance with the requirement by January 1, 2027.
According to the CBN, the measure is expected to strengthen regulatory oversight, improve data security and support compliance with Nigeria’s data protection framework.
The apex bank also unveiled new market structure rules designed to curb excessive dominance and concentration within the payments sector.
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Under the framework, any licensed financial institution controlling more than 25 per cent of the consumer issuing market over a rolling 12-month period will be prohibited from holding more than 15 per cent market share in merchant acquiring activities during the same period.
Similarly, institutions with more than 25 per cent market share in merchant acquiring activities will not be allowed to control more than 15 per cent of the consumer issuing market.
The restrictions will apply whether such activities are conducted directly by the institution or through affiliated entities within the same corporate group.
The CBN said the provisions are intended to reduce concentration risks, prevent dominant operators from exercising excessive influence across multiple segments of the payments value chain and create opportunities for smaller players to compete effectively.
To facilitate regulatory monitoring, all affected institutions have been directed to submit monthly market share returns using prescribed reporting templates and timelines.
The central bank granted operators until December 31, 2026, to fully align their operations with the new market structure requirements.
Explaining the rationale behind the reforms, the apex bank stated that it had observed significant structural changes within the Nigerian payments ecosystem that warranted stronger regulatory safeguards.
“While these developments have supported innovation, efficiency, and financial inclusion, they have also raised concerns relating to market concentration, operational dependence, systemic importance, transparency of ownership structures, and the localisation of critical payment data,” the CBN stated.
The regulator added that the framework was designed to improve transparency through beneficial ownership disclosure, address concentration risks, promote competition and ensure the localisation of payment transaction data within Nigeria.
The CBN also warned that compliance would be closely monitored and enforced through supervisory measures where necessary.
The latest intervention underscores the apex bank’s determination to strengthen governance standards, safeguard financial stability and ensure that the continued growth of digital financial services does not create vulnerabilities within Nigeria’s financial system.