The Central Bank of Nigeria (CBN) has directed banks, fintech companies and other payment service providers to disclose their ultimate beneficial owners as part of new measures aimed at strengthening transparency and accountability within the country’s financial system.
The directive was contained in a circular issued on June 15, 2026, and signed by the Director of the Payments System Supervision Department, Dr. Rakiya Yusuf.
The circular was 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 participants in the payments ecosystem.
According to the apex bank, the rapid growth of electronic payments and digital financial services has improved innovation and financial inclusion but has also raised concerns over market concentration, ownership transparency, operational dependence and the handling of critical payment data.
To address these concerns, the CBN introduced a new framework designed to improve transparency, strengthen regulatory oversight and promote a more competitive and resilient payments sector.
Under the framework, all regulated financial institutions engaged in digital payment operations are required to disclose the Ultimate Beneficial Ownership (UBO) of significant shareholders.
The regulator also directed affected institutions to maintain accurate and updated records of beneficial ownership and make such information available whenever requested by the CBN.
According to the bank, the requirement aligns with existing Anti-Money Laundering, Counter-Terrorism Financing and Counter-Proliferation Financing regulations aimed at improving transparency within the financial sector.
In addition, the CBN introduced a mandatory data localisation policy requiring all payment transaction data generated within Nigeria to be stored and managed locally.
The apex bank directed all affected institutions to comply fully with the data localisation requirement on or before January 1, 2027.
The policy is expected to strengthen regulatory oversight, improve data security and ensure compliance with Nigeria’s data protection framework.
The CBN also unveiled new market structure rules aimed at preventing excessive dominance by individual operators across key segments of the payments industry.
Under the new guidelines, any institution controlling more than 25 per cent of the consumer issuing market over a rolling 12-month period will not be allowed to hold more than 15 per cent market share in merchant acquiring activities during the same period.
Likewise, institutions with more than 25 per cent market share in merchant acquiring will be restricted from holding more than 15 per cent market share in consumer issuing.
The restrictions will apply to activities conducted directly by an institution or through affiliated entities within the same corporate group.
According to the CBN, the measures are intended to reduce concentration risks, promote healthy competition and prevent dominant players from exercising excessive influence across multiple segments of the payments value chain.
To support effective monitoring, regulated entities have also been directed to submit monthly market share reports in line with prescribed reporting templates and timelines.
The apex bank gave operators until December 31, 2026, to fully comply with the new market structure requirements.
CBN stated that the measures were introduced to safeguard the integrity of the Nigerian payments system while ensuring the continued growth of digital financial services without creating risks capable of undermining financial stability.
The regulator added that it would closely monitor compliance and apply appropriate supervisory measures where necessary
CBN
