CBN Orders Banks, Fintechs To Reveal Beneficial Owners, Introduces New Payment System Regulations

The Central Bank of Nigeria (CBN) has introduced new regulatory measures requiring banks, fintech firms, and other licensed payment service providers to disclose their ultimate beneficial owners as part of efforts to strengthen transparency and oversight within the country’s digital financial sector.

The directive was outlined in a circular dated June 15, 2026, signed by the Director of the Payments System Supervision Department, Dr. Rakiya Yusuf, and addressed to deposit money banks, microfinance banks, mobile money operators, payment service providers, and other stakeholders in the fintech industry.

According to the apex bank, the policy is designed to improve transparency in ownership structures as Nigeria’s digital payments landscape continues to grow, with several operators gaining significant influence across different segments of the market.

The CBN noted that while technological innovation has boosted financial inclusion and improved transaction efficiency, it has also created concerns regarding market concentration, systemic risks, and limited visibility into ownership arrangements.

Under the new framework, all regulated institutions must maintain accurate and updated records of their ultimate beneficial owners and provide such information to the regulator whenever requested.

The central bank also introduced a data localisation policy, directing that all payment transaction data generated within Nigeria must be stored and processed locally. Institutions are expected to achieve full compliance with this requirement by January 1, 2027.

Additionally, the CBN unveiled new market-share restrictions aimed at preventing excessive market dominance. Under the rules, any institution controlling more than 25 percent of the consumer issuing market will be restricted from exceeding 15 percent of the merchant acquiring market, and vice versa.

According to the regulator, the measures are intended to encourage healthy competition, reduce systemic vulnerabilities, and prevent any single operator from gaining disproportionate control across multiple areas of the payments ecosystem.

To facilitate compliance, the CBN has instructed all regulated entities to submit monthly market-share reports using approved templates and reporting timelines. Operators have until December 31, 2026, to align their operations with the new requirements.

The apex bank stated that implementation will be closely monitored and that supervisory sanctions may be imposed on institutions that fail to comply, emphasizing that the reforms are aimed at preserving the stability, transparency, and integrity of Nigeria’s fast-growing digital payments industry.