CBN Reaffirms January 2027 Data Localisation Deadline for Financial Sector
The Central Bank of Nigeria (CBN) has firmly reiterated its directive for financial institutions and Fintech companies to migrate all payment transaction data generated within Nigeria to local hosting by January 1, 2027. This non-negotiable deadline underscores the nation’s commitment to data sovereignty and robust local data management.
During the “CloudReady Nigeria Financial Services Roundtable” in Lagos, Dr. Rakiya Opemi Yusuf, Director of the Payments Systems Supervision Department at the CBN, clarified that the compliance date remains unchanged. Represented by Mr. Babatunde Ajiboye, Assistant Director of the same department, Dr. Yusuf emphasised the critical need for a comprehensive approach to data migration. The CBN circular of June 15, 2026, mandates that the entire data lifecycle – from creation and processing to storage and eventual disposal – must be managed within Nigeria. This necessitates a thorough data audit, classification, agreement on local architecture and contracts, followed by mitigation, testing, and independent verification.
The imperative for local data hosting was further amplified by Dr. Vincent Olatunji, National Commissioner and CEO of the Nigeria Data Protection Commission (NDPC). Speaking through Ibukunoluwa Owa, Head of the Regulations Unit at NDPC, Dr. Olatunji highlighted the strategic vulnerability and economic instability of Africa hosting less than one per cent of global data centres. He referenced the National Digital Cloud Policy, which aims to transform Nigeria from a consumer of global cloud infrastructure into a competitive hub for digital infrastructure, local skills, and cloud exports.
Mr. Temitope Osunrinde, Executive Director of Africa Hyperscalers, acknowledged Nigeria’s significant policy strides, including the National Cloud Policy, National Sovereign Cloud Policy, and the Nigeria Data Protection Act, in bolstering digital sovereignty. He stressed that successful implementation across the financial sector hinges on clear guidelines, appropriate data and workload classification, resilient infrastructure, trusted providers, and coordinated regulation. Cloud service and data centre providers present at the forum, including Nobus Cloud, Open Access Data Centres (OADC), and Layer 3, expressed their readiness to support the seamless migration and hosting of financial data within Nigeria. This directive carries significant implications for legal counsel, compliance officers, and executives, requiring proactive planning and investment to ensure adherence and mitigate risks associated with non-compliance.
