Barely two months to the January 1, 2027 deadline for compliance on data localization, the Nigeria Information Technology Development Agency (NITDA) has revealed that a compliance survey result indicates that 59% of financial institutions surveyed are compliant or expect to be ready by the deadline.
The survey further notes that institutions that are already hosting 25% data or less in Nigeria do not expect to finish implementation by the said deadline. This number however is mostly players in the payment, fintech or microfinance operator.
The survey report was revealed at the CBN-NITDA Executive Regulatory Dialogue with stakeholders on “NSCI Implementation And Data Localisation” held in Lagos on Wednesday.
The dialogue brought together regulators, Data Center operators, Deposit Money Bank executives, fintech operators and technology providers to address implementation challenges ahead of the January 1, 2027 compliance deadline.
It will be recalled that the Central Bank of Nigeria (CBN) issued Circular PSS/DIR/PUB/CIR/001/004 on June 15, 2026, requiring all financial institutions and payment service providers to store and manage payment transaction data generated within Nigeria locally.
Presenting the survey findings, the Special Assistant on Digital Transformation to the NITDA Director-General, Dr. Muhammad Aminu Lawal, disclosed that most challenging to institutions is data matching and timing.
“Institutions ask for phased milestones, guidance and an exceptions route,” the survey noted.
Speaking earlier in his address, the Director-General of NITDA, Kashifu Inuwa Abdullahi, described digital sovereignty as essential instrument in Nigeria’s economic security and technological development.
Abdullahi said the financial sector engagement was designed to assess preparedness and guide institutions yet to meet the requirements.
According to him: “The objective is to check, to find out. Those who are not ready, we are here to provide guidance for them, to handhold them, to make sure we support them to comply with the guidelines.”
He explained that the financial sector was being prioritised because it was Nigeria’s most digitalised sector, adding that NITDA is working with the budget office to prepare ministries, departments and agencies (MDAs) for compliance.
Also speaking at the event, representatives from the Nigeria Data Protection Commission (NDPC), the CBN and NITDA enumerated their roles in the data transition process towards localization.
The NDPC’s focal point is on digital sovereignty, especially on data security. The NDPC will also be complimenting the CBN and NITDA to ensure that personal data is protected while the regulatory institutions monitor the smooth and effective data localization.
The CBN Circular indicates that among data expected in the localization agenda include:
- Payment transaction records and logs
- Bank Verification Number (BVN) data
- Card data and settlement records
- Authentication credentials, metadata, and fraud/risk-scoring engines
This regulation extends to all data-generating organization in Nigeria.
While explaining the difficulties fintech companies may face in latching unto the directive by the said deadline, Governing Council Member, Fintech Association of Nigeria, and CEO, Chrisboroogh, Mr. Olugbenga Paseda called for further “hand-holding” by the regulators to enable them gain clarity on how to execute.
In his views, the CBN Deputy Governor responsible for Financial System Stability, Lamido Abubakar Yugudu said the NSCI supports investment, enhances security of data without stifling innovation.
While expressing optimism that all institutions will be on board by the January 2027 deadline, Director of the Payments System Supervision Department, CBN, Rakiya Yusuf, said the engagement was intended to clarify the requirements and help stakeholders prepare adequately for implementation.
In her words: “I am so glad that the survey that we also put forward to be able to generate some data has shown us that more than 50% of the industry are ready to comply. So the remaining less than 50, will also, with this clarity provided, be able to build on what they have.”
Yusuf said CBN was optimistic that the industry would meet the deadline, stressing that the policy is critical to national sovereignty, transaction visibility, and financial system stability.
She noted, “Ultimately, we are looking forward to that by January 2027, everyone will be on board to have the payments data localised because it’s about our sovereignty, it’s about clarity, it’s about visibility over our transaction data, and it’s about ensuring financial system stability, which is the mandate of the Central Bank of Nigeria.”
Co-Chairman of the Technical Working Group of the National Sovereign Cloud Initiative (NSCI), and CEO of Digital Realty Nigeria, Ikechukwu Nnamani, during a panel session presented the needs of data center operatives. According to him, there should be, at least two data centers in every Nigerian State capital.
He said that banks should stand up for data center operators to enable them access long-term local funding at low interest rate. “Data Centers need patient capital, not at 30% interest rate. More data center service providers should come in.”
He summised that what data center operators need from banks are compliance and financing.
Director, Cloud Ecosystem, Huawei Cloud, Mr. Paul Adigu, in his submission expressed the infrastructure company’s readiness to work with operators to ensure smooth migration, while also pledging the company’s readiness to comply with regulations.
Regulators and implementation Committee members at the event insist that there will be no extension to the January 1, 2027 deadline.
