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CBN directs banks, PSPs to store, manage payment transaction data in Nigeria
The Central Bank of Nigeria (CBN) has directed banks and payment service providers (PSPs) to store and manage payment transaction data in Nigeria.
In a circular signed by Rakiya Yusuf, director of the payments system supervision department, on Monday, CBN said all financial institutions facilitating payments within Nigeria should ensure that data generated in the country are stored and managed locally in line with applicable data protection laws.
Which is better CBN directs banks, PSPs to store, manage payment transaction data in Nigeria or CBN directs banks, PSPs to store, manage payment data in Nigeria
The requirement will take effect from January 1, 2027.
CBN also directed banks, PSPs and other financial institutions (OFI) with digital payment operations to disclose the ultimate beneficial ownership (UBO) of significant shareholders in line with anti-money laundering and counter-terrorism financing regulations.
The institutions are required to maintain accurate and up-to-date ownership records and make them available to the regulator on request.
The apex bank also directed regulated entities to submit monthly market share returns using prescribed templates and timelines.
Elected institutions have until December 31, 2026, to comply with the new market structure requirements.
CBN said it would monitor compliance and impose supervisory sanctions where necessary in line with applicable laws, regulations and guidelines.
The financial regulator had also limited the market share for financial institutions involved in card issuing and merchant acquiring services.
CBN said any financial institution controlling over 25 percent of the card issuing market would be limited to 15 percent in merchant acquiring market.
Also, the apex bank said financial institutions with over 25 percent share in merchant acquiring market would be restricted to 15 percent in card issuing segment.
