*The Central Bank of Nigeria acknowledges the growth of digital financial services and attendant innovation, efficiency, and financial inclusion, but notes the increasing concerns about market concentration, systemic importance, operational dependence, ownership transparency, and location of critical payments data in the ecosystem
Gbenga Kayode | ConsumerConnect
In line with the current efforts at restructuring the country’s fast-growing digital payments ecosystem, the Central Bank of Nigeria (CBN) has directed banks, Other Financial Institutions (OFIs), Financial Technology (FinTechs) firms, and other payment service providers to disclose their ultimate beneficial owners.
The CBN noted the regulatory measures in a circular dated Monday, June 15, 2026, which Dr. Rakiya Yusuf, Director of Payments System Supervision Department at CBN, signed and issued to the industry stakeholders.
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The Bankers’ Bank directly addressed the circular to Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Mobile Money Operators, switching companies, Payment Terminal Service Providers, Payment Solution Service Providers, Super Agents, and other licensed operators.
ConsumerConnect reports the latest circular has come amid the reported rapid expansion of electronic payments, and attendant increasing dominance of a few players across critical segments of the payments ecosystem in Nigeria.
The Bank also restated its earlier directive to the financial institutions and technology firms to localise payment transaction data and comply with new market share limits designed to curb concentration risk.
The regulatory intervention represents one of the most significant interventions by the CBN in the payments industry in recent times.
It is noted the directive is aimed at restructuring the fast-growing digital payments ecosystem in the West African country.
As the growth of digital financial services has boosted innovation, efficiency, and financial inclusion, it has also heightened concerns over market concentration, systemic importance, operational dependence, ownership transparency, and location of critical payments data.
The banking sector regulator, in the circular, said the new framework was expected to improve transparency, strengthen oversight, and promote a more competitive and resilient payments space in the country.
According to CBN, the new framework requires all DMBs, payment service providers, and other financial institutions with digital payment operations to disclose the Ultimate Beneficial Ownership (UBO) of significant shareholders.
Besides, the CBN directed the affected institutions to maintain accurate and up-to-date records of beneficial ownership, and make such information available to the regulator whenever such are requested.
The bank also explained that the directive aligned with existing Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Financing regulations.
It said the measure was expected to strengthen transparency around ownership structures in the financial system.
Earlier, the Central Bank of Nigeria had introduced a mandatory data localisation policy requiring all payment transaction data generated within Nigeria to be stored and managed within the country.
The circular stipulated that all financial institutions and participants facilitating payments in the country must ensure full compliance with the requirement by January 1, 2027.
The move is expected to deepen regulatory oversight of payment transactions, strengthen data security, and reinforce compliance with Nigeria’s data protection framework.
The central bank further introduced market structure rules aimed at preventing excessive dominance by individual institutions across key payment segments.
Under the new framework, any licensed financial institution engaged in consumer issuing activities that controls more than 25 percent of market share in consumer issuing over a rolling 12-month period will be prohibited from holding more than 15 percent market share in merchant acquiring during the same period.
Similarly, institutions with more than 25 percent market share in merchant acquiring activities will not be permitted to hold more than 15 percent market share in consumer issuing.
The Bank stated that restrictions would apply whether the activities are carried out directly by an institution or through related entities within the same corporate group, the central bank stated.
Basically, the new provisions are targeted at reducing concentration risks while preventing dominant players from exercising excessive influence across multiple segments of the payments value chain.
The measures effectively introduce structural safeguards intended to foster competition, create room for smaller operators, and reduce the systemic risks associated with excessive market concentration.
To facilitate monitoring, CBN directed all regulated entities to submit monthly market share returns based on prescribed reporting templates and timelines.
Affected institutions were allowed until December 31, 2026, to fully align their operations with the new market structure requirements.
The CBN said it had “observed significant structural developments within the Nigerian Payments ecosystem, characterised by rapid growth in electronic payments, increasing adoption of digital financial services, and the emergence of operators with substantial market presence across key payment activities.
The circular also explained: “While these developments have supported innovation, efficiency, and financial inclusion, they have also raised concerns relating to market concentration, operational dependence, systemic importance, transparency of ownership structures, and the localisation of critical payment data.
It said: “Accordingly, the CBN hereby issues this circular to improve transparency through beneficial ownership disclosure, address concentration risk, promote a fair, competitive, and resilient payments ecosystem.
“The circular further aims to safeguard the integrity of the Nigerian payments system and ensure the localisation of payments transaction data within Nigeria.”
The apex bank said it would closely monitor implementation and enforce compliance through supervisory measures where necessary.
The latest intervention underscores CBN’s determination to strengthen governance standards within the payments ecosystem while ensuring that the rapid growth of digital financial services does not create vulnerabilities capable of threatening financial stability.