{"id":778,"date":"2026-06-16T20:47:56","date_gmt":"2026-06-16T20:47:56","guid":{"rendered":"https:\/\/consumerconnectng.com\/?p=778"},"modified":"2026-06-16T21:55:59","modified_gmt":"2026-06-16T21:55:59","slug":"data-security-cbn-directs-banks-fintechs-to-store-consumer-information-locally","status":"publish","type":"post","link":"https:\/\/consumerconnectng.com\/?p=778","title":{"rendered":"Data Security: CBN directs banks, FinTechs to store consumer information locally"},"content":{"rendered":"<p>*<strong><em>The Central Bank of Nigeria explains the new banking policy requires banks, and other financial institutions to retain sensitive consumer transaction records within the country instead of relying on foreign-based servers, to strengthen data security and improve regulatory supervision, among other purposes<\/em><\/strong><\/p>\n<p>Alexander Davis | ConsumerConnect<\/p>\n<p>As part of its new regulatory measures to enhance oversight of the country\u2019s fast-growing digital financial ecosystem, the Central Bank of Nigeria (CBN) has directed all Deposit Money Banks (DMBs), Financial Technology (FinTech) firms, and other licensed payment service providers to ensure that all payment transaction data generated within the West African country is stored on local servers.<\/p>\n<p><em>ConsumerConnect<\/em> reports the CBN disclosed the implementation of this directive, which underscores the principle of data governance and sovereignty, would commence from January 1, 2027.<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"xFsLkJgXvU\"><p><a href=\"https:\/\/consumerconnectng.com\/?p=810\">Price Hikes: How increased LPG imports will sustain supply, enhance market stability in Nigeria &#8211;Minister<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"\u201cPrice Hikes: How increased LPG imports will sustain supply, enhance market stability in Nigeria \u2013Minister\u201d \u2014 ConsumerConnect \" src=\"https:\/\/consumerconnectng.com\/?p=810&amp;embed=true#?secret=h0cXpVTevC#?secret=xFsLkJgXvU\" data-secret=\"xFsLkJgXvU\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>The Bankers&#8217; Bank also noted that under the new banking policy, financial institutions would be required to retain sensitive transaction records within Nigeria rather than relying on foreign-based servers.<\/p>\n<p>The CBN also stated that the move is intended to strengthen data security, improve regulatory supervision, and ensure quicker access to financial information for monitoring and investigative purposes.<\/p>\n<p>Besides, the rapid expansion of digital payments and FinTech services in Nigeria has made stronger data governance necessary, said the Bank.<\/p>\n<p>According to the banking sector regulator, this development especially concerns the growth around cyber risks, compliance gaps, and cross-border data access delays during financial crime investigations.<\/p>\n<p>The Bank further noted that keeping data locally would enhance national control over critical financial infrastructure.<\/p>\n<p>The CBN said new-fangled industry regulatory policy would drive further investments in local data centres and cloud storage capacity, as operators adjust to the new compliance requirements.<\/p>\n<p>The industry regulator, however, warned that full implementation would be mandatory by the 2027 deadline, with possible sanctions for institutions that fail to comply with this directive.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>*The Central Bank of Nigeria explains the new banking policy requires banks, and other financial institutions to retain sensitive consumer transaction records within the country&hellip;<\/p>\n","protected":false},"author":2,"featured_media":781,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"_FSMCFIC_featured_image_caption":"Olayemi Cardoso, Governor of 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href=\"https:\/\/consumerconnectng.com\/?cat=20\" rel=\"category\">Highlights<\/a> <a href=\"https:\/\/consumerconnectng.com\/?cat=4\" rel=\"category\">Markets<\/a>","tag_info":"Markets","comment_count":"0","_links":{"self":[{"href":"https:\/\/consumerconnectng.com\/index.php?rest_route=\/wp\/v2\/posts\/778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/consumerconnectng.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/consumerconnectng.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/consumerconnectng.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/consumerconnectng.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=778"}],"version-history":[{"count":2,"href":"https:\/\/consumerconnectng.com\/index.php?rest_route=\/wp\/v2\/posts\/778\/revisions"}],"predecessor-version":[{"id":832,"href":"https:\/\/consumerconnectng.com\/index.php?rest_route=\/wp\/v2\/posts\/778\/revisions\/832"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/consumerconnectng.com\/index.php?rest_route=\/wp\/v2\/media\/781"}],"wp:attachment":[{"href":"https:\/\/consumerconnectng.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/consumerconnectng.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/consumerconnectng.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}