22 Financial institutions yet to begin data localisation — NITDA survey

By Juliet Umeh Twenty-two of 44 financial institutions surveyed are yet to begin implementing measures to comply with Nigeria’s data localisation requirements, with the January 1, 2027 deadline approaching. The findings were presented by Dr Muhammad Aminu Lawal, Special Assistant on Digital Transformation to the Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa Abdullahi, at the Executive Regulatory Dialogue on National Cloud and Software Infrastructure (NSCI) Implementation and Data Localisation in Lagos.

The dialogue, convened by NITDA and the Central Bank of Nigeria (CBN), brought together regulators, financial sector executives, banks, fintech operators and technology service providers. According to the survey, 26 institutions, representing 59 per cent of respondents, had completed the required actions or expected to complete them by the deadline.

Fifteen said they were unlikely or very unlikely to finish on time, while three could not assess their readiness. The presentation summarised the findings by stating that “half are still planning; 22 of 44 have not started implementing.” It classified 59 per cent of the institutions as “on track” and 34 per cent as “at risk”. However, the presentation clarified that the responses were self-reported, anonymised and aggregated, stressing that they did not constitute a formal compliance assessment.

The survey also showed that institutions had made more progress in identifying the data and systems covered by the requirements than in securing funding, engaging local providers or migrating systems. While 70 per cent had identified data or systems within the scope of the requirements, 52 per cent had mapped their hosting and administration arrangements.

In contrast, only 25 per cent had secured board or executive approval and a budget, 23 per cent had contracted local providers, while 18 per cent had begun migration or remediation. “Mapping is done; budgets, contracts and migration lag,” Lawal said. Uncertainty surrounding the requirements was also identified as a major obstacle to implementation.

The survey found that 64 per cent of institutions wanted a definition of “payment transaction data”, while 38 per cent sought clarification on what it means for data to be “stored and managed in Nigeria”. Twenty-nine institutions said they depended on further clarification to proceed with their preparations. The presentation identified a written clarification on the scope of the requirements as a priority, alongside clearer transition milestones, an exceptions process and guidance on existing contracts.

It further showed that half of the institutions were proceeding on working assumptions while awaiting clarification, while 16 per cent said material work had been put on hold. Summarising the findings, the presentation said compliance was “within reach for about six in 10, not yet for the rest”, adding that “clarity is the critical path” for institutions preparing for the January 2027 deadline.