Over 50% of financial industry ready for data localisation — CBN

By Babajide Komolafe The Central Bank of Nigeria (CBN) yesterday said that more than 50 per cent of Nigeria’s financial industry is ready to comply with data localisation requirements, stressing that the country must strengthen its digital sovereignty without undermining innovation and global technology integration. The Director, Payment System Supervision Department, CBN, Dr.

Rakyat Yusuf, disclosed this at the CBN-National Information Technology Development Agency (NITDA) Executive Regulatory Dialogue on the National Sovereign Cloud Initiative (NSCI) and data localisation in Lagos. Yusuf said a survey conducted by the apex bank showed that more than half of the industry was prepared to comply, expressing optimism that the remaining institutions would make progress following clarifications provided at the dialogue.

“A survey we conducted to generate data on the level of preparedness has shown that more than 50 per cent of the industry is ready to comply,” she said. She added: “Ultimately, we expect everyone to be on board by January 2027 to ensure that payment data is properly localised.” According to her, the policy is about “our sovereignty, clarity and visibility over our transaction data,” as well as ensuring financial system stability.” Yusuf said the CBN’s priority was to support financial institutions in achieving compliance rather than resorting immediately to sanctions.

“However, where we identify a deliberate attempt to avoid compliance, sanctions will come into play. There will be sanctions for non-compliance,” she warned. Also speaking, the Deputy Governor, Financial System Stability, CBN, Lamido Yuguda, said Nigeria must strengthen control over its critical digital infrastructure while remaining open to global technological developments.

He said: “The objective of the National Sovereign Cloud Initiative should not be to constrain innovation or isolate Nigeria from global technological developments. Rather, it should provide the security, resilience, and regulatory certainty necessary to support investment, innovation, and sustainable growth.” Yuguda said the resilience of the financial system increasingly depended on the digital infrastructure supporting it.

He added: “We must strengthen digital sovereignty while remaining globally competitive; enhance security without constraining innovation; and promote localisation while ensuring that the financial system continues to benefit from efficient and reliable technology.” Meanwhile, NITDA Director-General, Kashifu Abdullahi, assured financial institutions that Nigeria’s technology ecosystem had the capacity to support the implementation of the sovereign cloud initiative.

“Today’s workshop is to give you the assurance that the technology exists, the Nigerian tech ecosystem is capable, and it can support you in complying with your regulator’s mandate or directive,” he said. Abdullahi said digital sovereignty was not about isolation or building every technology locally, but developing Nigeria’s capacity to compete globally and maintain control over critical infrastructure.

“It is about building our digital capacity to compete in the world we are in today,” he said. He warned that external disruptions, including submarine cable outages and geopolitical crises, should not automatically affect Nigeria’s payment system. Abdullahi added that the initiative would provide financial institutions with greater choice of technology providers and help prevent dependence on a single vendor, country or technology platform.