Banks seek more time for CBN data localisation

Nigerian banks and fintech firms are seeking additional time to meet the Central Bank of Nigeria's (CBN) data localisation directive deadline of January 2027. Industry executives argue that the six-month window provided is too short for the complex task of migrating large volumes of financial data from overseas cloud environments to local infrastructure.

The CBN directive mandates that payment transaction data generated in Nigeria must be stored and managed within the country, aiming to strengthen regulatory oversight, improve data sovereignty, and reduce reliance on infrastructure outside Nigeria. However, financial-sector technology executives express concerns about the scale of migration required in the given timeframe.

FCMB's Chief Technology Officer, Blessing Ehize, highlighted the need for regulatory clarity, particularly regarding which data must be hosted on-premise versus remaining in hybrid-cloud environments. He also emphasized the lack of a structured implementation roadmap, stating that banks require sufficient time to plan and execute the migration without incurring unnecessary operational risks.

ETranzact's Deputy Managing Director, Hakeem Adeniji-Adele, concurred that the timeframe is too tight due to the volume of data currently hosted in overseas cloud environments. He suggested a phased approach, separating compute and storage migration, instead of requiring institutions to move all workloads simultaneously.