Banks seek more time for CBN data localisation

Nigerian banks and fintech firms are requesting additional time to comply with the Central Bank of Nigeria's deadline for data localisation, which is set for January 2027. This deadline leaves little room for the complex process of transferring large volumes of financial data from overseas cloud environments to local infrastructure.

At the inaugural GrowthX by Techeconomy and TiLAwards in Lagos, executives raised concerns over the lack of clear regulatory guidance and a phased implementation of the policy. The CBN directive requires various industry participants to store and manage payment transaction data within Nigeria to strengthen regulatory oversight and reduce reliance on foreign infrastructure.

However, compliance is challenging due to the scale of migration required, involving changes to cloud architecture, disaster-recovery systems, cybersecurity controls, and core technology infrastructure while maintaining uninterrupted services. The Chief Technology Officer of FCMB, Blessing Ehize, emphasized the need for regulatory clarity and a structured implementation roadmap.

He noted that despite Nigeria's capacity to undertake the migration, the industry requires sufficient time to plan and execute it without creating operational risks. Hakeem Adeniji-Adele, Deputy Managing Director of eTranzact, also pointed out the tight six-month timeframe due to the volume of data currently hosted in overseas cloud environments.

He proposed a phased approach, dividing compute and storage migration to avoid rushing the process. The concerns highlight a broader challenge in balancing the push for greater control over financial data with the need to maintain resilient and reliable digital services.