The Central Bank of Nigeria’s (CBN) directive requiring financial institutions and payment service providers to store and manage payment transaction data generated in Nigeria within the country has renewed attention on local technology capacity, cybersecurity, and the financial industry’s readiness ahead of the January 1, 2027, compliance deadline.

The Foundation for Peace Professionals (PeacePro) has welcomed the policy, describing it as a step towards strengthening Nigeria’s digital sovereignty and economic security. However, its implementation also raises questions about domestic technology capacity, data security and the ability of financial institutions to meet the requirements without disrupting services.

In a statement, PeacePro Executive Director, Abdulrazaq Hamzat, urged the Federal Government and relevant regulators to ensure that Nigerian technology companies benefit from the transition rather than allowing it to become an exclusive commercial opportunity for established foreign providers.

The CBN issued the circular on June 15, 2026, and reaffirmed on October 9 that the January 1, 2027, deadline remained unchanged.

Hamzat said Nigeria needed to move beyond consuming foreign digital services and invest in the infrastructure, technical expertise and domestic industries required to retain more value from its expanding digital economy.

He argued that keeping financial data within Nigeria would have limited benefits if the infrastructure, software, intellectual property and technical expertise required to manage it remained largely dependent on foreign providers.

According to him, the policy could stimulate investment in Nigerian data centres, cloud infrastructure, cybersecurity, software development and specialised technical services if supported by deliberate measures to build local capacity.

He maintained that data localisation should form part of a broader strategy to strengthen domestic enterprises, develop the technology workforce and ensure that Nigerians benefit economically from the country’s digital expansion.

However, the extent to which Nigerian technology companies can meet the financial industry’s infrastructure, expertise and security requirements remains an important consideration in implementing the policy.

Financial institutions must also ensure that any changes to their data management arrangements preserve the reliability and security of payment services. The scale of the adjustments required will depend on their existing systems and the specific requirements of the CBN directive.

PeacePro acknowledged concerns within the financial industry about the risks of migrating complex systems within the available timeframe. Hamzat called for constructive engagement and clear technical standards to address these concerns without abandoning the policy’s objectives.

Cybersecurity is another key consideration. Storing data locally does not, by itself, guarantee protection against cyberattacks, unauthorised access or system failures. Effective implementation will also require appropriate security controls, regulatory oversight and reliable backup and recovery arrangements.

The policy could create opportunities for Nigerian technology companies in data centre operations, cloud services, cybersecurity and software development. However, local ownership alone does not guarantee the technical competence, security and reliability required by financial institutions.

Hamzat urged the government and regulators to ensure that qualified Nigerian companies and professionals had a fair opportunity to participate in the emerging market.

He said digital sovereignty should be measured not only by where financial data was stored, but also by Nigeria’s ability to secure it, understand the systems managing it, develop domestic alternatives and retain more of the economic value generated.

As the deadline approaches, the readiness of domestic technology providers, the security of locally stored financial data and the capacity of financial institutions to meet the requirements will be central to assessing the policy’s impact on Nigeria’s digital economy.