As part of measures aimed at strengthening transparency and competition in the country’s digital payments sector, the Central Bank of Nigeria (CBN) has directed banks, fintechs, and other payment service providers to reveal their ultimate beneficial owners.
The directive was contained in a circular dated June 15, 2026, signed by the Director of the Payments System Supervision Department, Dr. Rakiya Yusuf.
VDCInsights report that the new rules apply to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, Payment Service Providers, Super Agents, switching companies, and other licensed operators.
The apex bank noted that “the rapid growth of electronic payments and digital financial services has improved financial inclusion and innovation but has also raised concerns about market dominance, ownership transparency, operational dependence, and data security.”
The latest directive which aligns with existing anti-money laundering and counter-terrorism financing regulations provides that affected institutions must disclose the Ultimate Beneficial Ownership (UBO) of significant shareholders, maintain accurate ownership records, and make such information available to the regulator when requested. .
The apex bank, which also introduced a mandatory data localisation policy, requiring all payment transaction data generated within Nigeria to be stored and managed within the country, has an activation life of January 1, 2027, to icomply.
The CBN equally imposed new market share limits in order to reduce concentration risks in the payments industry,by directing that institutions controlling more than 25 per cent of the consumer issuing market will not be allowed to hold more than 15 per cent of the merchant acquiring market, and vice versa.
The restrictions will apply to activities carried out directly or through related entities within the same corporate group.
The apex bank said the measures are designed to promote a fair, competitive, and resilient payments ecosystem, create opportunities for smaller operators, and safeguard financial stability.
All regulated entities are expected to submit monthly market share reports, while operators have until December 31, 2026, to align with the new market structure requirements.
The Central Bank said it would closely monitor implementation and enforce compliance through supervisory actions where necessary.
