Stakeholders advocate phased approach to payments data localisation - ITREALMS

The Chief Technology Officer of First City Monument Bank (FCMB), Blessing Ehize, has welcomed the Central Bank of Nigeria's (CBN) payment data localisation directive, describing it as a vital step toward strengthening Nigeria's digital and financial infrastructure while emphasizing the value of continued industry engagement ahead of the January 2027 compliance deadline, reports ITREALMS.

The CBN has directed banks and fintech companies to ensure that all payment data currently hosted outside Nigeria is domiciled within the country by January 1, 2027.

Speaking during a panel session at the inaugural GrowthX by Techeconomy conference in Lagos, Ehize noted that ongoing collaboration between regulators and industry stakeholders will help provide necessary implementation guidance and support a smooth transition across the financial services ecosystem.

According to Ehize, additional guidance regarding technical and operational considerations, such as specific data hosting requirements and the treatment of hybrid-cloud environments, would help institutions align their preparations and build structured transition plans.

“As an industry, we are committed to supporting the objectives of the policy,” Ehize said. “Additional guidance on implementation priorities and technical requirements would help institutions align their plans and execute the transition effectively.”

While financial institutions are actively assessing the infrastructure, technology investments, and migration strategies required to meet the policy objectives, Ehize advocated for a phased implementation approach featuring clearly defined milestones.

Expressing confidence in the country's technical capabilities, he noted that a structured roadmap would allow institutions to prioritize investments, manage transition activities effectively, and preserve service reliability and customer experience across the financial sector.

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Also speaking during the session, Hakeem Adeniji-Adele, Deputy Managing Director of eTranzact, highlighted that the sheer scale of the infrastructure and data involved reinforces the need for a carefully coordinated implementation strategy.

“A phased migration approach could support effective implementation by allowing institutions to prioritise critical workloads while maintaining service continuity throughout the transition process,” Adeniji-Adele said.

He noted that the core challenge lies less in the industry's willingness to comply and more in executing data and infrastructure migration efficiently while maintaining strict operational resilience.

Adeniji-Adele also acknowledged the CBN’s ongoing engagement with financial technology operators, expressing optimism that continued cooperation between regulators and industry players will ensure a successful ecosystem-wide transition.

Panellists at the session ultimately converged on the view that planning, ecosystem-wide coordination, and phased execution are essential to advancing data localisation objectives while safeguarding the stability of Nigeria's financial services industry.

Photo Caption: L-r: Hakeem Adeniji-Adele, Deputy Managing Director, eTranzact Int’l PLC; Blessing Ehize, Chief Technology Officer, First City Monument Bank (FCMB); Dr. Krish Ranganath, Chief Executive Officer, UniCloud Africa; Roseline Ilori, Founder & CEO, Bridge57 Solutions Limited; Adesola Akinsanya, President, Nigeria Internet Registration Association (NiRA); Dr. Ayotunde Coker, CEO, Open Access Data Centre (OADC); and Elsie Godwin, Co-founder/COO, Cashwise Finance, during a panel session at the GrowthX by Techeconomy conference in Lagos.