CBN Data Localisation, AML Directives Signal Shift Towards More Resilient Nigerian Financial System

Bennett Oghifo

The Central Bank of Nigeria’s (CBN) recent directives on automated financial crime monitoring and the localisation of payment transaction data signal a broader push to strengthen the resilience, transparency and sovereignty of Nigeria’s financial system, according to Deputy Managing Director, Datamellon, Bashir Dantata.

In March 2026, the CBN directed all licensed financial institutions to implement automated Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) monitoring systems, with institutions required to submit implementation roadmaps by June 10.
Five days later, the apex bank issued a separate circular directing banks, fintechs, mobile money operators and payment service providers to ensure that payment transaction data generated within Nigeria is stored and managed within the country by January 1, 2027.

While the two directives address different regulatory requirements, Dantata noted that their combined impact points to a broader transformation of Nigeria’s financial technology and data infrastructure.
“Data localisation should not be viewed simply as a question of where information is stored. It raises a more fundamental question about whether financial institutions have the enterprise architecture required to balance regulatory compliance, resilience, security and innovation,” said Bashir Dantata, Deputy Managing Director, Datamellon.

According to Dantata, payment processing systems, customer identity records, fraud detection platforms, analytics environments and artificial intelligence workloads have different operational and regulatory requirements. Treating these workloads as though they require a single infrastructure model could create unnecessary complexity and increase implementation costs.
Instead, financial institutions will need to assess where individual workloads should operate based on factors such as regulatory sensitivity, operational criticality, performance, resilience and business value.
Dantata also highlighted the connection between the CBN’s AML and data localisation requirements, noting that effective AML systems depend on timely access to complete and reliable transaction data, supported by strong data governance, clear audit trails and well-managed data architectures.
As financial institutions prepare to meet the January 1, 2027 data localisation deadline, he said the ability to integrate these requirements into a broader technology strategy could become an important differentiator.

Datamellon recommends that financial institutions begin by establishing a clear understanding of where payment transaction data currently resides and how it moves across their technology environments. Institutions should also classify workloads according to regulatory sensitivity, operational criticality and business value before determining the most appropriate architecture for each workload.
Such an approach can help organisations reduce migration risks and unnecessary costs while creating technology foundations capable of supporting emerging capabilities, including artificial intelligence, advanced analytics, intelligent automation and real-time fraud detection.
The broader regulatory direction also suggests that financial institutions will need to view compliance as part of their long-term digital transformation strategy rather than as a series of disconnected regulatory projects.

With the January 2027 deadline approaching, institutions that begin aligning their data, technology and compliance strategies early will be better positioned to meet regulatory requirements while strengthening their capacity for future digital banking and financial innovation.
Datamellon is an AI transformation company headquartered in London, with operations across Sub-Saharan Africa and the Middle East. The company helps organisations leverage data, artificial intelligence and technology to drive transformation, improve operational efficiency and build resilient digital infrastructure.