Reps Bill Proposes ₦1bn Fines for Offshore Payment Data

Nigeria's push to keep payment data at home could move from a central bank rule to an act of the National Assembly, with prison terms attached. A bill before the House of Representatives would create a new regulator for payment data and make it an offence to send that data abroad without approval, BusinessDay reports.

Titled "A Bill for an Act to Establish the National Payment Data Protection and Sovereignty Commission", it is sponsored by Lanre Okunlola, who represents Surulere II Federal Constituency in Lagos. It was introduced at a plenary session last week and is expected to be debated in the coming weeks, according to BusinessDay and Business Post. It has not been passed.

What the bill says

• Section 8 declares payment transaction data generated in Nigeria a "Strategic National Economic and Security Asset". Section 9 says it must be stored in Nigeria.
• Section 10 requires domestic payment transactions to be processed through infrastructure physically located in the country.
• Banks, fintech companies, payment service providers, switching companies and settlement system operators would have to keep their primary payment data infrastructure in Nigeria. Hosting it abroad would need approval from the new commission together with the Central Bank of Nigeria.
• Sections 18 and 19 allow cross-border transfers only with the commission's authorisation, where they are needed for international settlement, national security is protected, safeguards are in place and the CBN has approved.
• Payment infrastructure would be classed as Critical National Information Infrastructure, and the commission could set minimum cybersecurity and resilience standards.

Section 23 goes further for individuals: anyone who transfers payment data outside Nigeria without authorisation would face up to 10 years in prison, a fine of at least ₦500m, or both.

Related · InnovationHalf of Banks Have Not Started on CBN's Data RuleA NITDA survey found 22 of 44 banks and fintechs had not begun moving payment data into Nigeria, two months before the CBN's 1 January deadline.

Why it matters now

The bill arrives as banks and fintechs race to meet the CBN's own deadline. A June circular told payment operators to host and process Nigerian payment data locally by 1 January 2027, and the central bank has said the date will not move. At a CBN and NITDA dialogue in Lagos on 28 October, a survey showed 22 of 44 institutions had not started moving their data.

A circular can be enforced with regulatory sanctions. The bill would add criminal penalties and a dedicated commission, alongside the CBN, NITDA and the Nigeria Data Protection Commission, which already oversee parts of the same infrastructure. To become law it still needs further readings in the House, passage by the Senate and the President's assent.