Nigeria proposes data sovereignty law requiring local payment data storage

The House of Representatives in Nigeria introduced a data sovereignty bill sponsored by Lanre Okunlola. The proposed legislation seeks to establish the National Payment Data Protection and Sovereignty Commission. It requires banks, financial technology companies, and payment service providers to store their primary payment data infrastructure within Nigeria. Violations could incur a minimum fine of N1bn, and unauthorized transfer of strategic payment transaction data outside Nigeria could result in a 10-year prison term and a N500m fine.

The legislation aims to strengthen Nigeria’s control over its financial information infrastructure and reduce reliance on offshore payment data storage. By imposing strict localization requirements on financial institutions, the bill could significantly change operational costs and regulatory compliance for companies handling payment data.