CBN and NITDA say only 59% of institutions ready for data localisation
AnalysisThursday 29 October 2026
The CBN and NITDA disclosed that only about 57-59% of financial institutions are ready for the January 2027 data localisation deadline, based on an industry survey. The regulator said it will consider banks' challenges while keeping the deadline in place.
Institutions with gaps in readiness face a tight deadline to host payment data locally, which may drive compliance spending and possible deadline relief requests.
Demand deposits at Nigerian banks rose by about $1.2 billion (N1.69trn) over three months, according to central bank data. Analysts linked the rise to bank securities purchases, private-sector lending and government borrowing.
CBN monetary statistics show net credit to government reached about $29 billion (N39.4trn) in September 2026, up 63.1% year on year. Private-sector credit rose 15.7% to about $62 billion (N83.9trn) over the same period.
Central Bank data show the average maximum lending rate rose to 32.62 percent even after the MPC cut the monetary policy rate to 23 per cent. Loan pricing moved against the policy direction, which matters for borrowers and lenders.
The CBN approved the nomination of Adedapo Olagunju, who has led JPMorgan's West African operations since 2018, as managing director of the proposed Nigerian merchant bank. The appointment is tied to the approval-in-principle for the new subsidiary.
The Central Bank of Nigeria granted approval-in-principle for JPMorgan Merchant Bank Nigeria Limited. JPMorgan has since deposited N50 billion with the CBN, a key requirement of its merchant banking licence application.
The 2026 Access to Financial Services in Nigeria survey finds 64.4% of adults use digital financial services. The financially excluded share fell to 21% from 26% in 2023.
EFInA's ninth Access to Financial Services in Nigeria survey, released 16 September 2026, found 79% of adults use a financial product and 64.4% use digital financial services. Formal credit penetration stands at 10% nationally, showing that account ownership is still outpacing lending.
