Nigerian banks and payment service providers have warned that the Central Bank of Nigeria’s (CBN) January 1, 2027 deadline for localizing payment systems is too short, risking disruption to financial transactions. The deadline, set by the CBN as part of its broader strategy to reduce reliance on foreign payment platforms, has raised concerns among industry players.
The CBN’s directive requires all payment services to be fully localized by the specified date. This includes the use of local infrastructure and technology for processing transactions. Banks and payment companies argue that the tight timeline does not allow sufficient time to implement the necessary changes.
Industry representatives have expressed fears that the rushed schedule could lead to operational challenges, including system failures and delays in transaction processing. Some have called for an extension of the deadline to ensure a smoother transition.
The push for payment localization is part of Nigeria’s efforts to enhance financial sovereignty and reduce the dominance of foreign payment systems. However, the rapid implementation has sparked debates about the readiness of the local tech ecosystem to support such a shift.
The CBN has not yet responded to the concerns raised by the industry. The outcome of this situation could have significant implications for Nigeria’s digital financial services sector.
