The House of Representatives is considering a bill that proposes up to 10 years in prison for unauthorised offshore transfers of Nigeria’s payment data.
The proposed legislation also recommends a minimum fine of ₦500 million for offenders. It seeks to strengthen local control over financial information and protect payment systems.
Bill Targets Banks And Fintech Companies
Sponsored by Lanre Okunlola, representing Surulere II Federal Constituency of Lagos State, the bill seeks to establish the National Payment Data Protection and Sovereignty Commission.
Under Section 23, individuals who transfer strategic payment data abroad without approval could face up to 10 years’ imprisonment. They could also pay a minimum fine of ₦500 million or face both penalties upon conviction.
Section 22 proposes a minimum fine of ₦1 billion for financial institutions that fail to meet local data storage requirements. Continued violations would attract additional daily penalties.
Payment Data Must Remain In Nigeria
The proposed law covers banks, fintech companies, payment service providers, switching companies and settlement operators.
Section 9 requires these institutions to store payment transaction data within Nigeria. Section 10 also requires domestic transactions to pass through infrastructure physically located in the country.
However, the proposal allows approved cross-border data transfers. Section 19 outlines conditions, including international settlement obligations, national security safeguards and Central Bank of Nigeria approval.
Bill Awaits Further Legislative Consideration
The proposed legislation also seeks to classify payment transaction infrastructure as Critical National Information Infrastructure.
The proposed commission would establish cybersecurity and operational resilience standards. It would also oversee compliance with the country’s payment data protection requirements.
The bill was introduced during a plenary session in October 2026. Lawmakers are expected to consider it in the coming weeks. It has not yet become law.
