Reps propose N500m fine for illegal data transfers
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Punch Newspaper
Reported by Dirisu Yakubu
Sun, 1 Nov 2026, 23:38
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Source Attribution: Punch Newspaper
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File: House of Representatives A bill before the House of Representatives has proposed a 10-year prison term and a minimum fine of N500m for anyone who transfers strategic payment transaction data outside Nigeria without regulatory authorisation. The bill also seeks to prohibit regulated institutions from hosting their primary payment transaction data abroad, except with the approval of the proposed Commission in conjunction with the Central Bank of Nigeria.
Context & Background
✦The proposed legislation, exclusively obtained by The PUNCH, also seeks to compel banks, financial technology companies, payment service providers and other financial institutions to store their primary payment data infrastructure within Nigeria, with a minimum fine of N1bn for institutions that violate the requirement.
Key Figures & Named Entities
last week:Titled, ‘A Bill for an Act to Establish the National Payment Data Protection and Sovereignty Commission,’ the proposed legislation is designed to strengthen Nigeria’s control over its financial information infrastructure, “address cybersecurity threats and reduce dependence on offshore payment data storage and processing facilities.” Introduced during a plenary session last week, the bill is now expected to be debated in the coming weeks by lawmakers.₦500,000,000:It states that “any person who transfers payment data outside Nigeria without authorisation commits an offence and shall be liable upon conviction to imprisonment for a term not exceeding ten years, a fine not less than ₦500,000,000 or both.” Similarly, Section 22 prescribes a minimum fine of N1bn for any institution that fails to comply with the proposed data localisation requirements, in addition to daily penalties for continuing violations.
Outlook & Next Steps
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Key Takeaways
Verified Extract
✦File: House of Representatives A bill before the House of Representatives has proposed a 10-year prison term and a minimum fine of N500m for anyone who transfers strategic payment transaction data outside Nigeria without regulatory authorisation.
✦The bill also seeks to prohibit regulated institutions from hosting their primary payment transaction data abroad, except with the approval of the proposed Commission in conjunction with the Central Bank of Nigeria.
✦The proposed legislation, exclusively obtained by The PUNCH, also seeks to compel banks, financial technology companies, payment service providers and other financial institutions to store their primary payment data infrastructure within Nigeria, with a minimum fine of N1bn for institutions that violate the requirement.
Key Facts:last week: Titled, ‘A Bill for an Act to Establish the National Payment Data Protection and Sovereignty Commission,’ the proposed legislation is designed to strengthen Nigeria’s control over its financial information infrastructure, “address cybersecurity threats and reduce dependence on offshore payment data storage and processing facilities.” Introduced during a plenary session last week, the bill is now expected to be debated in the coming weeks by lawmakers.₦500,000,000: It states that “any person who transfers payment data outside Nigeria without authorisation commits an offence and shall be liable upon conviction to imprisonment for a term not exceeding ten years, a fine not less than ₦500,000,000 or both.” Similarly, Section 22 prescribes a minimum fine of N1bn for any institution that fails to comply with the proposed data localisation requirements, in addition to daily penalties for continuing violations.
Editorial Excerpt
A bill before the House of Representatives has proposed a 10-year prison term and a minimum fine of N500m for anyone who transfers strategic payment
Frequently Asked Questions About This Story
What is the latest development regarding National Assembly of Nigeria?
File: House of Representatives A bill before the House of Representatives has proposed a 10-year prison term and a minimum fine of N500m for anyone who transfers strategic payment transaction data outside Nigeria without regulatory authorisation.
Who are the key organizations or public figures mentioned?
The bill also seeks to prohibit regulated institutions from hosting their primary payment transaction data abroad, except with the approval of the proposed Commission in conjunction with the Central Bank of Nigeria.
What timeline or key figures were confirmed?
Titled, ‘A Bill for an Act to Establish the National Payment Data Protection and Sovereignty Commission,’ the proposed legislation is designed to strengthen Nigeria’s control over its financial information infrastructure, “address cybersecurity threats and reduce dependence on offshore payment data storage and processing facilities.” Introduced during a plenary session last week, the bill is now expected to be debated in the coming weeks by lawmakers.
