The House of Representatives is considering a bill that could impose a minimum fine of ₦500 million and up to 10 years in prison on anyone who transfers Nigeria’s strategic payment transaction data outside the country without regulatory approval.
The proposed legislation, sponsored by Lanre Okunlola, representing Surulere II Federal Constituency of Lagos State, seeks to strengthen Nigeria’s control over financial information and protect sensitive payment data from potential cybersecurity threats.
Titled *A Bill for an Act to Establish the National Payment Data Protection and Sovereignty Commission*, the bill also proposes the creation of a new commission to oversee the protection, regulation and management of payment transaction data generated within Nigeria.
Under Section 23 of the proposed legislation, anyone found guilty of transferring payment data outside the country without authorisation could face imprisonment for up to 10 years, a fine of not less than ₦500 million, or both.
The bill also seeks to compel banks, fintech companies, payment service providers, switching companies and other financial institutions to store their primary payment data infrastructure within Nigeria.
Under Section 22, institutions that fail to comply with the proposed local data storage requirements could face a minimum fine of ₦1 billion, alongside additional daily penalties for continued violations.
The proposed law further classifies payment transaction data generated in Nigeria as a strategic national economic and security asset.
However, it recognises the need for international financial transactions, allowing cross-border transfers under specific conditions, including regulatory approval and adequate security safeguards.
The bill, which was introduced during a plenary session of the House last week, is expected to undergo further legislative consideration.
It has not yet become law.
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