Nigeria is steadily moving from policy to practice in its open banking journey.
The Central Bank of Nigeria has committed to a nationwide go-live in 2025, signaling a shift from anticipation to execution.
While the initial release of the CBN’s regulatory framework in 2021 generated excitement, implementation took significantly longer than expected, and open banking still remains a theory.
However, momentum is growing, and key players in the financial ecosystem, including traditional banks and fintechs, are ready and have already invested heavily in the technology required to power open banking.
Stakeholders across the ecosystem remain optimistic as the CBN gives the final nod for implementation.
Meanwhile, efforts to raise awareness of open banking’s potential benefits continue, as stakeholders view open banking as a game-changer for financial inclusion, innovation, and customer-centric banking services in Nigeria.
Nigeria has adopted a regulatory-driven open banking model.
In 2021, the CBN issued the Regulatory Framework for Open Banking in Nigeria, providing the legal foundation for secure, standardized data sharing among financial institutions and licensed third-party providers.
The CBN’s Operational Guidelines followed shortly after in 2023, facilitating secure data sharing between banks and third-party providers (TPPs). This framework categorizes data and services into tiers with specific access requirements, promoting secure data sharing and enhancing the digital banking ecosystem.
These frameworks emphasize customer data protection and transparency, ensuring that the financial services sector remains competitive and innovative while safeguarding consumer rights.
The Central Bank of Nigeria (CBN) is the chief architect of the open banking ecosystem. Through regulation and oversight, the CBN ensures that;
APIs are standardized and secure,
Consent is respected and traceable,
Customer rights are protected, and
Financial inclusion remains a top priority.
The CBN’s involvement ensures that open banking aligns with the broader goals of technological innovation. The bank enforces compliance through its licensing and supervisory roles, ensuring that all participating entities adhere to the regulatory framework.
Nigeria’s open banking journey is spearheaded by a coalition of proactive industry stakeholders advocating for greater transparency in the financial industry.
The CBN oversees the regulatory framework for open banking in Nigeria, ensuring that the implementation of open banking is safe, secure, and efficient. As the main regulatory body, the CBN sets the rules and guidelines that other stakeholders follow. Learn more on the CBN’s role in Nigeria’s open banking journey here.
While the CBN oversees the entire regulatory framework, NIBSS is tasked with operationalizing the Open Banking Registry (OBR) and managing the Open Banking Consent Management System (OBCMS) on behalf of the industry. NIBSS is a shared-service e-payment infrastructure created by the CBN and Nigerian commercial banks to facilitate secure and efficient electronic payment systems. It plays a key role in ensuring that customer data is protected and that consent for data sharing is managed in line with the Nigeria Data Protection Regulation (NDPR).
Traditional banks play a significant role as API providers in Nigeria’s open banking ecosystem. These banks are key funders of the initiative, having invested heavily in the technology required to facilitate the adoption of open APIs. Through these APIs, they allow fintechs and other TPPs to access customer data (with consent) and offer new services to enhance the customer experience. Some worthy mentions include Sterling Bank, Sparkle Bank, and Wema Bank, who are participating actively in this innovation.
Leading fintech players such as Mono, OnePipe, and Lendsqr, stand as ardent advocates of open banking in Nigeria. These fintechs are eager to leverage open APIs provided by banks to develop tailored financial products and services. They focus on providing innovative solutions in areas such as personal finance management, credit, and payment processing, fostering competition and financial inclusion in the industry.
Open Technology Foundation, primarily known as Open Banking Nigeria, is a non-profit organization founded by a group of industry experts, with members cutting across 55+ banks, fintechs, and consulting firms. OBN has worked directly with the CBN and other regulators to drive industry advocacy, develop and document the API standards for open banking in Nigeria. They have also collaborated with prominent financial institutions to develop an open-source API gateway to streamline the adoption of open banking in Nigeria. In addition to these efforts, OBN promotes consumer education and open banking awareness through industry engagements and annual webinars.
The Committee of Banking Heads in Nigeria (CeBIH): A collaborative group of e-banking heads from various Nigerian banks, CeBIH promotes the adoption of digital banking services and works closely with regulators to ensure smooth integration of open banking across the financial ecosystem.
The West African Bankers Association (WABA): This regional body represents financial institutions across West Africa and advocates for standardized cross-border policies that support open banking and financial inclusion. WABA plays an instrumental role in aligning Nigeria’s open banking framework with broader regional goals for seamless financial services.
These stakeholders are pivotal to Nigeria’s open banking ecosystem, each playing their part in driving innovation, competition, and consumer protection.
Open Banking Nigeria (Open Technology Foundation) is a non-profit backed by a group of industry experts across banking, fintech, risk management, and more to drive and launch the open banking standard in Nigeria.
