Open Banking Nigeria. Photo | courtesy.
Nigeria is set to officially become the first African country to implement open banking following the Central Bank of Nigeria’s (CBN) approval for a nationwide rollout starting August 1, 2025.
The open banking initiative will allow customers to authorize regulated financial institutions to access their personal financial data, including account balances, transaction histories, and spending habits, through standardized Application Programming Interfaces (APIs).
The system aims to improve credit access, unlock new lending models, and drive innovation by enabling banks and fintechs to gain a fuller picture of users’ financial behaviour.
Oversight of the system will be managed by independent industry committees instead of the CBN. A central registry will authenticate players, while customer consent will be linked to their Bank Verification Numbers (BVNs).
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CBN Director of Payment Systems, Musa Jimoh, said the launch represents a major milestone for Africa’s financial sector.
“This framework will redefine how financial services are delivered in Nigeria. We are not just enabling data sharing we are enabling trust, inclusion, and innovation,” said Jimoh.
Nigeria’s open banking journey began in 2021 when the CBN released the regulatory framework. However, concerns from industry players over centralization and data security delayed the implementation.
To address the concerns, the CBN allowed for self-regulation under licensed industry committees to safeguard transparency and interoperability.
The move comes amid increased pressure to improve credit access to underbanked communities and small businesses that have historically been left out by traditional lenders.
Fintechs such as Flutterwave and Paystack are expected to benefit from the changes, using verified data to design more personalized financial products.
“Access to real-time, customer-consented data will significantly change how we assess risk and deliver credit,” said Flutterwave CEO Olugbenga Agboola. “This gives us the opportunity to serve those previously ignored by the system.”
Still, experts say the market response may be gradual. Neobanks like Moniepoint and Fairmoney have already grown without open banking frameworks.
The CBN has indicated that a regulatory sandbox will continue to be used to test new applications under the open banking framework.
