Nigeria Becomes First African Country to Launch Open Banking, Set for Full Rollout by August 2025

In a landmark decision, the Central Bank of Nigeria (CBN) has approved the full implementation of open banking, positioning Nigeria as the first country in Africa to adopt the transformative financial data-sharing framework. Beginning in August 2025, Nigerian banks will be mandated to securely share customer data—such as transaction histories and account balances—with other licensed financial institutions, provided customers give explicit consent.

The decision comes four years after the CBN released its initial regulatory framework for open banking. With the system now greenlit for rollout, open banking is set to redefine how Nigerians access financial services, opening the door for innovative offerings, particularly in the underdeveloped credit sector.

Under this model, banks and fintechs will interconnect through a standardized Application Programming Interface (API), which will allow for seamless and secure data sharing. A centralized registry will authenticate and list participating entities, while a robust consent management framework—linked to customers’ Bank Verification Numbers (BVNs)—will ensure that users retain full control over who accesses their financial data and for what purposes.

The CBN adjusted its implementation strategy following initial resistance from the banking industry, particularly concerning the centralization of control under the Nigerian Interbank Settlement System (NIBSS). In response, the apex bank has delegated oversight to independent industry-led committees composed of bankers and representatives from financial institutions, without direct CBN influence, promoting transparency and trust within the ecosystem.

The implications of this shift are substantial. With access to granular customer data from Nigeria’s 120 million bank accounts, financial institutions can build tailored services, particularly in the credit space. Historically, Nigeria has suffered from low credit penetration—about 70% of account holders are unable to access formal credit. Fintechs have tried to fill the gap, but their limited access to data has often led to subprime lending and aggressive recovery practices.

Open banking is poised to change that. Lenders will be able to assess creditworthiness based on actual financial behavior, including transaction history and consumption patterns, laying the groundwork for a functional credit scoring system. This could greatly expand access to safe, structured credit and encourage responsible lending.

Beyond credit, open banking opens possibilities for hyper-personalized financial services—savings plans, insurance products, investment offerings—all tailored to individual behaviors and needs.

As Nigeria steps into this new era of financial openness, stakeholders across the ecosystem are being called upon to prioritize customer privacy, strengthen cybersecurity, and build the trust necessary for the system to thrive.

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