State of open banking in Nigeria 2025

Key observations

• In February 2021, the Central Bank of Nigeria published a Regulatory Framework defining common API standards, consent management, and tiered access roles for API providers and consumers

• In March 2023, updated Operational Guidelines reinforced security requirements, customer experience standards, and introduced a public Open Banking Registry (OBR) managed by the CBN

• In April–May 2025, the CBN formally approved the open banking rollout, scheduling live operations for August 1, 2025—making Nigeria the first African nation to implement open banking
  

Nigeria's Open Banking Revolution: What to Expect in 2025

Nigeria is on the verge of a major transformation in its financial services landscape. With the Central Bank of Nigeria (CBN) formally approving the operational rollout of open banking, the country is set to become the first in Africa to implement a regulated open banking framework. The go-live date is scheduled for August 1, 2025, and expectations are high for what this shift will mean for consumers, banks, fintechs, and the broader economy.

Setting the Stage: Regulatory Momentum

The journey toward open banking in Nigeria has been in motion for several years. It began with the release of the regulatory framework in February 2021, which laid the foundation for secure, interoperable APIs (Application Programming Interfaces) that allow financial data to be shared with customer consent. In 2023, the CBN took a significant step forward by issuing detailed operational guidelines. These guidelines defined data access tiers, API standards, security protocols, and introduced a centralized Open Banking Registry (OBR).

This registry will serve as a public listing of all regulated participants in the ecosystem, including commercial banks, fintech providers, and other third parties. It’s a crucial piece of infrastructure that aims to enhance transparency, foster trust, and ensure regulatory oversight.

Governance: A Unique Model

One of the distinguishing features of Nigeria's open banking initiative is its governance structure. Unlike many other countries where centralized financial authorities control the technical standards, Nigeria’s implementation is supported by an independent industry body—Open Banking Nigeria—which coordinates with the CBN. This collaborative model brings together banks, fintechs, and regulators to jointly develop and maintain the API standards and compliance protocols.

This approach is designed to foster innovation while maintaining regulatory discipline. It also ensures that the evolving needs of ecosystem participants are reflected in future updates to the framework.

How It Works: Consent-Driven Data Sharing

Open banking in Nigeria is based on customer consent. Users must explicitly allow third parties to access their financial data—whether that’s transaction history, balances, or identity verification—through APIs. This data can then be used to offer personalized financial services, build credit profiles, automate budgeting, or initiate payments directly from bank accounts.

Security and privacy are built into the framework, with strong encryption standards (like OAuth2 etc.), message signing, and tiered access levels that limit exposure of sensitive data unless fully authorized.

The Use Cases: From Lending to Financial Inclusion

The most immediate impact of open banking will be seen in lending. Fintech lenders often struggle to assess creditworthiness in Nigeria due to the lack of formal credit histories for millions of individuals. With access to real-time transaction data and income patterns, these lenders can now build more accurate credit models and extend financing to underserved populations.

Payments are another major use case. Through open banking, users will be able to authorize payments directly from their bank accounts without needing to use cards or remember account numbers. This can significantly reduce transaction costs for merchants and simplify the payment experience for users.

Other promising applications include:

• Identity verification and eKYC processes for banks and fintech apps

• Account aggregation to give users a single view of all their bank accounts

• Financial planning tools that automatically categorize and analyze spending

• Agency banking enhancements, especially in rural or informal settings
  

Technical Foundations

Nigeria’s open banking system will operate on modern technology standards. RESTful APIs with JSON payloads ensure simplicity and interoperability. The framework also draws from global best practices, including ISO 20022 for financial messaging and versioned APIs to allow for long-term scalability.

Security is a key focus. All APIs will require strong authentication and authorization, with full audit trails and monitoring tools integrated into the architecture. This aligns with Nigeria’s data protection regulations, particularly the NDPR (Nigeria Data Protection Regulation), which outlines consent, retention, and breach protocols.

The Big Players

Nigeria’s large digital finance players are expected to be early adopters. Companies like PalmPay, which already boasts over 35 million users, are well-positioned to capitalize on open banking to expand into embedded credit, insurance, and more. Payment providers, digital banks, and even telecoms may look to embed financial services into their platforms using standardized APIs.

Startups in the data aggregation and API space—like Mono, Okra, and OnePipe—have already begun building infrastructure to connect to bank APIs. With the regulatory green light, their platforms will be critical for enabling secure, scalable connections between banks and third-party apps.

Looking Ahead: Opportunities and Challenges

The rollout of open banking in Nigeria opens up massive opportunities. With over 120 million bank accounts and a high mobile penetration rate, the infrastructure is already in place to make digital finance truly inclusive.

However, challenges remain. Consumer awareness is low, and many users may be hesitant to grant access to their financial data. Banks may also be reluctant to expose APIs without clear commercial incentives. There’s also the ongoing need to balance innovation with security, especially in an environment where fraud risks remain high.

But the overall direction is clear: Nigeria is not just following global open banking trends—it’s actively shaping them. The emphasis on shared governance, clear standards, and local innovation puts Nigeria in a unique position to lead Africa’s financial transformation.

Final Thoughts

August 2025 marks more than just a regulatory deadline—it signals a fundamental shift in how Nigerians will interact with their money. Open banking can empower consumers, level the playing field for fintechs, and give banks new channels for growth.

If implemented effectively, Nigeria’s open banking framework could become a model for other emerging markets looking to modernize their financial ecosystems. It’s a bold step forward—and one that could redefine digital finance across the continent.