By 
The Central Bank of Nigeria (CBN) has reaffirmed its commitment to launching the country’s open banking framework, clarifying that the system is not yet live despite earlier expectations of an August 2025 rollout. The regulator, however, assured stakeholders that steady progress is being made on key governance and technical components, including API standardisation and data security structures.
“Open banking hasn’t gone live yet,” said Chai Gang, Deputy Director at the CBN’s Payment Systems Policy Department. “We’ve put together a governance structure and are building a standardised API template. It will happen soon.”
Gang made the remarks during a panel discussion at Moonshot by TechCabal, where he joined Tunde Ogundipe, CEO of E-doc Online, to discuss the evolving state of open banking in Nigeria.
Although the CBN issued operational guidelines for open banking in March 2023, technical integration and regulatory harmonisation have slowed full deployment. Gang noted that while both the framework and operational guidelines are in place, the CBN remains cautious about ensuring proper data protection and consumer consent before going live.
“There are already guidelines and a framework for open banking in Nigeria,” Gang said. “But we must be careful about who has access to customers’ personal data.”
Building the Foundation for Open Banking
Open banking will allow licensed financial institutions and third-party providers to securely share customer-permitted data through Application Programming Interfaces (APIs). Once operational, it is expected to spur innovation in digital financial products, improve credit access, and enhance financial inclusion across sectors.
“One of the strongest foundations for open banking is customer consent,” Gang emphasised. “We are building an automated process to ensure customers know what data is used, for how long, and that they can revoke permission at any time.”
Driving Financial Inclusion Through Collaboration
Ogundipe highlighted that successful open banking requires collaboration and trust between banks, fintechs, and consumers.
“Open banking promotes financial inclusion and will serve as a foundation for SMEs to access credit, bringing more people into the financial services ecosystem,” he said.
With around 40 million small businesses in Nigeria lacking access to formal credit due to limited collateral or documentation, open banking could enable alternative credit scoring using verified financial data—unlocking capital for millions of underserved entrepreneurs.
Managing Data Privacy and Liability
Gang also addressed growing concerns around data security and liability in the event of breaches. According to him, accountability will depend on where and how data loss occurs.
“Liability lies with whoever loses the data,” Gang explained. “Data at rest or in flight must be protected, and whoever fails to do so bears responsibility.”
Licensed open banking operators will be held responsible for customer data in their custody, while unlicensed entitieswill only be allowed to handle anonymised, non-personal data.
Streamlining Integration and Reducing Friction
Ogundipe noted that open banking will simplify Nigeria’s currently fragmented financial infrastructure.
“Integrating with 27 banks means 27 different APIs—it’s a nightmare,” he said. “Open banking consolidates that into one API, one standard, one registry. It reduces fraud risk and saves months of integration work.”
The system will create a level playing field for fintech innovators, ensuring fair participation and efficient integration into the financial ecosystem.
Stablecoins and the Future of Open Finance
Gang also confirmed that the CBN is exploring how virtual assets, particularly stablecoins, could fit into Nigeria’s open finance landscape.
“We are not unaware that virtual assets, especially stablecoins, are being used in the country,” he said. “However, since most are dollar-denominated, we must carefully assess their impact on monetary policy.”
He added that the CBN is working closely with the Securities and Exchange Commission (SEC) and other regulators to develop a balanced approach that encourages innovation while maintaining financial stability.
A Cautious Path Forward
Nigeria’s open banking framework remains one of Africa’s most ambitious digital finance initiatives, but the CBN maintains that a phased and secure rollout is crucial to maintaining public trust.
“We are building the architecture carefully, step by step,” Gang said. “It’s not live yet—but it will happen soon.”
When launched, open banking is expected to redefine Nigeria’s financial ecosystem, fostering transparency, interoperability, and inclusion across the digital economy.
Comments