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The Central Bank of Nigeria (CBN) has reaffirmed the country’s position as a global leader in instant payments, citing the sophistication of its payment infrastructure and progressive regulatory reforms.
Speaking at the Q2 FintechNGR Regulators’ Forum Webinar, themed “Beyond Compliance: Unlocking Innovation with Nigeria’s Open Banking Framework,” CBN’s Director of Payment System Policy, Musa Jimoh, highlighted that Nigeria’s instant payment ecosystem stands among the most developed globally, powered by real-time processing capabilities and a dynamic fintech landscape.
“Our payments happen within seconds — and that’s a significant milestone for Nigeria as a country,” Jimoh stated.
Driving Innovation Through Open Banking
Jimoh described Nigeria’s evolving payments architecture as a product of long-term strategic planning, innovation, and regulatory foresight. He noted that the implementation of open banking is a key enabler of innovation, customer-centric services, and financial inclusion.
“Open banking fosters competition and creativity in the financial sector while enhancing customer experience and deepening inclusion,” he added.
To support this evolution, the CBN has issued comprehensive guidelines on open banking and launched a regulatory sandbox to enable controlled experimentation with innovative financial products.
A Journey of Systemic Transformation
Recounting the sector’s progress, Jimoh traced Nigeria’s payment system development to the 2006 inauguration of the Payment System Vision, which laid the groundwork for the country’s digital finance future. Milestones such as the 2010 transition to EMV chip-and-PIN cards, mobile money operations, and the adoption of biometric verification through the Bank Verification Number (BVN) have all contributed to the maturity of the ecosystem.
“Today, Nigeria has granted over 160 financial services licences, reflecting the diversity and depth of the ecosystem,” he noted.
Significant infrastructure investments by banks and payment switch providers have also supported the system’s capacity to handle growing transaction volumes with speed and reliability.
Unlocking the Value of Data Through Open Access
Jimoh emphasized that financial institutions in Nigeria possess vast repositories of customer data that remain underutilised due to fragmentation across platforms. Through open banking, this data — with customer consent — can be securely accessed by licensed developers to create tailored financial solutions.
“The data must be permissioned. The customer must consent before any usage,” he stressed.
Open banking, he added, will not only promote healthy competition among service providers but also drive cost reduction and service innovation across the board.
Addressing Implementation Challenges
While the potential of open banking is vast, Jimoh acknowledged challenges such as API standardisation and cybersecurity. The CBN has activated dedicated workstreams to address these issues and ensure a smooth nationwide rollout.
“Our aim is to create an open, inclusive, and innovative financial ecosystem that supports national economic resilience,” he said.
Jimoh concluded by reaffirming the CBN’s commitment to collaborating with stakeholders to build a future-ready financial services industry grounded in trust, innovation, and inclusion.
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