Nigeria to Launch Open Banking in August 2025

Nigeria’s Central Bank (CBN) has approved the rollout of open banking, a groundbreaking initiative that will require banks to share customer data, which has been historically guarded for decades, with other regulated financial institutions, to go into effect starting August 1, 2025.

This move stems from years of advocacy. Since 2017, the Open Banking Initiative, a nonprofit backed by Open Technology Nigeria and led by Adedeji Olowe, has pushed for data transparency in the banking sector. The initiative boasts an impressive list of members, including FCMB, Fidelity Bank, KPMG, Paystack, EY, OnePipe, Lendsqr, PWC, and Flutterwave.

What Is Open Banking?

At its core, open banking establishes a unified API standard across financial institutions, allowing all banks to “speak the same language.” This standardised API enables secure, consistent, and regulated access to customer data across participating entities. A central registry will manage participant authentication, while a consent management system, linked to customers’ Bank Verification Numbers (BVNs), ensures customers control who can access their data. With CBN’s approval, Nigerians will now be able to share information like account balances, transaction histories, and spending patterns with third parties. In some cases, these third parties can even initiate transactions on their behalf with consent.

Before now, card details enable shopping online, with open banking, all you need to do is log in to your bank account, authorize the payment directly, and you’re done.

For accessing loans, you don’t have to start with N10K or N20K starter loans to assess your creditworthiness. With open banking, your credit history becomes open, and your creditworthiness is assessed using that. 

 What Will Implementation Look Like?

Nigeria is set to become the first African country to roll out open banking, marking a major milestone four years after the Central Bank of Nigeria (CBN) first introduced a regulatory framework. While the initial plan placed oversight in the hands of the Nigerian Interbank Settlement System (NIBSS), industry resistance prompted a shift. Implementation will now be guided by independent, industry-led committees without any CBN representatives in leadership roles.

Under the new system, customers can authorize banks, fintechs, and other licensed institutions to access their account balances, transaction history, and even initiate transactions on their behalf. This data exchange will occur through a standardized API used across all banks, with access restricted to CBN-licensed and supervised entities. A centralized registry will list all ecosystem participants, while a consent management system linked to customers’ Bank Verification Numbers (BVNs) will ensure transparency and control over data sharing.

 Why Does It Matter?

Open banking promises a seismic shift in how Nigerians interact with financial services. With access to structured data on over 120 million bank customers, financial institutions can offer smarter, more personalised services.

Lending stands to gain the most benefit. Traditional banks have failed to scale accessible credit, leaving around 70% of account holders underserved. Fintechs have stepped in but often rely on limited data, resulting in either risky loans or predatory tactics.

Open banking changes that. Lenders will gain access to richer data like income patterns and spending behaviour, enabling better credit assessments and the development of Nigeria’s first robust credit scoring systems. It also opens doors to more personalised financial products tailored to individual needs.

Startups like Mono, OnePipe, and others already operating in the banking data space are set to thrive in this newly open ecosystem.