Nigeria is set to become the first African country to implement open banking, following the Central Bank of Nigeria’s (CBN) approval for a nationwide rollout beginning August 2025. This landmark move will require banks to securely share customer data-such as account balances, transaction histories, and spending patterns-with other regulated financial institutions, but only with the customer’s explicit consent.
The open banking system will operate through standardized APIs, ensuring secure and consistent data access across all participating banks and fintechs. A central registry will authenticate participants, while a consent management framework tied to customers’ Bank Verification Numbers (BVNs) will give users full control over who accesses their data and for what purpose.
CBN revised its approach after industry pushback against centralizing control under the Nigerian Interbank Settlement System (NIBSS). Instead, independent committees made up of financial professionals will oversee the system, without direct CBN control.
Industry analysts say the new system could transform Nigeria’s financial landscape, especially lending. With access to richer customer data, lenders can better assess creditworthiness, potentially creating Nigeria’s first reliable credit scoring system and making credit more accessible to the country’s 120 million bank customers.
Banks and fintechs are now preparing to integrate with the new system, which is expected to drive innovation, improve financial inclusion, and offer consumers more personalized financial products in the years ahead.
Paystack launches new holding company
January 21, 2026
