Nearly a month after Nigeria’s open banking framework was scheduled to go live, uncertainty surrounds its rollout. Reports had suggested that August 1 would mark the official launch, yet the Central Bank of Nigeria (CBN), which is responsible for overseeing the initiative, has provided no confirmation or denial. The silence has raised concerns among stakeholders who believe that open banking could reshape the country’s financial services landscape, much like the Bank Verification Number (BVN) or the cashless policy did in previous years. Many fear that delays will not only slow momentum but also allow other markets to take the lead in defining financial innovation across Africa.
The push for open banking in Nigeria began years earlier when a group of industry professionals created Open Banking Nigeria, a non-profit dedicated to building shared standards for financial data exchange. Their objective was to create a framework where banks, fintechs, and third-party providers could securely share data to build innovative products. Over time, their efforts gained traction with leading banks and fintechs, eventually prompting the CBN to issue operational guidelines in 2023. However, since then, progress has stalled. With the August launch date missed, there is still no clarity on when open banking will formally begin, leaving entrepreneurs and investors in limbo.
Industry observers point to bureaucratic bottlenecks as the major reason for the delay rather than technical challenges. Some suggest there is a misalignment between the priorities of the CBN Governor and the teams tasked with execution, a dynamic that has affected other projects as well. The eNaira initiative, once marketed as a key financial innovation, faced muted adoption due to limited enthusiasm and poor market readiness. This has led to a perception that CBN, once regarded as a champion of financial innovation, is struggling to maintain its earlier reputation. Meanwhile, banks have been making their own preparations. Several major institutions, including Wema Bank, Providus Bank, and Sterling Bank, have already developed APIs and built fintech partnerships that allow them to serve broader customer segments. But with each bank creating its own technical standards, the lack of regulatory coordination has fragmented the ecosystem, limiting scalability and slowing progress.
Globally, the experience with open banking demonstrates its potential. In the UK, open banking was mandated in 2018 and today powers budgeting apps, credit scoring platforms, and tailored lending solutions, with nearly three-quarters of businesses engaged in the system. Brazil took a phased approach starting in 2021, expanding into open finance within two years, which has included sectors such as pensions, insurance, and investments. Both markets illustrate how consistent policy enforcement can accelerate innovation, enhance consumer choice, and compel traditional banks to adapt. Nigeria, however, risks losing its momentum due to regulatory inertia rather than lack of talent or infrastructure.
For over a decade, Nigeria’s financial services industry has earned recognition as one of Africa’s most innovative, driving projects like the Nigeria Inter-Bank Settlement System (NIBSS) and advancing mobile money adoption through operators such as OPay and PalmPay. Many stakeholders believe open banking has the same potential to transform financial services, improve consumer protection, and unlock new competition by allowing individuals to control and share their financial data securely. With better enforcement, clear communication, and timelines from CBN, Nigeria could still position itself at the forefront of open banking on the continent. For now, however, the continued silence risks turning what could have been a landmark reform into another case of missed opportunity.
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