The Central Bank of Nigeria has issued operational guidelines for open banking in Nigeria.
Open banking is a financial concept that allows third-party financial service providers to access banking data using APIs with the customer’s explicit consent. This concept allows customers to share their banking data with other financial service providers, enabling them to access a broader range of products and services.
The Central Bank of Nigeria, through its director of the payment services management department, Musa Jimoh, issued a memo stating that the guidelines aim to promote stability in the country’s financial system.
The guidelines require the CBN to create and manage an Open Banking Registry that will oversee participants in the open banking ecosystem, improve transparency, and regulate operators.
In addition, the guidelines provide a framework for Consent Management, which requires customers to give explicit consent before their data can be used for open banking products and services and other purposes.
The adoption of open banking in Nigeria will foster the sharing of customer-permissioned data between banks and third-party firms to enable the building of customer-focused products and services. It also aims to enhance efficiency, competition, and access to financial services.Musa Jimoh – Director of the Payment Services Management Department
Mr Jimoh highlighted the significance of strictly adhering to the guidelines and regulations to advance innovation and broaden the array of financial products and services offered to customers. He urged all stakeholders to prioritize compliance to guarantee the triumph of the open banking system.
Moreover, he pointed out that the guidelines specifically focus on banking and related financial services, as designated and categorized by the apex bank under the regulatory framework for open banking in Nigeria.