Christine Kagendo 
Central Bank of Nigeria(CBN)
Nigeria is set to become the first African country to officially implement open banking, with the Central Bank of Nigeria (CBN) approving a nationwide rollout from August 1, 2025.
The move will enables customers to allow regulated financial institutions to access their personal banking data that includes balances, transaction histories, and spending habits via standardised APIs.
The initiative is expected to unlock new lending models and drive financial innovation by offering financial institutions deeper insights into creditworthiness.
“The system, overseen by independent committees rather than the CBN directly, includes a central registry to authenticate participants and a consent framework linked to customers’ Bank Verification Numbers (BVNs),” read part of the statement.
Though open banking penetration remains low globally—at just 14% in the UK—Nigeria’s move is seen as a regional milestone with learnings for other African markets.
The change comes amid calls to enhance lending to SMEs and underbanked individuals, which traditional Nigerian banks have historically neglected.
Fintechs like Flutterwave and Paystack are expected to benefit from the framework, using verified data to create targeted products and potentially improve credit scoring.
However, experts note that neobanks such as Moniepoint and Fairmoney are already growing without open banking, and the impact may be more evolutionary than revolutionary.
The regulatory sandbox will help test new applications, but real market shifts will depend on adoption by both banks and consumers.
Nigeria’s formal adoption of open banking is a defining moment for Africa’s digital financial services landscape, signaling a shift from fragmented data silos toward interoperable, consent-driven ecosystems.
Other African countries, particularly South Africa, Egypt, and Kenya, will be closely monitoring this development.
“Open banking has the potential to speed up pan-African financial integration, redefine competition between incumbents and fintechs, and open up new lending channels for MSMEs,” read part of the statement.
Nigeria may set the standard for the rest of the continent in the future, where data portability, customer consent, and transparency will drive the next wave of financial inclusion.
