When Okra and Mono burst onto Nigeria’s fintech scene a few years ago, they were doing something bold: giving apps and businesses a way to access bank data (with customer permission) through APIs. At the time, there was no official “open banking” policy in Nigeria.

This meant they had to figure things out from scratch, building one-on-one integrations with banks, navigating different technical systems, and making sure they stayed within general privacy rule, especially the Nigeria Data Protection Regulation (NDPR). 

It worked, but it was fragmented, inconsistent, and hard to scale.

Fast forward to today, and Nigeria is about to make it official. On April 29, 2025, the Central Bank of Nigeria (CBN) announced that the country’s open banking system will launch in August 2025, making Nigeria the first African country to roll out open banking at a national level.

What Exactly Is Open Banking?

Open Banking is a system where you, as a bank customer, can give licensed third-party providers (like fintechs, budgeting apps, or payment platforms) permission to securely access your bank data through standardized APIs.

You control your data, who can see it, for what purpose, and for how long.

With your permission, apps can use this data to give you better services such as instant loan approvals, account aggregation, personal finance tools, and faster payments.

Why This Matters for Nigerians

1. Better credit access: Lenders can see your real transaction history instead of just asking for salary slips.

2. Faster onboarding: Less paperwork when signing up for financial services.

3. Inclusion: People with informal or irregular incomes can prove their financial activity.

4. Healthy competition: Startups can create innovative products that “sit on top” of bank data.

5. More secure connections: One standard API for everyone instead of dozens of custom hacks.

How the Policy Is Structured

The CBN has been building this for years:

1. Regulatory Framework (2021): Set the big-picture objectives, scope, and who can participate.

2. Operational Guidelines (2023): These are the detailed rules: security requirements, consent management, API standards, and the creation of a central registry.

The Players and the System

1. The Central Bank of Nigeria (CBN) is the chief regulator. It sets the rules for open banking, issues licenses or authorizations, and enforces compliance. In the CBN Operational Guidelines, the CBN is described as “the primary supervisory authority” responsible for ensuring all participants act within the law and in a way that protects consumers and financial stability.

2. The Nigeria Inter-Bank Settlement System (NIBSS) is the technical backbone for certain open banking operations. It manages two central systems:

a. The Open Banking Registry (OBR): This is the official database of all authorized open banking participants. If a company’s name is not listed in the OBR, it is not recognized as a legitimate provider under CBN rules. The guidelines describe the OBR as the “single source of truth” for participant identity and status.

b. The Open Banking Consent Management System (OBCMS): This is a centralized platform that records, tracks, and stores customer permissions for data sharing. It ensures there is an auditable history of when consent was given, what it covers, and whether it has been revoked.

How Data Access Will Work

The CBN framework does not treat all data equally, it classifies data into four tiers, each with different regulatory and security requirements.

• Low-risk data (PIST: Product Information and Service Touchpoints)

This includes publicly available information such as ATM locations, branch addresses, product features, interest rates, and fees. Because it poses minimal privacy risk, any licensed participant can request or share it without complex security layers, though they must still comply with API standards.

• Moderate-risk data (MIT: Market Insight Transactions)

This covers aggregated, non-personal data such as industry trends or anonymized statistics. While it doesn’t identify specific customers, it is still regulated to prevent misuse or competitive harm.

• High-risk data (PIFT: Personal Information and Financial Transactions)

This is highly sensitive and includes personally identifiable information such as names, account details, and transaction history. Access to this tier requires higher licensing, stronger security protocols, and explicit customer consent.

• High & sensitive derived data (PAST: Profile, Analytics, Scoring and Transactions)

This is the most protected category and includes data derived from analysis, such as credit scores, behavioral profiles, and risk ratings. Access is only granted to the highest-tier license holders with strict technical, legal, and operational safeguards.

The rule is simple: the more sensitive the data, the stricter the licensing and security requirements. This is stated in Section 6 of the CBN guidelines, which mandates proportional safeguards depending on the data classification.

Key Regulatory Rules for All Participants

The CBN has set down universal obligations in the Open Banking Guidelines:

• Consent must be explicit, informed, and revocable: Section 7 states that consent must be given in clear terms and documented before any data sharing occurs. Customers must also have the right to withdraw consent at any time through the same channels they used to grant it.

• Data use must be purpose-specific: Section 8 prohibits using customer data for purposes outside of what was agreed at the point of consent.

• Participants must meet technical and security standards: Section 9 requires compliance with the national API standard, data encryption protocols, and cybersecurity measures in line with the Nigeria Data Protection Regulation (NDPR).

• The OBR as the single source of truth: Any entity not listed in the Open Banking Registry is considered unauthorized. Providing data access to an unlisted entity is a breach of the regulations.

Risks and Safeguards

The framework identifies three major risk areas:

• Data breaches: The guidelines require end-to-end encryption, continuous monitoring, and mandatory incident reporting to both the CBN and the Nigeria Data Protection Bureau.

• Central system risks: Because the OBCMS is a single point of control for customer consent, it is considered critical infrastructure. The regulations require high availability, redundancy, and disaster recovery plans.

• Consumer trust: The CBN stresses that customers must clearly understand what they are consenting to. It also requires that dispute resolution mechanisms be simple, free, and quick, in line with the CBN Consumer Protection Framework.

What Banks, Fintechs, and Consumers Should Be Doing Now

For banks, the priority is to upgrade their APIs to match the national open banking standard, develop internal systems to manage and track consent, and ensure they are fully registered on the OBR. They should also review and update their cybersecurity measures to match CBN’s tier-based requirements.

For fintechs, the focus should be on meeting the specific licensing tier required for the type of data they intend to access. They must integrate their APIs securely, pass CBN’s security audits, and formalize data-sharing agreements with participating banks.

For consumers, the safest approach is to only approve access requests from companies listed in the OBR. Before granting consent, they should read the terms carefully and ensure they understand exactly what data will be shared and for what purpose. If a service is no longer used, they should revoke access immediately via the OBCMS or the service provider’s platform.

When the rollout begins, the rails will be in place for faster, safer, and more inclusive financial services. The real test will be how quickly banks, fintechs, and consumers adopt it and whether Nigeria can set a model for other African countries to follow.