Nigeria Makes a Bold Move to Adopt Open Banking Rules, Becoming the First State in Africa
The decision, which the Central Bank of Nigeria authorized on March 7, 2023, will influence the banking sector and inspire fresh kinds of competition. Open banking has created thrilling new opportunities for fintech innovation. Through this practice, banks can share client data with independent service providers, such as fintechs and mobile money operators, who can use it to develop cutting-edge consumer-friendly solutions.
The rule will open the door for a more organized and interoperable financial system, enabling the creation of new financial applications with access to client data that will increase financial inclusion and offer specialized loans. When business professionals established Open Banking Nigeria in 2017, the idea for the open banking regulation in Nigeria was first put forth. The Central Bank of Nigeria (CBN) published a blueprint for open banking regulation in 2021. This prompted the establishment of an industry committee, which in 2022 produced the first draft of the open banking law. Financial institutions can use the rules to create new financial solutions while the CBN will set up a registry now that they are in place.
