Nigeria’s central bank has announced plans to accelerate the rollout of open banking and pursue regulatory passporting arrangements with other African countries, in a move aimed at unlocking fintech growth and supporting the regional expansion of local firms.
The Central Bank of Nigeria (CBN) disclosed the plans in its newly released Fintech Report 2025, stating that a detailed implementation roadmap for open banking will be issued within the next three months.
Open banking enables banks and licensed third-party providers to securely share customer data through application programming interfaces (APIs), allowing the development of new digital products, improved competition, and broader access to financial services. Although Nigeria introduced an open banking framework in 2021 and issued operational guidelines in 2023, adoption has remained slow due to unresolved technical and governance challenges.
The CBN said it is now prioritising the rollout of technical standards, governance frameworks, and dispute-resolution mechanisms required for full implementation. These efforts will be complemented by consumer awareness and financial education initiatives aimed at building trust in open banking systems.
The renewed push reflects rising demand within the fintech ecosystem. An industry survey cited in the report showed that 25 percent of fintech executives consider open banking APIs the most critical digital infrastructure for future growth.
Alongside open banking reforms, the CBN revealed it is developing a Regulatory Passporting Programme to support Nigerian fintech firms seeking to expand across Africa. According to the report, 62.5 percent of fintech companies in Nigeria are planning regional expansion, prompting the regulator to explore mutual licence recognition agreements.
The central bank said it will initiate bilateral consultations with regulators in Ghana, Kenya, and Senegal to reduce duplicative compliance requirements and ease market entry for Nigerian fintechs operating across borders.
As part of its phased reform agenda, the CBN outlined immediate actions over the next three months, including the creation of a CBN-led fintech engagement forum, issuance of the open banking implementation roadmap, and commencement of technical scoping for a single regulatory window and smart licensing gateway.
Additional reforms expected within nine months include the launch of a new regulatory sandbox focused on artificial intelligence and regulatory technology, guidance on data portability and consumer protection under open finance, and the operationalisation of a fintech credit guarantee scheme in partnership with development finance institutions.
The report also highlighted a shift in the CBN’s approach to inclusive credit delivery. Rather than expanding payment service bank mandates, the regulator plans to authorise dedicated digital banking licences as a more scalable way to serve underserved populations.
The CBN noted that artificial intelligence is increasingly central to fintech risk management, with 87.5 percent of firms currently using AI primarily for fraud detection, amid persistent concerns about digital financial crime.
