Nigeria’s eagerly awaited open banking era remains stalled, with execution slipping past its planned launch timeline. The Central Bank of Nigeria (CBN) approved the formal rollout in April 2025, targeting August as the go-live date. Yet many industry stakeholders now question whether regulators will meet their own deadline. Analysts argue that friction between the CBN Governor’s vision and operational teams has bogged down the initiative more than technical hurdles
Innovation at Risk Under Current Leadership Dynamics
One insider observes that financial innovation once thrived under the CBN, but frustration is growing. Recent initiatives like the eNaira, failed to gain traction largely due to ambiguous policy direction and public hesitation. That lackluster response strains open banking plans, which now suffer from inconsistent priorities and sluggish execution.
Banks Stand Ready But Fragmentation Persists
Despite the delays, commercial banks appear technically prepared. Institutions like Wema, Providus, and Sterling already offer APIs and derive meaningful digital revenue. Yet the lack of standardized protocols complicates integration, slowing the adoption curve. Many banks could support open banking within months provided the CBN enforces clear standards and deadlines.
Cybersecurity Remains a Top Priority
As open banking inches forward, cybersecurity risks top regulators’ concerns. The Director of Payments System Policy at the CBN, Musa Jimoh, recently urged banks and fintechs to build “airtight” systems. He highlighted the need for strong privacy protections and user education to prevent fraud, especially as customer data flows widen.
Global Comparisons Highlight Nigeria’s Delay
Other markets already demonstrate how open banking can transform financial ecosystems. In the UK, more than 75% of businesses leverage open banking to power services like lending, budgeting, and financial insights. Brazil marshaled its open banking framework in phases since 2021, evolving toward open finance by expanding into investments, insurance, and pensions. By contrast, Nigeria risks lagging not due to resources or talent, but due to institutional inertia.
Why Open Banking Still Matters for Nigeria
Open banking could spark a wave of innovation, empowering fintechs to build tailored financial tools and extending banking access to the underserved. The CBN already laid the legal groundwork with its 2021 regulatory framework and the 2023 operational guidelines, including consent models and the Open Banking Registry. Yet success will hinge on enforcement, standardization, and public education.
Final Thoughts
Nigeria’s open banking journey reflects a tale of ambition meeting bureaucratic drag. Regulators have laid a solid foundation but slow decision-making and fragmented execution threaten to delay impact. Without decisive leadership and clear implementation timelines, the country risks missing a critical opportunity to reshape financial inclusion and fintech innovation.
The coming months will test whether Nigeria can move from regulation into reality or whether its open banking dream remains just that.
