Central Bank of Nigeria Launches Pioneering Open Banking Guidelines

The Central Bank of Nigeria has introduced operational guidelines for open banking, becoming the first in Africa to do so. These guidelines dictate how banks and financial institutions access and share consumer data, aimed at fostering competition and improving financial service accessibility. Compliance is mandatory, and the CBN will continue to monitor developments.

The Central Bank of Nigeria (CBN) has unveiled operational guidelines for open banking, marking a significant milestone as the first African nation to implement such regulations. The recently released guidelines delineate how banks and financial institutions in Nigeria are to access and share consumer data, including the stipulations for the responsibilities and expectations of all parties involved.

These guidelines are expected to enhance competition within the financial sector and broaden access to financial services and payment systems across the nation. Musa Jimoh, the director of the payments system management department at CBN, emphasized that open banking will facilitate data sharing, enabling the development of customer-centered products and services.

Compliance with these guidelines is mandatory for all stakeholders, as the CBN will maintain oversight and provide further guidance as necessary. The CBN’s journey towards open banking began in June 2017, with a foundational regulatory framework established in February 2021.

The Central Bank of Nigeria’s publication of open banking guidelines represents a pioneering move in Africa, aimed at fostering innovation and competition in the financial services sector. The guidelines facilitate the sharing of consumer data, ensuring that all participants adhere to standards designed to enhance customer experience and service delivery. Continuous compliance monitoring by the CBN is essential to uphold the integrity of this system.

Original Source: www.fintechfutures.com