CBN Issues Open Banking Guidelines

The Central Bank of Nigeria (CBN) has issued Guidelines for Open Banking in Nigeria.

In a circular referenced: PSM/DIR/PUB/CIR/001/043 and dated March 7, 2023, the apex bank said that the guidelines would create greater access to customer-focused data sharing between banks and third-party firms.

Titled, “Issuance of Operational Guidelines for Open Banking in Nigeria,” the document which was signed by the Director, Payment Services Management Department, Mr. Musa Jimoh, indicated that the guidelines was in furtherance of CBN’s mandate to ensure stability in the nation’s financial system.

The circular reads in full, “The Central bank of Nigeria (CBN) in furtherance of its mandate for the stability of the financial system and pursuant to its role in deepening the financial system hereby issues the Operational Guidelines for Open Banking in Nigeria.

“The adoption of Open Banking in Nigeria will foster customer permissioned data between banks and third-party firms to enable the building of customer-focused products and services.

“It is also aimed at enhancing efficiency, competition and access to financial services in Nigeria.

“All stakeholders are required to ensure strict compliance with the guidelines and all other regulations, as the CBN continues to monitor developments and issue guidance as may be appropriate.”

Open Banking is the practice of enabling secure interoperability in the banking industry by allowing third-party payment service and other financial service providers to access banking transactions and other data from banks and financial institutions.