Regulatory Framework For Open Banking In Nigeria

The Central Bank of Nigeria (the "CBN") in an attempt to provide an enabling regulatory environment for provision of innovative and customer-centric financial services issued the Regulatory Framework for Open Banking in Nigeria (the "Framework") on February 17, 2021. Prior to the issuance of the Framework, banks operated in a closed ecosystem, with exclusivity of access to customer information, locking out innovators; and forcing customers to rely solely on the digital channel offerings of their respective banks. With the issuance of the Framework, the financial services space in Nigeria will experience the simplification and integration of multiple and complicated financial services.