Central Bank of Nigeria releases operational guidelines for open banking in Nigeria

By Leandra Monteiro

The Central Bank of Nigeria (CBN) recently in collaboration with industry stakeholders holders, developed Operational Guidelines for Open Banking in the country. The newly released guidelines keep in line with the provisions of the Regulatory Framework.

As per the notice, the adoption of open banking in Nigeria will foster the sharing of customer-permissioned data between banks and thirty-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.

Some of the Open Banking Operational Guidelines are:

1. Provide clear responsibilities and expectations for the various participant categories
2. Ensure consistency and security across the open banking system

• Stipulate safeguards for financial system stability under an open banking regime

1. Promote competition and enhances access to banking and other financial services
2. Outline minimum requirements for participants.

The circular by the Bank states that all participants in open banking shall adhere strictly to security standards when accessing and storing data, and shall be subject to minimum privacy, operational, customer experience and risk management standards as prescribed by the Bank.

Furthermore, the Central Bank of Nigeria (CBN) shall provide and maintain an Open Banking Registry (OBR) for the industry. The OBR shall be a public repository for details of registered participants.