The Central Bank of Nigeria (CBN) has declared that the country’s instant payment system ranks among the most advanced globally, crediting fintech innovation and regulatory strides for the progress.
Speaking during the FintechNGR Quarter Two Regulators’ Forum Webinar themed “Beyond Compliance: Unlocking Innovation with Nigeria’s Open Banking Framework,” the CBN’s Director of Payments System Policy, Musa Jimoh, noted that Nigeria’s payments now occur within seconds—a clear sign of technological maturity and commitment to financial inclusion.
Jimoh explained that the development of Nigeria’s payment ecosystem began as far back as 2006, with the launch of the first Payment Systems Vision. By 2010, a major breakthrough came when CBN mandated all payment cards to switch from maxed out magnetic strips to secure PIN-enabled EMV cards—a shift that catalyzed the expansion of mobile banking, cashless policies, agent banking, and mobile money operations.
He emphasized the transformative potential of open banking, describing it as a catalyst for innovation, customer empowerment, financial inclusion, and healthy competition. With over 160 licenses issued for financial and payment services, Nigeria’s financial landscape is rapidly expanding.
Jimoh also pointed out that while banks are custodians of vast customer data, its fragmented nature has hindered its full use. Through open banking, developers can access permissioned data to build creative financial services, provided customers give informed consent.
The CBN, he said, has proactively created a regulatory sandbox and issued guidelines to support this innovation. It has also focused on strengthening biometric verification, introducing the Bank Verification Number (BVN), and investing in infrastructure upgrades for seamless transaction processing.
Nonetheless, he acknowledged that challenges remain, particularly with API standardisation and cybersecurity. To address this, the apex bank has formed dedicated workstreams to refine the open banking framework.
Jimoh concluded by reaffirming the CBN’s commitment to fostering openness, collaboration, and innovation across the financial ecosystem, saying the ultimate goal is to drive national economic resilience and inclusive prosperity.
