Nigeria becomes Africa’s open banking regulation pioneer

Nigeria, Africa’s largest economy, has become the first country in the continent to issue operational guidelines on open banking. The Central Bank of Nigeria (CBN), in a circular issued earlier this week, announced that it has developed open banking regulation in partnership with industry stakeholders.

Open banking is a new practice that involves banks sharing financial information with third party providers (APIs) through application programming interfaces to promote the development of innovative products targeted to meet customer needs. The concept is gaining significant traction around the world.

The new guideline on open banking was issued through a circular signed by Moses Jimoh, Director of the Payment Systems Management Department at CBN. The circular was directed to deposit money banks, mobile money operators and payment service providers in the country. The guidelines spell out the principles for data sharing in Nigeria’s banking and payment systems.

The document sets out the minimum security standards that industry stakeholders must adhere to while accessing and storing customer data. It also spells out minimum privacy, operations, customer experience and risk management. One of the most common terms used by risk management brokers, risk management refers to the practice of identifying potential risks in advance. Usually, it also involves analyzing the risk and taking precautionary steps to reduce and prevent such risk. Such efforts are essential for brokers and venues in the finance industry, given the potential for downside in the face of unforeseen events or crises. Given the more tightly regulated environment in almost every asset class, risk management, one of the most common terms used by brokers, refers to the practice of identifying potential risks in advance. Usually, it also involves analyzing the risk and taking precautionary steps to reduce and prevent such risk. Such efforts are essential for brokers and venues in the finance industry, given the potential for downside in the face of unforeseen events or crises. Read this term’s standards to be followed by banks and their third party providers under the country’s open banking regime, given the more tightly regulated environment in almost every asset class.

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In the circular the Nigerian apex banking authority said the guidelines are aimed at “enhancing efficiency, competition and access to financial services in Nigeria”.

“The adoption of Open Banking in Nigeria will lead to the sharing of customer-permitted data between banks and third-party firms to enable the creation of customer-centric products and services,” Jimoh explained in the circular.

The Way To Open Banking Regulation In Nigeria

Open banking regulation Like any other industry with a high net worth, the financial services industry is strictly regulated to help prevent illegal behavior and manipulation. Each asset class has its own set of protocols to combat their respective types of abuse. In the forex space, regulation is assumed by authorities in many jurisdictions, although ultimately lacking a binding international order. Who are the leading regulators of the industry? Regulators such as the UK’s Financial Conduct Authority (Like any other high net worth industry, the financial services industry is strictly regulated to help prevent illegal behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse. In the forex space, regulation is considered by authorities in several jurisdictions, although ultimately lacking a binding international order. Who are the industry’s leading regulators? Regulators such as the UK’s Financial Conduct Authority (read the term in Nigeria since 2017 when a group of industry stakeholders formed the Open Banking Nigeria Group. However, CBN first showed interest in an open banking system in 2018, when Jimoh noted that the banking authority was “looking at how to raise” the standard for all banks and fintechs to plug in.

Three years later, the CBN issued a regulatory framework for open banking in Nigeria. The framework was later developed into draft operational guidelines in May 2022.

Commenting on the new regulation, Open Banking Nigeria said the guidelines will be supported by the Nigeria Data Protection Regulation (NDPR) which was issued in 2009. “Data privacy is a cornerstone for open banking,” the group wrote in a blog post. ,

Nigeria, Africa’s largest economy, has become the first country in the continent to issue operational guidelines on open banking. The Central Bank of Nigeria (CBN), in a circular issued earlier this week, announced that it has developed open banking regulation in partnership with industry stakeholders.

Open banking is a new practice that involves banks sharing financial information with third party providers (APIs) through application programming interfaces to promote the development of innovative products targeted to meet customer needs. The concept is gaining significant traction around the world.

The new guideline on open banking was issued through a circular signed by Moses Jimoh, Director of the Payment Systems Management Department at CBN. The circular was directed to deposit money banks, mobile money operators and payment service providers in the country. The guidelines spell out the principles for data sharing in Nigeria’s banking and payment systems.

The document sets out the minimum security standards that industry stakeholders must adhere to while accessing and storing customer data. It also spells out minimum privacy, operations, customer experience and risk management. One of the most common terms used by risk management brokers, risk management refers to the practice of identifying potential risks in advance. Usually, it also involves analyzing the risk and taking precautionary steps to reduce and prevent such risk. Such efforts are essential for brokers and venues in the finance industry, given the potential for downside in the face of unforeseen events or crises. Given the more tightly regulated environment in almost every asset class, risk management, one of the most common terms used by brokers, refers to the practice of identifying potential risks in advance. Usually, it also involves analyzing the risk and taking precautionary steps to reduce and prevent such risk. Such efforts are essential for brokers and venues in the finance industry, given the potential for downside in the face of unforeseen events or crises. Read this term’s standards to be followed by banks and their third party providers under the country’s open banking regime, given the more tightly regulated environment in almost every asset class.

keep reading

In the circular the Nigerian apex banking authority said the guidelines are aimed at “enhancing efficiency, competition and access to financial services in Nigeria”.

“The adoption of Open Banking in Nigeria will lead to the sharing of customer-permitted data between banks and third-party firms to enable the creation of customer-centric products and services,” Jimoh explained in the circular.

The Way To Open Banking Regulation In Nigeria

Open banking regulation Like any other industry with a high net worth, the financial services industry is strictly regulated to help prevent illegal behavior and manipulation. Each asset class has its own set of protocols to combat their respective types of abuse. In the forex space, regulation is assumed by authorities in many jurisdictions, although ultimately lacking a binding international order. Who are the leading regulators of the industry? Regulators such as the UK’s Financial Conduct Authority (Like any other high net worth industry, the financial services industry is strictly regulated to help prevent illegal behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse. In the forex space, regulation is considered by authorities in several jurisdictions, although ultimately lacking a binding international order. Who are the industry’s leading regulators? Regulators such as the UK’s Financial Conduct Authority (read the term in Nigeria since 2017 when a group of industry stakeholders formed the Open Banking Nigeria Group. However, CBN first showed interest in an open banking system in 2018, when Jimoh noted that the banking authority was “looking at how to raise” the standard for all banks and fintechs to plug in.

Three years later, the CBN issued a regulatory framework for open banking in Nigeria. The framework was later developed into draft operational guidelines in May 2022.

Commenting on the new regulation, Open Banking Nigeria said the guidelines will be supported by the Nigeria Data Protection Regulation (NDPR) which was issued in 2009. “Data privacy is a cornerstone for open banking,” the group wrote in a blog post. ,

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