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CBN to prioritise Open Banking in 2025, among others

Wednesday 4 December 2024 13:27 CET | News

The Central Bank of Nigeria (CBN) has unveiled its strategic priorities for 2025, focusing on transformative initiatives to improve the country's financial services landscape, according to Nairametrics. 

 

The Central Bank of Nigeria (CBN) unveiled its priorities for 2025 - transformative initiatives to improve the country's financial services landscape.

 

Speaking at the Bankers’ Committee Annual Dinner on 29 November 2024, CBN Governor Olayemi Cardoso emphasised the institution's commitment to implementing an Open Banking framework, advancing contactless payment systems, and expanding the regulatory sandbox.

 

Key Initiatives for 2025

1. Open Banking framework

Governor Cardoso announced that the adoption of Open Banking will be a central focus in 2025. This framework, which facilitates the secure sharing of financial data between banks and third-party providers, is expected to accelerate innovation in Nigeria’s fintech sector. Open Banking aims to improve service delivery, foster the development of new financial products, and enhance the customer experience, aligning Nigeria with global financial technology trends.

2. Contactless payment systems

As part of efforts to modernise Nigeria’s payment ecosystem, the CBN will promote the adoption of contactless payment solutions. These systems, already gaining momentum worldwide, offer faster and more convenient transaction methods, particularly suited to Nigeria’s youthful and tech-savvy demographic. The initiative is expected to streamline payment processes, encourage cashless transactions, and enhance overall efficiency in retail payments.

3. Regulatory sandbox expansion

The CBN plans to broaden the scope of its regulatory sandbox, providing fintech startups and financial institutions a controlled environment to test innovative solutions. This expansion is anticipated to spur advancements in blockchain, artificial intelligence, and digital currencies, fostering a culture of innovation in the financial sector.

4. Revised guidelines for agency banking

Updates to agency banking guidelines are also on the agenda for 2025. These revisions aim to improve the operational efficiency and security of agency networks, a critical tool for extending financial services to underserved and rural communities.

5. Strengthening electronic payment channels

The CBN will prioritise bolstering Nigeria’s electronic payment infrastructure to support a cashless economy and enhance resilience against cyber threats.

 

Driving financial inclusion and innovation

Governor Cardoso highlighted these initiatives as integral to deepening financial inclusion and positioning Nigeria as a leader in digital finance across Africa. He stated that, in 2025, CBN will prioritise implementing the Open Banking framework, advancing contactless payment systems, and expanding the regulatory sandbox. Additionally, the central bank will issue revised guidelines for agency banking and continue to strengthen electronic payment channels.

The CBN’s 2025 agenda reflects its broader vision of fostering a resilient, innovative, and inclusive financial ecosystem capable of meeting the demands of a rapidly evolving digital economy.


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Keywords: Open Banking, contactless payments, regulation, central bank
Categories: Banking & Fintech
Companies: Central Bank of Nigeria
Countries: Nigeria
This article is part of category

Banking & Fintech

Central Bank of Nigeria

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