CBN Approves Open Banking: How OnePipe Fits Into Nigeria's Financial Future

Guest post by Emmanuel Oboh, Senior Software Engineer at OnePipe, working on the bank integration layer

In a landmark move, the Central Bank of Nigeria (CBN) has granted official regulatory approval for Open Banking, ushering in a new era for the country’s financial sector. During a pivotal industry engagement on April 10, 2025, led by the Director of Payment System Policy, the CBN outlined an ambitious implementation plan — appointing an implementation secretariat, establishing a national oversight steering committee, and inaugurating sub-committees to oversee key aspects such as advocacy, technical specification definitions, governance, legal frameworks, and more. With a nationwide rollout set for August 1, 2025, Nigeria joins pioneers like the UK, EU, and Australia in adopting a framework that has transformed financial services globally.

Open Banking has long been a key discussion point within Nigeria’s fintech space, with stakeholders eagerly awaiting its formalization. Now, as banks prepare for implementation beginning May 1, 2025, the country is poised for a financial transformation. This shift promises greater transparency, heightened competition, and a wave of innovation that will empower millions of Nigerians with cutting-edge financial solutions.

Understanding Open Banking and Its Global Significance

Open Banking is a framework that enables secure data sharing between banks and authorized third-party providers (TPPs) through Application Programming Interfaces (APIs). At its core, it empowers consumers to grant permission for their financial data to be shared with other service providers, fostering a more interconnected and competitive financial ecosystem. Beyond data sharing, in many jurisdictions, Open Banking also includes provisions for payment initiation and the distribution of core banking services over APIs.

Globally, Open Banking has been a catalyst for change. In the UK, where it was introduced in 2018, over 11.4 million payments are now processed monthly — demonstrating its rapid adoption and real-world impact. Similarly, the European Union’s Payment Services Directive (PSD2) has mandated that banks open their APIs, leading to a surge in fintech innovation. Brazil and Australia have also embraced Open Banking to drive financial inclusion and modernize digital financial services.

Nigeria’s adoption of this framework signals its readiness to join these forward-looking markets, unlocking new opportunities for fintechs, traditional banks, and consumers alike.

The Transformative Opportunities of Open Banking

With Open Banking now officially recognized in Nigeria, the possibilities for businesses and consumers are both vast and exciting.

1. Enhanced Customer Experiences

Gone are the days of cumbersome account openings and lengthy verification processes. Open Banking enables instant Know Your Customer (KYC) checks, allowing businesses to verify identities and assess creditworthiness in real time through access to customer-authorized bank data. This translates to faster onboarding, smoother transactions, and a more seamless user experience.

Additionally, account aggregation will become mainstream, empowering consumers to view and manage multiple bank accounts, investments, and savings products from a single dashboard. This level of financial visibility was previously unavailable to the average Nigerian.

2. Revolutionizing Payments

One of the most immediate and visible impacts of Open Banking will be in the payments space. Solutions like PaywithAccount, developed by OnePipe, enable businesses to collect payments directly from customer bank accounts — securely and automatically, with consent. This eliminates the need for cards, reduces manual payment follow-ups, and simplifies reconciliation processes. The result is a frictionless experience for customers and operational efficiency for businesses.

3. Smarter Lending and Credit Solutions

Access to credit has long been a challenge in Nigeria, especially for individuals and small businesses lacking traditional credit histories. Open Banking changes this dynamic by enabling alternative credit scoring models. Lenders can now assess a borrower’s financial health by analyzing transaction histories, cash flow patterns, and spending behaviors.

This capability allows for faster loan approvals, more personalized lending terms, and broader access to credit — particularly for underserved populations.

4. The Rise of Embedded Finance

Perhaps one of the most exciting developments unlocked by Open Banking is the rise of embedded finance — where non-financial businesses integrate financial services directly into their platforms.

Imagine an e-commerce app that not only enables shopping but also offers instant loans, savings products, or insurance — all without redirecting users to a traditional bank. This future is already being shaped by companies like OnePipe through its Banking-as-a-Service (BaaS) platform.

OnePipe: Leading the Charge in Nigeria’s Open Banking Revolution

As a pioneer in embedded finance and API-driven banking solutions, OnePipe is uniquely positioned to drive the Open Banking transformation in Nigeria.

1. Powering Secure and Compliant API Integrations

From the outset, OnePipe has maintained that “screen scraping and reverse engineering is not Open Banking.” Instead, the company has invested in official Open Banking advocacy and deployed API infrastructure for seven (and counting) partner banks to help them stay ahead of the curve. These banks are now well positioned to lead in Open Banking monetization.

By standardizing API protocols and removing technical friction, OnePipe enables financial institutions to focus on innovation rather than regulatory compliance.

2. Enabling Next-Generation Payment Solutions

With PaywithAccount, OnePipe is showcasing the power of account-to-account payments as a viable alternative to traditional card payments. This solution enables merchants to “pull” transfers directly from customers’ bank accounts, reducing dependency on cards and lowering transaction costs — a clear win for both businesses and consumers.

As Open Banking becomes the standard, it will supercharge solutions like PaywithAccount by providing broader interoperability and security assurances.

3. Bridging the Gap for Informal and Underserved Sectors

OnePipe’s infrastructure also supports cooperatives, trade associations, and informal networks with tools for digital finance. Platforms like Growtrade.io, which connects distributors and retailers with credit, payment, and inventory tools, highlight how OnePipe is enabling sector-specific fintech innovation tailored to Nigeria’s unique market dynamics.

The Future of Open Banking in Nigeria

The CBN’s approval of Open Banking is just the beginning. In the coming years, we can expect:

• A surge in fintech startups building innovative services atop Open Banking APIs
• Greater financial inclusion, especially among the unbanked and underbanked
• Stronger consumer trust driven by standardized data security and transparency
• Increased collaboration between banks, fintechs, and non-financial platforms to deliver hybrid financial products

OnePipe is committed to remaining at the forefront of this revolution — offering the infrastructure, expertise, and visionary leadership needed to unlock Open Banking’s full potential in Nigeria.

Final Thoughts: A New Dawn for Nigerian Finance

The CBN’s Open Banking approval is more than just a regulatory milestone — it’s the foundation for a more inclusive, efficient, and innovative financial future. For businesses, it’s a chance to reimagine their financial operations. For consumers, it brings greater control, convenience, and access to financial services.

As Nigeria steps boldly into this new era, OnePipe stands ready to empower banks, fintechs, and enterprises with the tools to thrive in an Open Banking-powered economy.