With Nigeria set to roll out its long-awaited open banking policy in August 2025, hopes are high, but so are concerns.
The question on the lips of everyone is this: will this digital shift finally bring financial services to over 38 million unbanked Nigerians? Or will it widen the gap between those online and those left out?
In this exclusive report, Pinnacle Daily speaks with investment banker Sidiku Olayinka Oscars and cybersecurity expert Utibe Emmanuel to explore the stakes, the risks, and the road ahead.
Banking Without Barriers
“This isn’t just regulation,” says Oscars. “It’s a lifeline for the millions locked out of Nigeria’s financial system.”
Open Banking allows secure data sharing between banks, fintechs, and licensed third-party providers (TPPs) using standardised APIs.
If consent is obtained, a customer’s transaction history, digital payments, and loan behaviour can be accessed to build tailored financial products.
What this means is that financial access won’t depend on salary slips or formal addresses but on mobile money, bill payments, and informal trade.
Customer → Consent → API → Fintech → Personalized Service
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Customer data flows securely via APIs
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Fintechs build tailored products (loans, savings, budgeting tools)
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The regulatory body (CBN) oversees data flow and compliance
Inclusion Reimagined
“For the first time, market women, keke riders, and roadside tailors can access loans, save digitally, and even invest without ever entering a bank,” Oscars says.
Open Banking empowers fintechs to serve those traditionally ignored by big banks, offering tools like:
- Real-time budgeting apps
- Flexible savings plans
- Microloans and smart lending options
“It’s built for everyday people,” Oscars adds. “And it will force banks to adapt or become obsolete.”
Beyond Banking: Fueling Growth
Cybersecurity expert Utibe Emmanuel sees broader potential. “This policy can drive GDP growth,” he says. “It will ease credit for SMEs, attract fintech investment, and create digital jobs.”
He notes benefits for sectors like agriculture, healthcare, education, and trade. “It bridges Nigeria’s informal and formal economies,” he adds.
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How It Works
Open Banking connects banks and fintechs through a secure digital pipeline.
Once licensed by the CBN, third-party providers can access data with user consent to offer personalised lending, budgeting and financial wellness tools, instant account switching and cross-platform financial visibility.
It is considered a digital democracy of finance if implemented well.
Risks and Realities
Emmanuel is cautious. “Without strong cybersecurity, Open Banking could be a disaster,” he warns. “Vast amounts of financial data will be in motion and, if not protected, vulnerable to abuse.”
He also flags digital exclusion. “Millions lack smartphones, internet access, or digital skills. How do we ensure they’re not left behind again?”
Oscars adds that resistance may come from legacy banks unwilling to share customer data. “We must expect internal pushback.”
Opportunities vs. Risks (Pros & Cons Table)
| Opportunities | Risks |
|---|---|
| Increased financial inclusion | Cybersecurity vulnerabilities |
| Better access to credit for SMEs | Digital illiteracy |
| More competition, lower banking costs | Data misuse and privacy concerns |
| Growth in fintech and job creation | Resistance from legacy banks |
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The Urgent To-Do List
Experts say the CBN must go beyond announcements. Execution is key. Immediate priorities include:
- Stronger Data Protection Laws
Clear consent rules, data boundaries, and penalties for misuse. - Cybersecurity Standards
Unified security protocols with CBN-led oversight. - Public Awareness Campaigns
Use media and community outreach to build digital literacy. - Unified API Frameworks
All institutions must operate under common technical standards. - ID Integration
Link BVN and NIN systems for secure onboarding and fraud control.
AI: The Next Frontier
Oscars believes Nigeria must go further. “AI can detect fraud, personalise services, and assess risk better than any manual process,” he says. “We’ve laid the foundation with Open Banking—now we need to build smart.”
He calls for an AI sandbox where fintech startups can safely develop and test intelligent solutions under regulatory supervision.
He listed what is immediately needed to include: fraud detection using AI, smart credit scoring, real-time financial advice and an innovation lab for fintech startups under CBN’s watch.
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A Test of Will
Open Banking isn’t just a tech upgrade. It’s a national test. If executed well, it could unlock opportunity for millions and strengthen the economy.
If mishandled, it may deepen inequality and erode trust.
“This is about access and dignity,” says Emmanuel. “We’re not just building digital banks. We’re building a future.”
August 2025 isn’t just a launch. It’s a litmus test for Nigeria’s digital destiny.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
