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CBN to prioritize Open Banking, Contactless Payments, and Regulatory Sandbox in 2025

The Central Bank of Nigeria (CBN) has outlined key initiatives for 2025 aimed at advancing the country’s financial services sector.

Speaking at the Bankers’ Committee Annual Dinner held on November 29, 2024, CBN Governor Olayemi Cardoso revealed plans to implement the open banking framework, promote contactless payment systems, and expand the regulatory sandbox.

These initiatives, he noted, are central to deepening financial inclusion and enhancing Nigeria’s payment ecosystem.

CBN Key Initiatives

What Cardoso is saying

“In 2025, we will prioritize initiatives including implementing our open banking framework, advancing contactless payment systems, and expanding our regulatory sandbox.

Additionally, we will issue revised guidelines for agency banking and continue to strengthen electronic payment channels.”

Open Banking : Cardoso highlighted the implementation of the open banking framework as a top priority for the coming year.

  • Open banking, which enables secure sharing of financial data between banks and third-party service providers, is expected to spur innovation and create new opportunities within the financial technology (fintech) space.
  • With open banking gaining traction globally, Nigeria’s adoption of this framework is anticipated to catalyze the development of new financial products, improve service delivery, and enhance customer experience across the industry.

Advancing Contactless Payments: As part of its vision for a more seamless payment system, the CBN plans to advance contactless payment solutions in 2025.

  • Cardoso emphasized the need to align with global trends, where contactless payment systems are fast becoming the norm for retail transactions.
  • The initiative is expected to drive the adoption of modern payment technologies, reduce transaction times, and promote cashless transactions, particularly among Nigeria’s growing youth and tech-savvy population.

Regulatory Sandbox for Innovation: Cardoso also announced plans to expand the CBN’s regulatory sandbox, a controlled environment where fintech companies can test innovative products under the supervision of the regulator.

  • The sandbox expansion is expected to encourage startups and established financial institutions to experiment with novel solutions in areas such as blockchain, artificial intelligence, and digital currencies.
  • Another priority area for the CBN in 2025 is bolstering the robustness of Nigeria’s electronic payment infrastructure.
  • Cardoso stressed the importance of strengthening these channels to support a more cashless economy and ensure resilience against cyber threats.

Revised Agency Banking Guidelines

The CBN will also issue revised guidelines for agency banking, a critical tool in extending financial services to underserved and rural communities. Cardoso explained that these updates are aimed at enhancing the operational efficiency and security of agency banking networks, ensuring they remain a reliable channel for financial inclusion.

The outlined initiatives align with the CBN’s broader vision of fostering a modern, resilient, and inclusive financial system. By prioritizing innovation, regulatory advancements, and infrastructure upgrades, the apex bank seeks to position Nigeria as a leader in digital finance within Africa.

 


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