One could say NIBSS was built for this pivotal moment in Nigeria’s financial history.
Back in 1993, the Central Bank of Nigeria and the Bankers’ Committee brought in NIBSS to solve a massive problem—Nigerian banks couldn’t talk to each other. Transferring money between banks was a nightmare.
Each bank was in its silo, and that made moving money a chore. So, NIBSS was created to change that. They built the pipes that connected every bank, making transfers possible and laying the foundation for the system we have today.
Over time, NIBSS became the glue for the entire financial ecosystem. Want to transfer money? NIBSS. BVN for identity? NIBSS again. They became the infrastructure that banks, fintechs, and the entire financial sector depended on.
Now, with open banking taking shape, NIBSS is front and center. They’re the ones making sure banks, fintechs, and anyone else with an API can exchange data without everything falling apart. Open banking needs someone who knows how to connect the dots—and NIBSS has been doing that for decades.
So why does this matter? If you’re serious about open banking in Nigeria, you need to understand the role of NIBSS in open banking in Nigeria.
Let’s dive into why NIBSS is the key player and what makes it so essential in this space.
1. Manages the Open Banking Registry (OBR)
NIBSS was officially given the authority to manage the Open Banking Registry (OBR) in 2021 when the Central Bank of Nigeria (CBN) released its regulatory framework for open banking. The CBN chose NIBSS because they had already proven themselves as the backbone of the Nigerian financial system, making them the logical choice for overseeing this new registry.
What does managing the OBR entail? It’s not just about keeping a list—it’s about ensuring that the entire ecosystem stays compliant, secure, and up-to-date.
First, NIBSS verifies every entity that wants to participate in open banking. Whether it’s a bank, a fintech, or a third-party provider, NIBSS makes sure they meet all requirements set by the CBN, acting as the gatekeeper to keep out unverified players.
Next, NIBSS handles the registration and constant updating of the registry. When there are changes—like a merger, a name change, or a revoked license—NIBSS updates the registry to keep the information accurate.
The OBR is also a public resource, meaning that NIBSS makes it accessible to all participants in the open banking ecosystem. This transparency allows banks, fintechs, and others to easily verify if a potential partner is legitimate and authorized.
Finally, managing the OBR involves ensuring its security. NIBSS protects the registry from unauthorized access, keeping the data safe and ensuring that only authorized entities can make changes.
2. Manages the Open Banking Consent Management System (OBCMS)
The OBCMS is all about making sure that customers are in control of their financial data. In open banking, data sharing only happens when customers give explicit permission, and NIBSS ensures that this process is secure, transparent, and easily traceable.
What does managing OBCMS entail? NIBSS’s job is to create and manage a centralized system where all consents are recorded. Whenever you permit a fintech app to access your bank account details, NIBSS is the one ensuring that your consent is properly documented. This means creating a digital record that can be easily referenced, proving that you authorized the data access.
Beyond recording consent, NIBSS also makes it possible for customers to manage their permissions. If you decide to revoke access that you previously granted, OBCMS lets you do that seamlessly. NIBSS ensures that your updated consent is communicated across the board, so the fintech or bank no longer has access.
In addition to recording and revoking consent, NIBSS enforces strict standards for how these permissions are handled. They ensure that all data sharing is in compliance with regulatory guidelines and that every consent is valid—no shortcuts, no loopholes.
Featured read: The roles of CBN with Open Banking in Nigeria
NIBSS is at the center of open banking in Nigeria
From its origins as the infrastructure provider that solved interbank communication to its current role as the backbone of every key payment system, NIBSS has been indispensable. They were brought in to fix a broken system in the early 90s, and they’ve grown to become the critical infrastructure player in the modern financial landscape.
Open banking might sound like a fresh, disruptive idea, but it’s built on a foundation NIBSS laid decades ago. They’re the ones making sure that all the promises of open banking—innovation, better customer service, seamless data sharing—actually come to life.
