Nigeria’s digital lending landscape could be transformed by the rollout of open banking, according to FairMoney Managing Director, Henry Obiekea.
In a wide‑ranging interview, Obiekea described how the move toward more transparent, interoperable financial data could address one of the sector’s thorniest problems: high interest rates tied to limited customer information.
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Nairametrics He explained that digital lenders today often charge steep rates because they lack deep, real‑time insights into a borrower’s financial behaviour.
By using open banking to access a broader set of financial data securely and with consent, lenders could more accurately distinguish low‑risk from high‑risk customers.
With better risk profiling, pricing could become more tailored and, over time, lead to lower borrowing costs for many Nigerians.
Obiekea also highlighted how the approach aligns with wider industry trends and regulatory support.
The Central Bank of Nigeria’s open banking framework, set to be introduced in phased stages from early 2026, aims to standardise secure data sharing among regulated institutions.
This could make credit scoring more robust, boost competition and accountability, and ultimately promote greater inclusion and efficiency in credit markets.
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Beyond pricing, he said open banking can support the broader financial ecosystem by enabling lenders to make faster, smarter decisions and extend formal credit to more underserved individuals and small businesses.
If fully realised, the new model could be a key driver in reshaping how Nigerians access loans and build financial histories in a sector that is rapidly evolving but still hindered by data gaps.
Image Credit: Nairametrics
Source: Nairametrics
