The Central Bank of Nigeria (CBN) has issued a directive to commercial banks, requiring them to obtain regulatory approval before making any changes to their core banking software. This move comes in response to recent technology updates made by some of the country’s major banks, leading to disruptions in banking services for millions of customers.
Several banks have implemented changes to their core banking applications since the latter part of 2024, citing reasons such as cost efficiency and customization needs. However, these changes have resulted in customer complaints and service unavailability. While banks are striving to address these issues, the CBN’s intervention adds further pressure on them.
The CBN’s directive aligns with its role in safeguarding customer interests as the regulatory authority. It follows the release of revised consumer protection regulations in February 2024. Despite concerns raised by banking experts and customers regarding the delay in regulatory action, the CBN’s new directive aims to address the absence of a specific framework for overseeing core banking platform alterations.
The directive is intended to prevent future disruptions and ensure a smoother transition process for banks making changes to their core banking systems.