Nigeria’s Central Bank (CBN) has issued a directive requiring commercial banks to seek regulatory approval before implementing changes to their core banking software. This move comes in response to recent disruptions experienced by millions of customers due to core banking system upgrades undertaken by several major banks.

In the latter half of 2024, at least four commercial banks initiated core banking system upgrades aimed at improving efficiency and customization. However, these changes have led to widespread service disruptions, frustrating customers and drawing criticism.

The CBN’s intervention is intended to mitigate such disruptions and protect consumer interests. The regulator’s revised 2019 consumer protection regulations, released in February 2024, further emphasizes its commitment to safeguarding customer rights.

While some banking experts have questioned the CBN’s relatively slow response, the directive signals a proactive approach to future system changes. The absence of a specific regulatory framework for core banking platform changes may have contributed to the delay in intervention.

The CBN’s directive underscores the importance of careful planning, rigorous testing, and effective communication during major system upgrades. By requiring prior regulatory approval, the central bank aims to ensure a smoother transition and minimize disruptions to banking services.