The Central Bank of Nigeria has announced that it is developing a new industry short code that will allow bank customers to send complaints easily, even without internet access.
The Director of Consumer Protection and Financial Inclusion at the CBN, Dr. Aisha Isa-Olatinwo, revealed this during a virtual Consumer Protection Town Hall meeting tagged Ask the Regulator, organised by Enhancing Financial Inclusion and Advancement.
She explained that many Nigerians are unsure where to report problems because banking services now cut across both telecom and financial sectors. She said, “Given the rapid transformation of the Nigerian financial landscape, consumers often struggle to know where to lodge complaints. Our major concern is vulnerable consumers who do not have internet access or who use feature phones and are forced to physically visit their financial institutions when faced with challenges.”
According to her, the bank is working closely with the Nigerian Communications Commission to provide a simple channel for customers across the country. She added, “We are working with the NCC to develop an industry short code that will enable consumers to reach their financial institutions anytime, with or without internet access.”
Isa-Olatinwo also noted that the CBN has improved its complaint handling system. She said, “We have also streamlined our processes and partnered with banks so we are seen as industry protectors. Banks often claim we side with consumers 100 percent of the time, but our objective is safeguarding financial system stability.” She further stated that the bank now records a 94 percent month-on-month timely resolution rate for consumer issues.
A new EFInA survey presented during the meeting showed mixed public experiences. The poll revealed that 66 percent of respondents know how to report and escalate complaints, while 4 percent do not. It also found that 26 percent of failed transactions were reversed within 24 hours, and 54 percent were reversed within 24 to 48 hours.
The survey further showed that 61 percent of Nigerians had a failed transaction in the past year, 6 percent experienced fraud, 14 percent reported hidden charges, and 15 percent complained about poor service.
President of the Consumer Advocacy Foundation of Nigeria, Mrs. Sola Salako-Ajulo, said many customers feel unprotected and believe regulators favour service providers. She called for fraud insurance to reduce the stress placed on victims of electronic fraud. She said, “From our perspective, the onus of proving the legitimacy of a reversal in a fraud case should not be on the consumer. What is missing in our system is fraud insurance. With such insurance, a bank can immediately reverse reported fraud, refund the consumer, and then complete its investigation.”
Also speaking on how banks should handle disputes between customers and merchants, Chairman of the Committee of e-Business Industry Heads, Mr. Ajibade Laolu-Adewale, represented by the Provost of CeBIH Academy and Group Head of eBusiness at Sterling Bank, Mr. Adeyemi Salisu, warned banks against sending customers back to merchants after failed transactions.
He said, “The process is clear: the dispute is between the acquiring bank and the issuing bank. Bank staff must never send customers back to the merchant. Regulation already states that for every dispute, the two banks must engage and resolve it so the consumer can be satisfied.”
