By Anastasia John E.

The Central Bank of Nigeria (CBN) has successfully facilitated refunds totaling N7.05 billion and $714,569.03 to bank customers over an eight-month period. This action addresses complaints of unauthorized deductions and withheld funds by several money deposit banks in Nigeria.

These recoveries come amidst efforts to address unethical banking practices. In October 2024, the House of Representatives proposed a bill to amend the Banking and Other Financial Institutions Act 2020, aiming to curb fraudulent deductions from customer accounts by commercial banks.

Going by the documents, the CBN received over 20,000 customer complaints in 2024. Of these, 19,988 complaints were registered within the eight-month period, with 15,306 cases (76.58%) resolved successfully.

In response to these issues, the CBN initiated a comprehensive review of consumer protection regulations in February 2024 to enhance standards and address emerging fintech risks. A 2024 factsheet from the CBN highlighted its commitment to fair treatment, stating, “Facilitated refunds totaling approximately N7.05 billion and $714,569.03 to customers disputing financial service providers.”

While the names of the erring banks were not disclosed, the CBN emphasized its rigorous enforcement of sanctions to ensure compliance, deter unethical behavior, and promote transparency in the financial sector. In 2024, the CBN also piloted a consumer protection risk-based examination to identify policy gaps and improve conduct among financial institutions.

The CBN’s efforts extend beyond refunds. The bank has improved customer service standards and increased engagement with formal financial institutions. It approved licenses for new banks, transitioned one entity from a merchant to a national commercial bank, and issued approvals in principle (AIPs) for regional commercial and non-interest banking licenses.

The CBN also licensed 16 new microfinance banks, re-licensed 53 previously revoked ones, and approved five new finance companies for operations. To bolster cybersecurity, the CBN adopted ISO 27001 standards and introduced a risk-based cybersecurity framework, conducting assessments to enhance resilience and operational efficiency in the banking sector.