CBN, NCC to Develop Internet-Free Short Code for Nigerians with bank complaints
- The CBN is collaborating with the NCC to develop a single industry-wide short code for consumers to reach their banks without internet access
- A survey by Enhancing Financial Inclusion and Advancement (EFInA) shows high levels of failed transactions and varying reversal timelines among Nigerian consumers
- Consumer advocates and e-business experts are calling for stronger protections, including fraud insurance and clearer dispute-resolution processes
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, tech and macroeconomic trends in Nigeria.
The Central Bank of Nigeria (CBN) has said it is working with the Nigerian Communications Commission (NCC) to introduce a unified short code that will allow bank customers to reach their financial institutions at any time, even without internet access.
This was disclosed by the Director of the Consumer Protection and Financial Inclusion Department at the CBN, Dr Aisha Isa-Olatinwo, during a virtual Consumer Protection Town Hall meeting themed “Ask the Regulator”, organised by Enhancing Financial Inclusion and Advancement (EFInA).
Source: Getty Images
Isa-Olatinwo said the initiative became necessary as consumers increasingly find it difficult to identify the right channel for lodging complaints, especially since financial services now overlap between the telecom and banking sectors.
As reported by Vanguard, the Director said the unified short code will particularly benefit vulnerable users, including those who rely on feature phones or live in areas with limited internet access.
94% consumer complaints resolved
She added that the CBN has strengthened its internal processes and is working more closely with banks to ensure consumer protection while maintaining the stability of the financial system. The director also noted that the apex bank now records a 94% month-on-month timely resolution of consumer complaints.
She disclosed that a recent survey by EFInA on consumer experience showed that 66% of respondents understand how to escalate complaints, while 4% do not. The survey also revealed that 26% of failed transactions were reversed within 24 hours, and 54% were reversed within 24 to 48 hours. In the past year, 61% of respondents experienced failed transactions, 6% encountered fraud, 14% reported hidden charges, and 15% cited poor customer service.
President of the Consumer Advocacy Foundation of Nigeria (CAFON), Mrs Sola Salako-Ajulo, said many consumers still feel unprotected and believe regulators align more with service providers.
She urged stakeholders to consider fraud insurance as a way of reducing the burden on customers in fraud-related disputes.
She explained that such insurance would allow banks to immediately reverse fraudulent transactions, refund customers, and then conclude investigations without shifting the burden of proof to consumers.
Also speaking at the event, the Chairman of the Committee of e-Business Industry Heads (CeBIH), Mr Ajibade Laolu-Adewale, advised banks against referring customers back to merchants when disputes arise from failed transactions.
Laolu-Adewale, who was represented by Mr. Adeyemi Salisu of Sterling Bank, stated that existing regulations already clarify that such issues should be resolved between the acquiring and issuing banks, ensuring customers receive timely assistance.
Source: Getty Images
CBN, NCC set up task force for failed transactions
Legit.ng recently reported that the CBN and the NCC have set up a joint task force to address persistent incidents of failed USSD transactions.
This follows complaints by Nigerians who are frustrated by either or both banks and telecommunication companies when attempting USSD transactions.
The move, which was announced at the 94th Telecom Consumer Parliament in Lagos, is expected to help restore consumer trust and stabilise the long-strained relationship between telecom operators and banks.
Source: Legit.ng
