CBN Refunds N7.05 Billion, $714,000 to Bank Customers as Bank Glitches Continue
- The Central Bank of Nigeria has disclosed that it initiated a refund of N7.05 billion and over $714,000 to bank customers in eight months
- CBN disclosed that the refund is part of the one N1 billion disputed by bank customers and illegally withheld by the banks
- CBN also reported that it launched a whistleblower platform to report financial recklessness by banks
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Central Bank of Nigeria (CBN) has forced several commercial banks to refund N7.05 billion and $714.569 to bank customers in eight months following disputes in the financial system.
The eight-month recovery is reportedly part of the one billion naira illegally withheld by the banks under controversial situations.
Source: Facebook
Bank customers report unauthorised deductions
Findings show that many bank customers have reported unauthorised or fraudulent deductions by commercial banks in Nigeria, with customers accusing the banks of siphoning their funds.
According to reports, in October 2024, the House of Reps introduced a bill to amend the Banking and Other Financial Institutions Act 2020 and Other Related Matters to curtail the rising cases of fraudulent deductions from bank customers’ accounts by banks.
A document by the CBN shows that the apex bank received over 20,000 customer complaints in 2024 after customers reported the issue to the regulator due to the banks' failure to settle the disputed claims.
CBN’s consumer complaints resolution chart showed that the bank received 19,988 customer complaints in eight months, of which 15,306 were resolved.
CBN began a comprehensive review of consumer protection regulations early last year to improve standards and address emerging financial technology risks.
CBN begins a pilot consumer protection examination
The apex bank did not disclose the names of the erring banks. However, in a recent drive to implement sanctions for violations, CBN said it had enforced sanctions and ensured compliance, stopped unethical behaviours, and boosted transparency in the financial sector.
Leadership reports that CBN implemented a pilot consumer protection risk-based examination last year to identify policy gaps and improve conduct among financial institutions proactively.
Despite the shortcomings of the existing financial institutions, CBN approved new banks in 2024, and one bank transitioned from a merchant bank to a commercial bank.
CBN launches a whistleblower platform
In a recent report, CBN launched a whistleblower platform for bank customers to report financial misconduct in the financial services system.
The initiative aligns with its commitment to promote a culture of integrity, transparency, and operational excellence within its ranks in the Nigerian financial ecosystem.
The apex bank disclosed this in a document in its latest update for December 2024, saying that the platform is a significant step toward creating a safe environment for employees, vendors, consultants, and others.
Several Nigerian banks migrated to core banking platforms in the last quarter of 2024, leading to glitches in the financial services sector.
Several bank customers reported that they either experienced transaction delays or had their accounts debited after the banks completed the migration.
Banks borrow N131.42 trillion from CBN
Legit.ng earlier reported that due to the CBN's tight monetary policy, which led to cash scarcity, commercial banks and other financial institutions borrowed N131.42 trillion in 2024 to meet their daily needs.
Data released by the CBN shows that the amount represents a 636.6% increase and more than the N17.84 trillion the financial institutions borrowed in 2023.
The CBN data indicated that commercial and merchant banks borrowed the most in March 2024 and the lowest in January last year.
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Source: Legit.ng
