The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have announced plans to introduce a universal short code to address customer complaints related to banking transactions.
This joint initiative aims to provide a more accessible and efficient complaint resolution process for all bank customers, regardless of internet access. It also promotes financial inclusion by extending its services to those without smartphones or reliable internet access.
The two regulatory institutions announced that customers can communicate with their banks and seek redress for grievances by dialing a simple short code, thereby reducing the need for physical branch visits.
Speaking on the new initiative, CBN’s Director, Consumer Protection and Financial Inclusion, Dr. Aisha Isa-Olatinwo, explained that there was an existing digital divide that had been hindering many customers from resolving banking hitches and assured that the proposed universal short code would foster inclusivity by providing all customers with equitable access to complaint resolution avenues.
Already, as part of efforts to achieve the objectives of the universal code, the apex bank has strengthened its consumer complaint management framework and deepened its collaboration with deposit money banks (DMBs), being the frontline players in the financial system.
According to the apex bank, currently approximately 94% resolution rate are being recorded in consumer complaints within one month of their submission, indicating enhanced efficiency and accountability.
Meanwhile, recent findings from a poll conducted by Enhancing Financial Inclusion and Advancement (EFInA) indicated that 61% of respondents experienced failed transactions over the past year, while 66% were aware of the procedures for lodging and escalating complaints.
The survey findings further reflected that on transaction reversals, 26% of respondents received refunds within 24 hours, while 54% experienced delays of 24 to 48 hours.
The poll also identified issues such as fraud (6%), hidden charges (14%), and poor customer service (15%) as some of the customers’ challenges.
Speaking at a forum convened for the CBN-NCC collaboration to address the banking transaction challenges, President of the Consumer Advocacy Foundation of Nigeria (CAFON), a civil advocacy committed to consumer protection, Mrs. Sola Salako-Ajulo, said many consumers perceived regulators as being more aligned with service providers, thus leaving customers at the receiving end during dispute resolution with the latter.
She canvassed the need for the introduction of fraud insurance to enable timely refunds in disputed transaction cases, thus shifting the burden of proof temporarily away from consumers while investigations are ongoing in reported fraud and other failed transaction cases.
In his remarks, the representative of the Committee of e-Business Industry Heads (CeBIH), Mr. Adeyemi Salisu, while clarifying procedures on failed transactions, stressed that customers should not be redirected to merchants.
According to him, the responsibility for resolving such disputes rests with the acquiring and issuing banks, which must work directly to ensure prompt and satisfactory resolution for affected customers.
Banking and digital payment experts believe that the proposed universal short code will mark a major step towards deepening financial inclusion, enhancing trust in the Nigerian banking system, and ensuring that all customers are empowered to exercise their consumer rights.