The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC), have jointly announced plans to introduce a universal short code for banking complaints. This aligns with efforts to enhance consumer protection and financial inclusion.
With this initiative, bank customers will have a simple and efficient channel to lodge complaints, regardless of their access to smartphones or internet connectivity.
According to the initiative, with just dialing a dedicated short code, customers will be able to reach their banks directly to report issues and seek redress, thereby reducing the need for physical visits to bank branches.
Dr Aisha Isa-Olatinwo, CBN’s Director of Consumer Protection and Financial Inclusion, disclosed this at a virtual Consumer Protection Town Hall meeting titled “Ask the Regulator”, organized by Enhancing Financial Inclusion and Advancement (EFInA).
She stated that the universal short code would ensure inclusivity by granting all customers equal access to complaint resolution mechanisms.
She noted that given the rapid transformation of the Nigerian financial landscape—which now cuts across both telecom and banking sectors—consumers often struggle to know where to lodge complaints.
CBN’s major concern in this regard, she stated, 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, CBN is 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.
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.
“I would also like to announce that we have achieved 94 percent month-on-month timely resolution of consumer issues”.
Results of an EFInA poll showed that 66 percent of respondents know the steps for lodging and escalating complaints, while 4 percent do not.
Also, 26 percent said failed transactions were reversed within 24 hours, while 54 percent reported reversals between 24 and 48 hours.
The poll further revealed that 61 percent of respondents experienced failed transactions in the past 12 months; 6 percent experienced fraud, 14 percent reported hidden charges, and 15 percent reported poor customer service.
President of the Consumer Advocacy Foundation of Nigeria (CAFON), Mrs. Sola Salako-Ajulo, said Nigerian consumers often feel unprotected and perceive the regulator as siding with service providers.
She advocated fraud insurance to ease the burden on customers in fraud-related disputes.
“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—unlike more developed economies—is fraud insurance.
“With such insurance, a bank can immediately reverse reported fraud, refund the consumer, and then complete its investigation. If it turns out not to be fraud, the consumer can then be held accountable,” she said
Speaking on dispute resolution between customers and merchants, Chairman of the Committee of e-Business Industry Heads (CeBIH), Mr. Ajibade Laolu-Adewale, represented by the Provost, CeBIH Academy/Group Head, eBusiness Sterling Bank, Mr. Adeyemi Salisu, said customers should not be directed back to merchants in cases of failed transactions.
“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,” he said.
