CBN, NCC Propose New Banking Transaction Short Code; Reason Emerges

‎The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) are set to launch a new universal short code aimed at addressing the various complaints associated with banking transactions in Nigeria.

This initiative seeks to establish a more accessible and efficient mechanism for resolving issues faced by bank customers, regardless of their internet connectivity status. By implementing this short code, the objective is to enhance financial inclusion, particularly for individuals who may lack access to smartphones or reliable internet service.

Customers will be empowered to reach out to their banks and address grievances simply by dialing a designated short code, thus minimizing the need for in-person visits to bank branches.

Dr. Aisha Isa-Olatinwo, the Director of Consumer Protection and Financial Inclusion at the CBN, emphasized the existence of a digital divide that often prevents many customers from effectively resolving banking-related issues. The introduction of the universal short code will promote inclusivity by ensuring all customers have equitable access to complaint resolution options.

As part of this initiative, the CBN has reinforced its consumer complaint management framework and enhanced its collaboration with deposit money banks, which play a crucial role in safeguarding the financial system.

The CBN reports encouraging progress in consumer complaint resolution, with a notable resolution rate of approximately 94 percent within one month of submission, demonstrating improvements in efficiency and accountability.

‎Recent findings from a poll conducted by Enhancing Financial Inclusion and Advancement (EFInA) reveal significant consumer pain points.
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‎The survey indicated that 61 per cent of respondents encountered failed transactions over the past year, while 66 per cent were aware of the procedures for lodging and escalating complaints.
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‎On transaction reversals, 26 per cent of respondents received refunds within 24 hours, with 54 per cent experiencing delays of 24 to 48 hours. The poll also identified issues such as fraud (6%), hidden charges (14%), and poor customer service (15%).
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‎Consumer rights advocates have called for more robust protection measures. Mrs. Sola Salako-Ajulo, President of the Consumer Advocacy Foundation of Nigeria (CAFON) expressed concerns that consumers often perceive regulators as favoring service providers.
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‎She proposed the implementation of fraud insurance to facilitate prompt refunds in disputed cases, temporarily shifting the burden of proof from consumers during investigations.
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‎Meanwhile, representative of the Committee of e-Business Industry Heads (CeBIH), Mr. Adeyemi Salisu, clarified procedures for failed transactions, emphasising that customers should not be redirected to merchants.
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‎He noted that the responsibility for resolving such disputes lies with the acquiring and issuing banks, who must collaborate to ensure timely and satisfactory outcomes for customers.