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Lawmakers Charge CBN to Address Electronic Fund Transfer Issues

CBN is saddled with the duty and responsibility of promoting a sound financial system in Nigeria.

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Trapped Funds

The issue of delayed and unsuccessful transactions on inter-bank transfer of funds is yet to be completely resolved and lawmakers are becoming interested.

Although Nigerian banks have been investing heavily in payment infrastructure to mitigate some of these hassles experienced by customers – It has recorded many successes in recent times, however, the challenge still remains recurrent. 

In 2019, the Central Bank of Nigeria (CBN) had to issue a circular to all the banks saying that any failed instant payment transaction not reversed into the customer’s account within 24 hours after a complaint by the sender will attract a fine of N10,000. 

Now, lawmakers are looking into the issue. On Wednesday, the members of the House of Representatives urged the CBN to address delays arising from instant (Inter-Bank) Electronic Funds Transfer Services in Nigeria.

Mohammed Bello, Lawmaker, All Progressives Congress (APC) from Kano at plenary moved a motion pursuant to Sections 2(d), 33(I)b), and 47(2) of the CBN Act, 2007, that the CBN is saddled with the duty and responsibility of promoting a sound financial system in Nigeria.

The Rep said that customers of financial institutions across the country have no adequate means of filing complaints and getting immediate resolutions on failed E-Funds transactions that occur on weekends and public holidays.

According to him, the CBN via a circular dated Sept. 13, 2018, issued a regulation on instant (Inter-Bank) Electronic Funds Transfer Services targeted at various payment platforms that seek to provide the service in Nigeria.

“The circular was directed at all Deposit Money Banks, Micro Finance Banks, Other Financial Institutions, Mobile Money Operators, Development Financial Institutions, Payment Service Providers, and other stakeholders within the financial institutions.

“The said circular was initiated to curb issues regarding delayed or failed transfer of funds, and the regulation also stipulated sanctions against banks and other financial institutions in the event of a failed or delayed electronic fund transfer.

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“Concerned that the regulations are not being complied with by banks and other financial institutions as issues regarding failed and delayed transfers are still very pronounced in Nigeria.

“Also concerned that the delays occasioned by sending and receiving entities with respect to E-Funds Transfer Services have resulted in untold misery to bank customers who depend on it for emergencies,” he said.

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Justice Okamgba functions as CONTENT STRATEGIST for TechEconomy.ng with penchant for content planning, development, analysis, management, and measurement. Contact: [email protected]

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