In response to persistent complaints of failed customer transactions and concerns regarding the holding of reversed funds by commercial banks, the Federal House of Representatives has directed the Central Bank of Nigeria (CBN) to enforce timely reversals of funds by banks.
The resolution, adopted following a motion titled “Need to restrain commercial banks from holding funds reversal beyond the date prescribed by the Central Bank of Nigeria,” was brought by Hon. Emmanuel Ukpong-Udo, representing Ikono/Ini Federal Constituency, Akwa Ibom State.
Ukpong-Udo highlighted the CBN’s guidelines announced on June 8, 2020, specifying timelines for reversals and resolution of refund complaints, including instant reversal of failed “On-Us” ATM transactions and resolution of disputed POS or web transactions within 72 hours.
Expressing concern over the high rate of failed bank transactions, which accounted for over 69 percent of complaints in July 2023, the House emphasized the adverse impact on Nigeria’s financial sector and economy. It urged the CBN to direct banks to proactively address system glitches causing failed transactions and to ensure prompt reversal of customers’ funds within stipulated periods, regardless of customer complaints.
To address the issue comprehensively, the House mandated relevant committees to collaborate with the CBN and Nigeria Interbank Settlement System (NIBSS) to investigate the matter, propose solutions, and report back within four weeks for further legislative action.
This move by the Federal House of Representatives underscores the commitment to safeguarding the interests of consumers and promoting efficiency in Nigeria’s financial sector, ultimately contributing to the overall stability and growth of the economy.
