CBN, NCC partner to create short code, enhance consumer complaints resolution

*The leadership of the Central Bank of Nigeria affirms its collaboration with the Nigerian Communications Commission to develop an industry short code that will enable consumers to reach their financial institutions anytime with or without Internet access from their locations

Isola Moses | ConsumerConnect

In view of the rapid transformation of the Nigerian financial landscape, now embracing both telecoms and banking sectors of the economy, the Central Bank of Nigeria (CBN) has disclosed its ongoing collaboration with the Nigerian Communications Commission (NCC) to create an industry-wide “short code” to enable consumers to communicate with their financial institutions anytime, anywhere, with or without Internet access.

ConsumerConnect reports Dr. Aisha Isa-Olatinwo, Director of Consumer Protection and Financial Inclusion Department at CBN, disclosed this at a recent virtual Consumer Protection Town Hall meeting.

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The Enhancing Financial Inclusion and Advancement (EFInA) organised the virtual forum with the theme, “Ask the Regulator”.

Explaining the rationale for the new collaborative effort at protecting consumers, Dr. Isa-Olatinwo said: “Given the rapid transformation of the Nigerian financial landscape—which now cuts across both telecoms and banking sectors—consumers often struggle to know where to lodge complaints.

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“Our major concern 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.”

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Underscoring the Bank’s commitment to protecting consumers in the economy, the CBN top official noted: “We are 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.

“We have also streamlined our processes, and partnered with banks, so we are seen as industry protectors.”

Isa-Olatinwo also stated: “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.”

Referencing recent results of an EFInA poll, the banking sector regulator said the findings indicated that 66 percent of respondents knew the steps for lodging and escalating complaints, while 4 percent did not.

According to Isa-Olatinwo, 26 percent of the respondents said failed transactions were reversed within 24 hours, while 54 percent reported reversals between 24 and 48 hours.

The poll further showed 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.

In her remarks during the virtual meeting, Mrs. Sola Salako-Ajulo, President of the Consumer Advocacy Foundation of Nigeria (CAFON), said consumers often felt unprotected and perceive the regulator as supporting service providers.

Salako-Ajulo, therefore, advocated fraud insurance to ease the burden on customers in fraud-related disputes in the country’s banking and financial space.

She also explained: “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.”

The President of CAFON stated: “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.”

Speaking on dispute resolution between customers and merchants also, Mr. Ajibade Laolu-Adewale, Chairman of the Committee of e-Business Industry Heads (CeBIH), represented by Mr. Adeyemi Salisu, Provost, CeBIH Academy/Group Head of eBusiness at Sterling Bank, as well said customers should not be directed back to merchants in cases of failed transactions.

Salisu asserted: “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.”

The expert noted: “Regulation already states that for every dispute, the two banks must engage and resolve it, so the consumer can be satisfied.”

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