House Calls on CBN for Swifter Resolution of Failed Transactions

• The House of Representatives calls on the Central Bank of Nigeria to prompt banks to enhance their systems
• They emphasize the importance of immediate reversal of failed transactions without requiring customer intervention

The House of Representatives has issued a call to action directed at the Central Bank of Nigeria (CBN), urging it to prompt banks to enhance their systems to minimize instances of failed transactions. Additionally, the House emphasized the importance of immediately reversing failed transactions without customer intervention.

This resolution, stemming from a motion presented by Hon. Emmanuel Ukpong–Udo during yesterday’s plenary session, underscores the need to prevent commercial banks from delaying fund reversals beyond the timeline specified by the CBN.

Ukpong–Udo highlighted statistics from the Nigeria Inter-Bank Settlement System Plc, indicating that a significant portion of the population, over 135,500,000 Nigerians, rely on banking services. He referenced a press release from the CBN dated June 8, 2020, which outlined revised timelines for transaction reversals and refund complaint resolutions.

According to Ukpong–Udo, the CBN’s resolutions include the instant reversal of failed “On-Us” ATM transactions and a shortened timeframe for refunds on failed “Not-on-US” ATM transactions. Furthermore, the resolution aims to expedite the resolution of disputed or failed POS and Web transactions.

Expressing concern over the impact of persistent transaction failures on Nigeria’s financial sector, Ukpong–Udo highlighted a significant portion of customer complaints, approximately 69% in July 2023, relating to failed transactions. He emphasized that the escalating rate of such failures adversely affects business investments and lending activities nationwide.

In response to these challenges, the House urged the CBN to direct banks to proactively address system issues contributing to failed transactions and ensure timely reversal of funds, regardless of customer complaints. Additionally, the House mandated relevant committees to collaborate with the CBN and Nigeria Interbank Settlement System (NIBSS) to investigate these issues and propose effective solutions.