CBN prioritises customer protection as banks refund billions to customers
By Esther Agbo
In the first year of Olayemi Cardoso’s leadership as Governor of the Central Bank of Nigeria (CBN), a renewed emphasis on customer protection and transparency within the banking sector has led to significant refunds to customers.
Banks operating in Nigeria refunded approximately N7.05 billion and $714,569.03 to customers, following the CBN’s intervention in resolving disputes with financial service providers.
This development was revealed in the CBN’s September Special Edition of its monthly bulletin, highlighting the achievements of the Cardoso-led team.
The bulletin underscored the CBN’s proactive efforts in addressing customer grievances, with over 19,988 complaints processed in just eight months.
The bulletin noted, “In just one year, they have addressed 19,988 customer complaints within eight months. Of these,15,306 complaints representing 76.58 percent were successfully resolved.
“During this time, the bank facilitated refunds totalling approximately N7.05 billion and $714,569.03 to customers in disputes with financial service providers, underscoring its commitment to fair treatment.
“The CBN has also rigorously enforced sanctions to ensure compliance, deter unethical behaviour, and enhance transparency within the financial sector.”
The bulletin also spotlighted the CBN’s aggressive actions in response to Nigeria’s greylisting by the Financial Action Task Force (FATF) in 2023. Under Cardoso’s leadership, the CBN intensified its anti-money laundering from October 2023 to September 2024 and cybersecurity protocols.
The bulletin continued, “It enhanced supervision and conducted spot checks on Nigerian banks and their foreign subsidiaries to expedite Nigeria’s removal from the Financial Action Task Force (FATF) Grey List.
“These efforts aim to create a more secure investment environment, attract foreign investment, and bolster Nigeria’s global financial reputation.”
One of the hallmark policies under Cardoso’s tenure has been the introduction of new minimum capital requirements for banks.
In a bid to strengthen the financial sector, commercial banks with international authorisation must now maintain a capital base of N500 billion, while those with national authorisation are required to hold N200 billion. Regional banks must meet a threshold of N50 billion.
The CBN also reported approving new licences for microfinance institutions and commercial banks, with one merchant bank transitioning to a national commercial bank.
Additionally, five new finance companies and 16 microfinance banks were licensed, while 53 previously revoked microfinance bank licences were reinstated.
However, despite these regulatory successes, inflation remains a significant challenge.
The CBN’s monetary tightening measures, including six consecutive interest rate hikes since February 2024, have had mixed results. While inflation slowed in July and August 2024 for the first time in over a year, recent data from the National Bureau of Statistics showed that it rose slightly to 32.70 per cent in September, up from 32.15 per cent in August.
