The Central Bank of Nigeria (CBN) has assured that the planned Consumer Protection Framework (CPF) for banks and other financial institutions will drive the unbanked to the banking and boost the confidence of existing customers.
Currently, over 55 per cent of Nigerian population of 182 million are said to be unbanked.
Explaining more on the new idea, Director, Consumer Protection Department at CBN, U. A. Dutse, said the programme will among other things guarantee high standards for efficient customer service delivery, market discipline and ensure that consumers are treated fairly by all financial institutions.
He said “It shall form the bedrock for establishment of a virile consumer protection regime in the industry, thereby enhancing financial inclusion and ultimately a stable financial system”.
Preliminary details gathered from the CBN said CPF defines the direction of CBN on consumer protection and would lead to the development of various regulatory/supervisory instruments that would aid the achievement of the overall objective, the document says.
Key strategy for the implementation include partnering with stakeholders to facilitate the protection of consumer rights; stakeholders such as the Consumer Protection Council, Bankers’ Committee, and some other relevant Government agencies.
This is based on the position of the apex bank that appropriate measures shall be established by financial institutions to guarantee protection of consumer assets and privacy, covering primary areas such as fraud and data privacy.
Among the major provision of the document that will interest customers say that “financial institutions shall establish policies and controls to safeguard consumer assets against fraud. These policies and protocols may include the use of sophisticated software and transaction monitoring systems to monitor the internal processes/operations of financial institutions.”
Regarding the safety of electronic payment, the CBN document requires that “electronic payment instruments/systems shall be embedded with safety mechanisms; institutions shall ensure regular systems updates to guard against possible security lapses. The CBN shall specify minimum technology standards for payments platforms.”
