CBN FACILITATES N7.05BN AND $714,569 REFUND TO CUSTOMERS AS PART OF CONSUMER PROTECTION DRIVE
Breakdown of the News:
1. Consumer Protection and Refunds:
The Central Bank of Nigeria (CBN) announced that Nigerian banks have refunded a total of N7.05 billion and $714,569 to customers. This action followed intervention by the CBN in response to customer complaints against financial institutions.
The refund details were shared in the September Special Edition of the CBN Monthly Bulletin, which highlighted CBN's efforts in safeguarding consumer rights.
2. Resolving Customer Complaints: Within one year under Governor Olayemi Cardoso, the CBN addressed 19,988 customer complaints.
Of these, 76.58% (15,306 cases) were resolved, showing a strong commitment to customer fairness and dispute resolution.
3. Efforts to Strengthen Banking Compliance: In addition to resolving disputes, the CBN enforced sanctions on banks to ensure ethical conduct and improve transparency across the sector.
4. Anti-Money Laundering and Greylist Concerns: Nigeria’s greylisting by the Financial Action Task Force (FATF) earlier in 2023 spurred the CBN to intensify its anti-money laundering and cybersecurity initiatives. The apex bank conducted spot checks on Nigerian banks to boost the country's global financial standing and attract foreign investments.
5. New Capital Requirements for Banks:
In the first year of Cardoso's leadership, the CBN also raised the minimum capital requirements for different categories of banks:
Commercial Banks (International): N500 billion
Commercial Banks (National): N200 billion
Regional Banks: N50 billion
6. Licensing and Approvals:
CBN has granted approvals for several financial institutions, including:
Transition of a merchant bank into a national commercial bank.
Licensing 16 new microfinance banks and reinstating 53 revoked licenses.
Issuance of new finance company approvals.
7. Efforts to Tackle Inflation: Despite efforts through monetary tightening measures and six consecutive rate hikes, inflation remained high. Although the inflation rate initially decelerated in mid-2024, it surged to 32.70% in September.
This detailed breakdown reflects the CBN's focus on both protecting consumers and stabilizing the broader financial system.
Breakdown of the News:
1. Consumer Protection and Refunds:
The Central Bank of Nigeria (CBN) announced that Nigerian banks have refunded a total of N7.05 billion and $714,569 to customers. This action followed intervention by the CBN in response to customer complaints against financial institutions.
The refund details were shared in the September Special Edition of the CBN Monthly Bulletin, which highlighted CBN's efforts in safeguarding consumer rights.
2. Resolving Customer Complaints: Within one year under Governor Olayemi Cardoso, the CBN addressed 19,988 customer complaints.
Of these, 76.58% (15,306 cases) were resolved, showing a strong commitment to customer fairness and dispute resolution.
3. Efforts to Strengthen Banking Compliance: In addition to resolving disputes, the CBN enforced sanctions on banks to ensure ethical conduct and improve transparency across the sector.
4. Anti-Money Laundering and Greylist Concerns: Nigeria’s greylisting by the Financial Action Task Force (FATF) earlier in 2023 spurred the CBN to intensify its anti-money laundering and cybersecurity initiatives. The apex bank conducted spot checks on Nigerian banks to boost the country's global financial standing and attract foreign investments.
5. New Capital Requirements for Banks:
In the first year of Cardoso's leadership, the CBN also raised the minimum capital requirements for different categories of banks:
Commercial Banks (International): N500 billion
Commercial Banks (National): N200 billion
Regional Banks: N50 billion
6. Licensing and Approvals:
CBN has granted approvals for several financial institutions, including:
Transition of a merchant bank into a national commercial bank.
Licensing 16 new microfinance banks and reinstating 53 revoked licenses.
Issuance of new finance company approvals.
7. Efforts to Tackle Inflation: Despite efforts through monetary tightening measures and six consecutive rate hikes, inflation remained high. Although the inflation rate initially decelerated in mid-2024, it surged to 32.70% in September.
This detailed breakdown reflects the CBN's focus on both protecting consumers and stabilizing the broader financial system.