*The Central Bank of Nigeria reportedly directs Deposit Money Banks to get regulatory approval before changing their core banking software as part of measures to protect consumers of financial products and services from untold disruptions in banking operations over technology upgrades

Isola Moses | 绿帽献妻

Sequel to recent disruptions in banking services to millions of customers, the Central Bank of Nigeria (CBN) has directed Deposit Money Banks (DMBs) to get regulatory approval before changing their core banking software, close sources said.

绿帽献妻 reports the Bank’s directive is in response to the far-reaching impact of the ongoing technology changes by some of the major commercial banks in the country.

It is noted that in the last few months, at least four leading commercial banks have changed their core banking applications in Nigeria.

The changes, driven by costs and a need for customisation, have left millions of customers unable to access banking services for weeks, according to reports.

Hitherto, scores of corporate and individual bank customers and other consumers of financial products and services in the Nigerian banking ecosystem severally, had complained of service disruptions.

Checks indicated that other concerned bank customers even took to the social media space to voice their complaints, and share their banking service experiences amid the tech upgrades by the financial institutions.

When asked about the exact time to return to the bank to do some corporate online transactions, a female customer service executive in one of the affected banks recently told this publication that she would not know.

She firmly stated: 鈥淧lease call your account officer on phone to inform you of any update regarding the time the online banking services would be restored.鈥�

As these banks have assured the stakeholders they鈥檙e working to resolve the issues, the CBN intervention would intensify the pressure on them going forward, according to report.

One of the familiar sources affirmed “the CBN isn鈥檛 happy with how customers have been complaining about banks in the past couple of months. That鈥檚 why it is stepping in,” TechCabal report also said.

The CBN鈥檚 latest directive is also consistent with the Bankers’ Bank responsibility to protect consumers as the regulator, another person familiar with the matter reportedly noted.

CBN and application of Consumer Protection Regulations

It is recalled the Central Bank of Nigeria, February 2024, released a revised draft of the reviewed 2019 consumer protection regulations.

Banking experts and consumers, however, have questioned the regulator鈥檚 relatively long silence over the recent service disruptions, just as some expect the CBN to fine the affected banks like in other economies.

In 2012, Royal Bank of Scotland (RBS) was fined聽 拢56 million after a botched system upgrade left over 6 million customers unable to access their accounts, report stated

A banking expert who asked not to be named, also said: “I am still surprised that the CBN hasn鈥檛 taken regulatory action against any other banks. They should have fined them.”

One theory is that the delay in the CBN鈥檚 intervention was due to the absence of a specific regulatory framework for core banking platform changes, another person familiar with the matter reportedly said.

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