ENFORCEMENT OF E-BANKING CUSTOMER/CONSUMER RIGHTS IN NIGERIA

Abstract

Banks have commonly been at the forefront of harnessing technology to improve their products and services because of the diversity of their customers as well as the sophisticated nature of their businesses. They have been using electronic and telecommunication w deliver a wide range of value added products and services. Electronic banking encompasses the conduct of banking process of deposits, payments, payment confirmation and enquires through the use of electronic medium. Electronic banking may be defined as a means whereby banking business is transacted using automated process and electronic devices such as personal computer, telephones, fax machines, Internet card payments and other electronic channels. Electronic banking in Nigeria has raised a number of consumer protection issues. Despite the legislative developments and interventions in this area, the Nigeria banking industry is characterized by consumer exploitation. This includes unrealistic and hidden charges, unjustifiable deductions Automated Teller Machine (ATM) deductions without dispensing cash to the customer, slow complaint handling and redress mechanisms etc. This paper examined the legal framework for the protection of electronic banking customers in Nigeria and specifically analyzed the legal regime for e-banking in Nigeria. The enforcement of e-banking consumer rights and redress of consumer complaints in Nigeria was also appraised. The paper observed that a lot needs to be done in the area of financial literacy and consumer education as most Nigerians are ignorant of their rights and the enforcement mechanism of pursuing their rights. E-banking consumers in Nigeria face a number of challenges in the enforcement of their e-banking consumer rights which includes difficultly in proof of electronic signature, loss of audit trail, jurisdictional issues, illiteracy, lack of expert witnesses and delay in litigation. The CBN Consumer Protection Regulation failed to state the timeline within which e-banking complaints which may have escalated to the CBN Consumer Protection Department may be resolved. The researcher recommended among others that the CBN Consumer Protection Regulation 2019, be amended to include a timeline for CBN Consumer Protection Department to resolve consumer complaints. The research also recommended the establishment of an independent body regulated by law and supervised and administered by stakeholders in the banking industry that will ensure that banks comply with the provisions of the Consumer Protection Regulation of the CBN and also handle resolution of consumer complaints.