LEGAL REGIME FOR E-BANKING CUSTOMER PROTECTION 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 business. They have been using electronic and telecommunication devices to deliver a wide range of value to their products and services. Electronic banking includes the conduct of banking process of deposit, payment, 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 in the 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 examine the legal regime for e-banking in Nigeria. The paper also examined whether e-banking consumers in Nigeria are adequately protected when compared with international best practice. 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. 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 work 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 paper 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.