- The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concerns over the continuous disruptions in online banking services across Nigeria.
- This comes as many Nigerian banks including Sterling Bank, Zenith Bank, Guaranty Trust Bank (GTB) and First Bank upgrade to a new banking application system.
- This has prevented customers from accessing their funds, making payments, and carrying out essential transactions, having a negative impact on millions and posing serious implications for both individuals and businesses.
The commission stated that when banks do not ensure access to essential financial services, they may fail to meet standards, which can lead to significant financial hardship, a loss of trust in the banking system, and damage to the overall economy.
It emphasised that during service disruptions, banks must keep customers fully informed about the cause, scope, and expected duration of issues. However, in this case, many consumers were left uninformed, increasing frustration and feelings of neglect.
The Federal Competition and Consumer Protection Act (FCCPA) 2018 highlights that bank customers have specific rights to guarantee fair and accountable service delivery. A key provision is the right to quality service, which mandates that all service providers, including banks, maintain acceptable levels of functionality and reliability.
“At a time when Nigeria’s economy is increasingly cashless, online banking is no longer a mere convenience but a necessity. Interruptions that impede consumers from engaging in transactions or accessing essential funds are not only an inconvenience, but they may also be a violation of this right,” FCCPC said in a statement.
Meanwhile, since consumers can seek redress for services that do not meet required standards, the commission noted that it is reviewing the situation to evaluate whether consumers’ rights to redress are being upheld and to determine if additional action is necessary to ensure accountability.
It also acknowledged working with relevant regulatory authorities, financial institutions, and stakeholders to address these disruptions and ensure the protection of customers.
FCCPC assures affected bank customers their concerns are taken seriously and urges banks to restore services swiftly, prioritize support, and improve communication to manage expectations responsibly.
The rise in digital payments and demand for improved IT infrastructure has driven many Nigerian banks to adopt new core banking applications over the past three months.
Sterling Bank reportedly transitioned from the Switzerland-based Temenos T24 system to an indigenous solution, SeaBaaS, developed by Peerless, with the upgrade occurring from August to September.
Similarly, Zenith Bank announced routine maintenance of its IT infrastructure on September 28, and by October 3, apologised for service disruptions, noting significant progress. On October 23, it notified customers of the completed upgrade.
While this move is aimed towards upgrading infrastructures that could improve banking services, customers have continued to suffer service disruption.
