The House of Representatives, in a directive issued on Tuesday, instructed the Central Bank of Nigeria (CBN) to ensure that commercial banks adhere to timelines specified by the apex bank for the reversal of customers’ funds.

This decision came following the adoption of a motion titled “Need to restrain commercial banks from holding funds reversal beyond the date prescribed by the Central Bank of Nigeria,” introduced by Emmanuel Ukpong-Udo, representing Ikono/Ini Federal Constituency, Akwa Ibom State.

The lawmaker pointed out that on June 8, 2020, the CBN issued a statement detailing timelines for reversals and resolution of refund complaints, which included Failed “On-Us” automated teller machines transactions being “instantly reversed from the current timeline of three days.”

He also noted that “Where instant reversal fails due to any technical issue or system glitch, the timeline for manual reversal shall not exceed 24 hours; refunds for failed ‘Not-on-US’ ATM transactions (where customers use their cards on other banks’ ATM) shall not exceed 4 per cent hours from the current 3-5 days.

“Resolution of disputed/failed POS or web transactions shall be concluded within 72 hours from the current five days,” stressing that “All banks are directed to resolve the backlog of all ATM, POS, and web customer refunds within two weeks starting June 8, 2020.”

During the debate, the lawmaker expressed concern over the significant issues in Nigeria’s financial sector, citing a high volume of complaints about failed customer transactions, a rise in failed banks, and the resulting decrease in business investments and lending activities nationwide.

In response, the House called on the CBN to instruct banks to upgrade their systems to handle failed transactions proactively, without the need for customer complaints.

Additionally, the House reiterated its commitment to protecting the public’s financial interests by urging the apex bank to direct banks to promptly reverse customers’ funds within the stipulated periods.

As part of the resolution, the House mandated relevant committees to collaborate with the CBN and Nigeria Interbank Settlement System to address the issues, propose solutions, and report back within four weeks for further legislative action.