Revealed! Nigerian banks refund N7bn to customers as CBN intervenes

• Approximately N7.05 billion and $714,569.03 have been reportedly restored to customers by institutions across the country
• Olayemi Cardoso, the governor of CBN, and his staff have made protecting their clients' rights a top priority
• In the first year of the Cardoso-led administration, the CBN issued new minimum capital requirements for banks

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The Central Bank of Nigeria has stated that following its intervention, banks in the nation have returned around N7.05 billion and $714,569.03 to their customers.

Olayemi Cardoso and his team have prioritized safeguarding the rights of their customers. Photo Credit: CBN, Contributor
Source: Getty Images

In just one year, the apex bank said it addressed 19,988 customer complaints within eight months.

This was revealed on Tuesday in the CBN UPDATE September Special Edition, the apex bank's monthly bulletin that was posted online.

This came amid a recent report that the Central Bank of Nigeria (CBN) has urged banks in the country to protect depositors' money from hackers

The CBN governor Olayemi Cardoso said this amid concerns following announcement of service disruptions and system updates by Nigeria banks.

Cardoso prioritises customers’ right

In addition to their other responsibilities, Olayemi Cardoso and his team have prioritized safeguarding the rights of their customers, according to the scorecard shared on the first anniversary of Cardoso's appointment as Central Bank governor.

It noted,

“In just one year, they have addressed 19,988 customer complaints within eight months. Of these, 15,306 complaints—representing 76.58 per cent—were successfully resolved.“During this time, the bank facilitated refunds totalling approximately N7.05bn and $714,569.03 to customers in disputes with financial service providers, underscoring its commitment to fair treatment. The CBN has also rigorously enforced sanctions to ensure compliance, deter unethical behaviour, and enhance transparency within the financial sector.”

Recall that in September 2023, Cardoso was nominated by President Bola Tinubu to be the new governor of the Central Bank of Nigeria for a five-year term at the first instance, pending Senate approval.

The CBN stated that it has stepped up its anti-money laundering, counterterrorism financing, and cybersecurity efforts between October 2023 and September 2024 in response to the Financial Action Task Force's greylisting of Nigeria earlier in 2023.

To hasten Nigeria's removal from the Financial Action Task Force's (FATF) Grey List, it also strengthened oversight and carried out spot checks on Nigerian banks and their overseas subsidiaries. These initiatives seek to improve Nigeria's international financial standing, draw in foreign investment, and establish a more secure investment climate," the bulletin stated.

New minimum capital requirements for banks were announced by the CBN in the first year of the Cardoso-led administration.

The minimum capital base for commercial banks with international authorisation was set at N500bn, while those with national authorisation were set at N200bn.

For commercial banks with international authorisation, the required capital base was N500 billion, but for institutions with national authorisation, it was N200 billion. The new requirement for regional banks was pegged at N50bn.

Efforts to curb inflation

But coordinated attempts to use monetary tightening measures to reduce inflation—which was brought on by an excess of money supply—have not yet produced long-lasting results.

Since Cardoso's first Monetary Policy Committee meeting in February 2024, the CBN has adopted an aggressive posture to reduce excessive inflation levels, hiking the monetary policy rate one after the other.

In July and August of 2024, the nation's inflation rate slowed for the first time in 19 months following six straight rate hikes.

But according to data from the National Bureau of Statistics, which was made public on Tuesday, inflation increased from 32.15 percent in August to 32.70 percent.

World Bank praises CBN Governor Yemi Cardoso's policies

Legit.ng reported that Indermit Gill, the World Bank Vice President and Chief Economist, has supported Central Bank Governor Olayemi Cardoso’s foreign exchange unification policy.

Gill also commended the CBN governor for his approach to managing inflation, pointing out that increasing interest rates by over 800 basic points in the last nine months was the right direction.

Gill made these remarks while speaking at the 30th Nigerian Economic Summit in Abuja on Monday, October 14, 2024.

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Source: Legit.ng