Following recent downturns in carrying out electronic transactions across all commercial banks’ platforms, the House of Representatives has urged the Central Bank of Nigeria (CBN) to direct all commercial banks in the country to immediately overhaul their existing online electronic banking platforms.
The cash crunch resulting from the implementation of the CBN’s naira redesign policy forced a shift to online banking that exposed the inefficiencies of the banking industry. Now, the House has reached a resolution, asking the central bank to initiate a reform that will effect efficiency and ease of conducting electronic banking operations.
The resolution was reached after the House adopted a motion moved by Hon. Sergius Ose Ogun, which called on the CBN to Direct all Commercial Banks to Overhaul their Online Banking Service Platforms to Ease Electronic Banking Operations.
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Ogun said Section 88 (1) and (2) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) empowers the National Assembly to conduct investigations into the activities of any authority executing or administering laws made by the National Assembly (like the Central Bank of Nigeria).
He indicated that the CBN, which was established under Section of the CBN Act, Cap. C4, Laws of the Federation of Nigeria, 2004, to promote a sound financial system, including the issuance of legal tender currencies in Nigeria, failed in its obligation in the wake of the naira redesign policy.
“Section 2 of the Central Bank of Nigeria Act saddles the Central Bank of Nigeria with the duty of promoting a sound financial system in Nigeria.
“In the wake of the recent naira redesign and cash withdrawal limit policy of the Central Bank of Nigeria, there has been an increase in the use of online and electronic banking services to carry out monetary transactions across the country.
“The use of online or internet banking services by Nigerians in the past three months or thereabout has been characterized by varying degrees of hitches ranging from unsuccessful electronic bank transfers, point of sale (POS) service failure and a host of others,” he said.
The inefficacy of electronic transactions across all banks as the cash crunch bites harder compounded the suffering the naira redesign policy brought on Nigerians.
Ogun said if nothing is done by the CBN and the commercial banks to address these difficulties or ineffectiveness, “Nigerians will continue to suffer untold hardships and loss of monies to unsuccessful electronic bank transactions.”
On Tuesday, the CBN governor Godwin Emefiele apologized to Nigerians over the failure of banks to deliver timely and efficient online transactions over the last three months.
He said: “I must apologize. Yes, online channels fail. But no doubt it is as a result of the deluge of online transactions that hit the banking industry. But it is being resolved.
“On a daily basis, our Payment System Management Department monitors the online payment platforms so as to make sure that when there is a downtime, they are quickly resolved so that transactions can go on smoothly.”
Many Nigerians have turned to neobanks for swift and reliable transactions due to the situation.