Failed transactions and poor dispute resolution are crippling Nigeria’s bank transaction system, leaving many citizens financially frustrated. This report by WikkiTimes uncovered the flaws in the system and highlighted the human and economic toll through the experiences of some victims who shared their ordeal.
Ashiodolo Obafashola, a resident of Lagos is one of many Nigerians enmeshed in the riddle of unresolved bank transaction disputes.
On September 12, 2024, he attempted to purchase fuel at a petrol station in Akure, Southern Nigeria, but the transaction failed, leaving him debited with N34,750.
For two months, he drove between his bank, Access Bank, the petrol station, and the Point of Sale (POS) merchant’s bank Providus Bank with no resolution in sight. Frustrated, he posted on X (formerly Twitter) to ask: “Who is responsible for failed POS reversal?” demanding an answer from the Central Bank of Nigeria (CBN), the country’s apex financial institution.
Nigeria’s push towards a cashless economy has transformed digital interbank transactions into a mainstay of the financial system.
Yet, this transformation has left a trail of unresolved issues, undermining public trust in the system.
Failed transactions and ineffective dispute resolutions are common complaints, leaving millions of Nigerians drained and financially strained.
WikkiTimes’ findings revealed that the systemic defects especially in interbank transactions inflict deep human and economic damage to the victims.
The Struggles of Everyday Nigerians
From business owners left stranded due to unresolved reversals to rural traders hesitant to embrace digital payments out of distrust, the human pain is apparent.
Behind every failed transaction is a person confronted with suffering, a small business struggling to make ends meet, or a family unable to access their hard-earned money.
The flaws in the system threaten not just the financial stability of individuals but also Nigeria’s goal of financial inclusion in a cashless economy.
These challenges are far-reaching, touching lives as individuals across the country share similar stories of failed transactions and their delayed resolutions.
For instance, Obafashola’s experience replicates that of Salihu Adam, a local businessman in Bauchi, Northern Nigeria.
For Adamu, 2023 was supposed to mark a new chapter of financial inclusion for him.
Convinced by friends to move away from the traditional practice of saving cash at home, Adamu opened his first bank account with Guaranty Trust Bank otherwise known as GTBank, hoping for security and convenience. Instead, it became a source of frustration for him.
Adamu attempted to transfer N85,000 to his daughter, who was anxiously waiting to pay her school fees.
He made the transaction through a First Bank Point of Sale (POS) merchant, confident that the funds would be delivered quickly. However, the money never reached her.
“The money left my account, but it never arrived,” Adamu told WikkiTimes, standing in a long queue at a GTBank branch in Bauchi. “I’ve spent over three weeks going back and forth between the POS agent and the bank. I lost trust in this system.”
He said the delay in resolving the issue put his daughter’s education on hold, a similar challenge many Nigerians face with electronic banking.
For Adamu, the dream of digital inclusion in the country has turned into a nightmare. “What is the purpose of using banks if they cannot guarantee your money is safe and available when you need it?” he asked.
His experience has made him question whether the transition to digital finance is worth the challenges.
Tinu Adesugba, another victim, asked a question that many asked and many could not answer. “How can it take almost three months for the bank to reverse a failed transaction?”
Besides Tinu, Oluwole Mayungbo is also a victim of the weak system. The customer, after reporting a failed transaction on October 4, 2024, faced conflicting updates from her bank, Kuda Bank.
Despite follow-ups, her issue remained unresolved, leading her to threaten “alternative steps” if her money was not recovered.
“Since Oct 4, I’ve reported a failed transaction, and despite follow-ups, there has been no resolution. The beneficiary confirmed the payment didn’t go through, yet your team claims it’s resolved. Frustrating.
“As a bank, it’s your responsibility to track & confirm the payment status. Receiving conflicting updates while the issue remains unresolved is disappointing,” she shared on her X account.
In 2018, regulatory policies by the CBN mandated that banks refund failed transactions within 24 hours, with a fine of N10,000 for non-compliance.
In another recent directive, the apex bank warned the financial centres that delays in responding to customer complaints would attract a fine of N100,000 per day if they fail to address the complaints within 72 hours.
According to the CBN, the directive was aimed to ensure quicker resolution of issues.
However, the persistence of unresolved cases raises questions about enforcement and accountability in the CBN’s commitment to addressing the issue.
Regulatory Gaps and Weak Enforcement
The Nigerian government, through the CBN, has introduced several policies, including the Regulation on Instant Interbank Electronic Funds Transfer Services to mandate swift refunds for failed transactions.
However, the high volume of complaints suggests weak enforcement and oversight.
The absence of stringent accountability measures enables banks to operate with impunity while customers often bear the brunt of these inefficiencies.
These challenges undermine Nigeria’s financial inclusion drive with small business owners and low-income individuals so affected, deterring them from fully adopting digital financial services.
The Central Bank of Nigeria (CBN) did not respond to a letter of inquiry sent by WikkiTimes seeking comments on the issue.
Despite repeated attempts to reach the apex bank through official communication channels, no response was received.
A Way Out
Yahaya Ahmed, a financial analyst, said digital transactions hold immense potential to drive financial inclusion and economic growth in Nigeria, maintaining that systemic flaws and weak accountability mechanisms continue to erode public trust.
To address the challenges, he said banks must invest in modern infrastructure to improve transaction reliability and speed.
Other key measures he identified were technological upgrades to reduce delays and handle increasing transaction volumes effectively.
For him, a customer-centric approach is equally critical, with financial institutions focusing on enhancing customer experience faster and more transparently.
Yahaya emphasised that such efforts would help Nigeria attain its cashless economy and foster greater financial inclusion.
This report is produced under the DPI Africa Journalism Fellowship Programme of the Media Foundation for West Africa and Co-Develop.
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