Commercial E-Banking Revival: Why CBN Must Intervene

In view of the worsening e-transaction services from across the Nigerian commercial banks, the calls for urgent proactive measures keep pouring in.

There is no gainsaying the fact that this seeming 'new normal' has been birthed by CBN's surreptitious introduction of the cashless policy without proper feasibility studies and/or ameliorating structures in place.

So as things stand now, it is either the Central Bank of Nigeria (CBN) moves in swiftly and urgently to restore normalcy or an outright revert to the old normal is necessary.

Presently, businesses are collapsing, citizens are getting desperate, bankrupt, and restive, while the economy is smarting heavily.

To add to the mounting pressure for an urgent measure, the House of Representatives, on its part, has urged CBN to direct banks to immediately revamp their electronic transaction platforms. 

According to the House, the move has become necessary in the aftermath of the recent CBN policies, which have put pressure on online and electronic banking.

The CBN had set lower limits for cash withdrawal and redesigned the N1,000, N500, and N200 noted, policies that caused chaos in the country. 

A member of the House, Sergius Ogun, at the plenary on Thursday moved a motion demanding reinforcement and upgrade of banking systems, especially those of the Deposit Money Banks also known as commercial banks.

The motion was titled ‘Call on the Central Bank of Nigeria (CBN) to Direct All Commercial Banks to Overhaul their Online Banking Service Platforms to Ease Electronic Banking Operations.’ Moving the motion, Ogun noted that Section 88 (1) and (2) of the 1999 Constitution empowers the National Assembly to conduct investigations into the activities of any authority executing or administering laws made by the National Assembly, like the CBN.

The lawmaker also noted that the CBN was established under Section 1 of the Central Bank of Nigeria Act, Cap. C4, Laws of the Federation of Nigeria, 2004 to issue legal tender currencies in Nigeria.

He added that Section 2 of the CBN Act saddles the bank with the duty of promoting a sound financial system in Nigeria. 

“The House acknowledges that 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 House also acknowledges that 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 service failure, and a host of others. 

“The House is disturbed that the ineffectiveness or difficulty in using internet banking services across the online banking platforms of most commercial banks in Nigeria has brought untold hardship, suffering, and difficulties on Nigerians in the past three months.

“The House is worried that if nothing is done by the Central Bank of Nigeria 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.”

Adopting the motion, the House resolved to urge the CBN to “direct all commercial banks in the country to immediately overhaul their existing online/electronic banking platforms for efficiency and ease of conducting electronic banking operations.”

The House further mandated its Committee on Banking and Currency to ensure compliance with the resolutions and report back within four weeks for further legislative action.

Conclusion

A stitch in time saves nine as the saying goes.

Nigeria has sailed way too deep into this ocean of frustrating banking systems since the CBN's introduction of the now infamous cashless policy.

This means only the CBN needs to play a trump card (its own or not) for things to pick up again.

May it never go down history lane that the current CBN laid the foundations for the crumbling of the Nigerian economy.

This is why the CBN governor needs to rise to the occasion by urgently wearing as many hats as necessary to resolve this impasse.