The Federal Competition and Consumer Protection Commission (FCCPC) has expressed its support for the Central Bank of Nigeria’s (CBN) draft guidelines, which mandate banks to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours. This development follows the publication of the Consumer Complaints Data Report by the FCCPC in September.
According to Ondaje Ijagwu, Director of Corporate Affairs at the FCCPC, the proposal is a “timely and long-awaited correction” to a persistent consumer challenge. The FCCPC’s Executive Vice Chairman, Tunji Bello, commended the CBN for taking this decisive step, which is expected to ease the burden on consumers and rebuild trust in financial services.
The draft guideline aligns with the provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018, specifically sections 17(g), (h), (l), (s), and (t), which emphasize the elimination of unfair practices and the promotion of fair dealings. The FCCPC believes that the timely adoption of these guidelines will reinforce accountability within the banking sector and demonstrate a shared regulatory commitment to fairness, efficiency, and consumer confidence.
Under the proposed framework, banks are required to provide instant refunds for failed ATM transactions. If a customer uses their own bank’s ATM and the transaction fails, it must be reversed instantly. In cases where instant reversal is not possible due to technical issues, the transaction must be manually corrected within 24 hours. For “not-on-us” transactions, where customers use another bank’s ATM, the maximum refund window is set at 48 hours.
The FCCPC has pledged to work with the CBN to establish systems for monitoring compliance and ensuring timely redress when banks fail to meet the 48-hour deadline. This collaboration is expected to lead to faster resolutions, prevent recurrences, and strengthen consumer confidence in Nigeria’s growing digital economy. The introduction of these guidelines is a significant step towards strengthening consumer protection and improving service reliability in the country’s financial system.
