FCCPC Endorses CBN’s 48-Hour Refund Plan to Protect Bank Customers

The Federal Competition and Consumer Protection Commission (FCCPC) has expressed strong support for the Central Bank of Nigeria’s proposed guideline mandating banks to refund customers for failed Automated Teller Machine (ATM) transactions within 48 hours.

According to the Commission, the move is a long-overdue step toward protecting consumers and restoring confidence in the financial sector, where complaints about failed or delayed transactions have been rampant.

A Needed Fix for Longstanding Complaints

The endorsement follows the CBN’s release of a draft guideline on ATM operations, which seeks to address persistent challenges faced by consumers in Nigeria’s electronic banking space. The FCCPC described the initiative as timely and consistent with its recent Consumer Complaints Data Report, which revealed that banks and fintechs accounted for the highest number of consumer grievances across all sectors.

Between March and August 2025 alone, more than 3,000 complaints were recorded against banks, according to the FCCPC. The Commission said it facilitated recoveries worth over ₦10 billion for customers across 30 sectors during the same period. The most common issues included failed transactions, unauthorised deductions, and prolonged refund delays, problems the new CBN directive aims to resolve.

The Commission’s Executive Vice Chairman, Tunji Bello, commended the CBN’s action as a decisive effort that aligns with consumer protection principles. He noted that the 48-hour refund rule could reduce customer frustration, strengthen accountability among financial institutions, and promote trust in Nigeria’s banking system.

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Reinforcing Consumer Confidence

The FCCPC also highlighted that the CBN’s proposal aligns with the Federal Competition and Consumer Protection Act (FCCPA) 2018, particularly the sections that empower the Commission to eliminate unfair practices, ensure resolution of consumer disputes, and uphold fair dealings in the market.

It stated that prompt adoption and enforcement of the 48-hour refund policy would bring immediate relief to consumers still struggling with unresolved transaction reversals. The Commission added that effective implementation would improve coordination between regulatory agencies and enhance oversight of financial services.

To guarantee compliance, the FCCPC said it would partner with the CBN to develop a monitoring framework to track how banks handle failed transaction refunds. This collaboration is expected to ensure customers receive redress quickly when banks fail to meet the refund deadline.

The Commission further noted that stronger inter-agency cooperation would reduce dispute resolution time, prevent recurring issues, and build consumer confidence in the country’s expanding digital payment system.

Nigeria’s electronic banking landscape has grown rapidly in recent years, with over 200 million cardholders and increasing reliance on ATMs and digital transfers. However, the sector has been plagued by poor network infrastructure, system glitches, and slow reversals that often leave customers stranded.

The new CBN guideline—expected to take effect before the end of the year after stakeholder feedback—is seen as a step toward improving service delivery, reducing disputes, and making the banking system more responsive to the needs of ordinary Nigerians.