Shape up or Close up, CBN Warns Nigerian Banks

Nov 14, 2016

The warning issued by Central Bank of Nigeria is to strengthen financial services

Following nationwide complaints from customers about poor banking services at Automated Teller Machines (ATMs), Point of Sales (PoS) and other digital banking platforms due to network failure, the Director of Banking and Payment System Department of the CBN, Dipo Fatokun has issued a strong warning to Nigerian banks to upgrade their services or face sanctions from the Central Bank. As banks continue face turbulence due to Nigeria's current economic challenges, banks have continued to downsize which has affected services offered. Among other problems, customers are unable to update their accounts without going to the personal branches because the unified core banking system can no longer offer the upgrade. The CBN has described these lapses as unacceptable and urged all commercials bank to comply by upgrading their services to offer quality financial services to customers nationwide. "It is not acceptable and no bank should give such an excuse. It is a setback to the progress recorded in our payment system. Please report such bank and branch to CBN for necessary action," Fatokun said. Lack of skilled personnel and inefficiency of banking software have been observed to be some of the causes of this development. Since the beginning of economic recession, Nigerian banks have laid off more than 2,000 workers to reduce overhead costs.