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Order electronic banking platforms overhaul, Reps tells CBN

House of Representatives

The Nigerian Central Bank has been urged by the House of Representatives to order banks to immediately modernize their electronic transaction platforms.

The House claims that the recent CBN regulations, which have put pressure on online and electronic banking, have made the move inevitable.

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The CBN implemented policies that produced instability in the nation by lowering the cash withdrawal thresholds and redesigning the N1,000, N500, and N200 notes.

Sergius Ogun, a member of the House, moved a motion demanding the upgrading and reinforcement of financial systems, particularly those of the Deposit Money Banks, commonly known as commercial banks, during the House’s session on Thursday.

Calling on all commercial banks to overhaul their online banking service platforms to make electronic banking operations easier was the motion’s slogan.

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Ogun, who proposed the motion, pointed out that Sections 88(1) and (2) of the 1999 Constitution give the National Assembly the authority to look into the operations of any organization responsible for carrying out or overseeing the administration of laws passed by the National Assembly, such as the CBN.

The lawmaker also mentioned that the CBN was established to issue legal tender currencies in Nigeria under Section 1 of the Central Bank of Nigeria Act, Cap. C4, Laws of the Federation of Nigeria, 2004. He continued, citing Section 2 of the CBN Act, which charges the bank with the responsibility of fostering a stable financial system in Nigeria.

“The House notes that there has been an increase in the usage of online and electronic banking services to conduct monetary transactions across the country in the aftermath of the recent naira redesign and cash withdrawal limit policy of the Central Bank of Nigeria,” he said.

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The House also understands that Nigerians have had a variety of difficulties using online or internet banking services during the previous three months or more, including unsuccessful electronic bank transfers, point-of-sale service failures, and a plethora of other issues.

The House is troubled by the fact that, over the past three months, Nigerians have experienced immeasurable pain, suffering, and problems due to the inefficiency or difficulty of using internet banking services across the online banking platforms of major commercial banks in Nigeria.

Ogun continued, “The House is concerned that Nigerians will continue to experience unspeakable sufferings and loss of money due to unsuccessful electronic bank transactions if nothing is done by the Central Bank of Nigeria and the commercial banks to solve these challenges or ineffectiveness.”

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The House adopted the motion and decided to ask the CBN to “order all commercial banks in the country to promptly remodel their current online/electronic banking systems for efficiency and simplicity of performing electronic banking activities.”

The House also ordered the Committee on Banking and Currency to monitor adherence to the resolutions and submit a report within four weeks to prompt additional legislative action.

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