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Transfers Gone Missing: Nigeria’s frustrating digital bank transactions
Zulaiha Danjuma
Imagine expecting to receive payment for the goods you sold to a customer only to find that the significant amount of money never reached your bank account. For Malam Haruna Yau, a palm oil vendor in Kano State, Nigeria, this nightmare became a reality.
KANO FOCUS reports that, despite his initial skepticism about adopting electronic bank payments for his business, Haruna decided to open a bank account to receive payments from his customers.
However, he soon faced numerous challenges with vanishing funds due to network glitches causing discrepancies between customer transactions and his received payments.
“The major problem we have is the unpredictable network issues, which can be quite frustrating when trying to receive payments from customers,” Haruna explained. “Because of these network issues, we find ourselves going back and forth with customers on payments they say they made, which don’t reflect in my account. And in some cases, the money shows up much later.”
Malam Haruna Yau
One specific challenge Haruna faced was when he lost ₦19,000 due to network issues. “Just last week, I lost about ₦19,000. A lot of customers sent me money, but I didn’t receive the payments, even my neighbor selling next to me sent me some money, same thing,” Haruna said.
Haruna added, that this was one of the reservation he had about bank transfers but he knew he could not escape using the bank for his business due to the raise of technological advancement
He went further to explain that there are a lot of small vendors who still resist having bank accounts due to the fear of vanishing bank transfers
“It’s discouraging for vendors who are not banked hearing those of us who opened bank accounts complaining of our monies vanishing within banks” he said
Hajiya Rabi’a, a women’s clothing vendor, shared a similar story. She sent ₦5,000 to her brother on two separate occasions, but the funds never reached him.
“I thought it was a one-off issue, but when it happened again, I was shocked,” Rabi’a said. “I had to pay that money thrice.” She lamented.
According to industry players, the issues with vanishing interbank instant transfers often originate from the deposit banks themselves. The Central Bank of Nigeria (CBN) has implemented measures to address these challenges, including the Industry Dispute Resolution Platform.
“The CBN has been working tirelessly to address the challenges faced by customers,” said an industry expert. “The Industry Dispute Resolution Platform is a significant step towards resolving disputes and improving the overall customer experience.”
The CBN has also directed deposit money banks to resolve instant interbank disputes within three working days. Customers have the right to report any issues to the CBN and fill out a complaint form.
In addition, the CBN’s regulation on Instant Electronic Funds Transfers (EFT services) states that all instant interbank EFTs should take place within 1 minute (60 seconds). However, despite this protocol, deposit money banks have been seen falling short of upholding this right to customers.
According to data from the Nigerian Inter-Bank Settlement System (NIBSS), the volume of instant interbank transfers has increased significantly over the past year, with over 10 million transactions valued at over ₦10 trillion.
However, the same data also shows that the number of disputes and complaints related to untraceable funds has also increased, with over 10,000 complaints received by the CBN in the past quarter alone.
The impact of untraceable funds on individuals and businesses cannot be overstated. For Haruna, the loss of ₦19,000 was a significant blow to his business. “It’s not just about the money; it’s about the trust and confidence that customers have in the banking system,” Haruna said.
To address these challenges, the CBN has launched the Industry Dispute Resolution Platform, which is strictly for card and POS transactions. Banks have been mandated to report any single dispute to the platform.
“All banks are under obligation to report their dispute on the Industry Dispute Resolution System (IDRS) platform. This took off three months ago, so hopefully, customers should expect better services,” an industry source said.
While electronic bank payments offer convenience and efficiency, the challenges with vanishing funds cannot be ignored. As the CBN continues to work towards resolving these issues, customers must be aware of their rights and the measures in place to protect them.
_*To protect themselves from vanishing funds, customers can take the following steps:*_
– First, verify transactions with their banks
– Report any issue of bank non compliance to resolving the issue; by filling out a CBN complaint form about the banks non compliance
By taking these steps, customers can help ensure that their transactions are secure and that they receive the funds they are owed.
In the words of Haruna, “I believe that electronic bank payments are the future, but we need to address the challenges that come with it. As customers, we need our banking institutions to do better to serve us properly and protect our funds”.
_*This story is produced under the Digital Public Infrastructure (DPI) Fellowship of the Media Foundation for West Africa (MFWA) and Co-Develop in partnership with Kano Focus Newspaper online*_
…..Calls for More Development in Kano….
The Executive Governor of Kano State, Alhaji Abba Kabir Yusuf, has extended his warm congratulations to President Bola Ahmed Tinubu on the occasion of the New Year, 2025.
The Governors were at president’s residence in Lagos today (Wednesday 1st January, 2025) to join hudreds of highly placed Nigerians who celebrate him on the occassion of new year.
In a statement issued by the Governor’s spokesperson, Sunusi Bature Dawakin Tofa, Governor Yusuf joined his fellow governors under the leadership of the Chairman of the Nigeria Governors’ Forum, Dr. Abdulrazaq Abdulrahman, in celebrating the start of the new year and expressing hope for greater progress and development across the country.
The Governor used the opportunity to urge President Tinubu to channel more dividends of democracy to Kano State, emphasizing its status as one of Nigeria’s most populous and economically significant states.
He highlighted the need for enhanced infrastructural development, stressing that such investments would not only transform Kano but also contribute significantly to the nation’s overall economic growth.
Governor Yusuf also reaffirmed his administration’s commitment to working closely with the Federal Government to ensure that Kano residents benefit fully from governance, particularly in the areas of infrastructure, education, healthcare, and economic opportunities.
The Governor’s message reflects the aspirations of Nigerians for a prosperous 2025, with hopes for strengthened governance and the timely delivery of impactful projects across the country.
Nasiru Yusuf Ibrahim
Mari care foundation has honoured a philanthropist Dr Habib Nuhu who singlehandedly build ultra modern health facility in Aisami community, Gwale local government area, Kano state.
KANO FOCUS reports that the event was held on Wednesday at Aisami quarters, Gwale local government area.
Speaking shortly after presenting the appreciation letter the Executive Director Mari care foundation Mrs Ola Taiwo commended Dr Nuhu for the gesture which she said will go a long way in achieving universal health coverage, reducing maternal and child mortality, malaria, tuberculosis and HIV/AIDS.
She advised the community to pay attention to Gender Based Violence (GBV) and Human Right Violation (HRV) in order to protect women and children.
In his remark the Team lead of Mari care foundation Musa Muhammad Manga, described Dr Nuhu’s intervention as timely in view of the importance of access to healthcare services.
Manga tasked the community to take ownership of the facility and ensure that the project stand the test of the time.
Responding, Dr Habibu Nuhu expressed gratitude to God for the recognition accorded to him, and appealed to all and sundry to contribute their quota towards the development of their respective communities.
He pledged to complete the building which is now at 95% completion by first quarter of 2025.
Other dignitaries honored at the event includes the Head of Department (HoD) Health Gwale local government council, Sani Abdu Sanimainagge, the Incharge of the Health facility, Hajiya Salamatu Baffa Sule and chairman of Ward Development Committee (WDC) Aisami, Abubakar Yau.
… Pledges accelerated infrastructural growth, social empowerment and poverty alleviation in 2025
In line with standard appropriation plan, Governor Abba Kabir Yusuf has assented into law the budgetary allocation for 2025 fiscal year in the sum of N719, 755,417, 663.
Of the total budget size, the sum of N262, 670,660,562.68 representing 36 per cent dedicated to recurrent expenditure while the cumulative sum of N457, 804,757,100.32 which stands at 64 per cent would be spent on capital expenditure.
Signing the 2025 appropriation bill on Tuesday at the government House, Governor Yusuf declared that his administration is committed to full implementation of the new fiscal document.
In a statement by Governor’s spokesperson, Sanusi Bature Dawakin-Tofa, Governor renewed pledged to stimulate economic growth, quality education, functional healthcare development among other top priority in the 2025 budget.
Tagged budget of Hope, Human Capital and Economic Development, the Governor Yusuf explained plan to dedicate substantial allocation to social welfare and poverty alleviation through series of empowerment initiatives in the year 2025.
” Let me assured the good people of Kano of our commitment to improving lives of our citizens through investment generation, infrastructural development, poverty alleviation programmes. The 2025 budget is dedicated to stimulate economic growth.
” Our government is also committed to deliver quality healthcare services, agricultural growth and social welfare. We would implement the plan to build a prosperous and inclusive development in Kano”. Governor Yusuf pledged.
Speaker of Kano state House of assembly, Rt. Hon. Jibrin Ismail Falgore while submitting the passed bill for assent, notified the upward increase in the budget size after public hearing.
The speaker therefore called for full implementation of the budget as allocated to meet the yearnings and aspirations of the people of the state.
Recall that Gov. Yusuf, on 8th November 2024 presented a proposed budget size of N549, 160,417,663.00 before the state assembly for passage. The appropriation was readjusted by over N170 billion to capture other critical developmental needs.
The signing ceremony was witnessed by the deputy Governor, Comrade Aminu Abdulsalam, principal offocers of the State House of Assembly and few members of the state executive council.
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