Headlines
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*_
Nasiru Yusuf Ibrahim
The Kano State Government has uncovered irregularities in the payroll system of local government councils, as no fewer than 247 staff members were discovered to have either retired from service or died.
KANO FOCUS reports that the discovery revealed that the names of the affected local government staff have been appearing in the payroll and their salaries are running.
A statement by the Press Secretary, Office of the Secretary to the State GovernmenMusa Tanko Muhammad, said these fraudulent salary payments amount to a sum of ₦27,824,395.40 for March 2025 alone.
“In a decisive move towards cleansing the state payroll, the Kano State Government has recorded a major milestone in its ongoing efforts to reform the salary administration system within the state civil service.
“Arising from the validation exercise, a disturbing irregularity was uncovered within the payroll system of local government councils.
“The findings revealed that 247 individuals have either retired from service or died yet, have been appearing in the payroll and their salaries running. These fraudulent salary payments amount to a sum of ₦27,824,395.40 for the month of March, 2025 alone.
“In a prompt and effective response and while further due diligence is being conducted to determine the extent of this apparent fraud and the perpetrators, the amount has been recovered and returned to the Local Government Treasury,” the statement said.
According to the statement, the recovery underscores the administration’s dedication at entrenching governance, transparency, and responsible management of public resources.
“The government remains resolute in its commitment to purging the payroll system of irregularities.
“Individuals found to be involved in this fraudulent activity will be identified and held fully accountable in accordance with the law,” the statement added.
Mukhtar Yahya Usman
Kano State Governor, Alhaji Abba Kabir Yusuf, has signed into law four landmark bills that establish new agencies designed to strengthen institutional frameworks and accelerate sustainable development across the state.
The announcement was made in a statement issued on Thursday by the Governor’s spokesperson, Sunusi Bature Dawakin Tofa.
The newly signed laws provide for the establishment of the following agencies:
1. Kano State Protection Agency (KASPA)
2. Kano State Signage and
Advertisement Agency (KASIAA)
3. Kano State Information and Communication Technologies Development Agency (KASITDA)
4. Kano State Small and Medium Enterprises Development Agency (KASMEDA)
These laws, which are now part of the Kano State legal framework, are expected to stimulate innovation, support small businesses, regulate signage and advertising, and enhance public protection and service delivery.
Governor Yusuf described the signing as a significant step toward realizing his administration’s vision of a modern, inclusive, and economically vibrant Kano.
He emphasized that the new agencies will play a crucial role in job creation, investment attraction, and the efficient implementation of government initiatives.
“Our mission is to lay a solid foundation for a greater Kano. These laws go beyond policy — they are key instruments of transformation that will help drive our development agenda,” the Governor stated.
He also issued a strong warning that violations of the provisions of these laws will be met with strict penalties, reaffirming his administration’s commitment to upholding the rule of law and ensuring compliance.
The establishment of these agencies reflects Governor Yusuf’s continued efforts to reform public institutions, improve governance, and position Kano as a leading center for innovation, entrepreneurship, and sustainable growth.
Nasiru Yusuf Ibrahim
In a bid to ensure the smooth conduct of the ongoing Joint Admissions and Matriculation Board (JAMB) examination, the Kano State Government has temporarily suspended the April 2025, End of month sanitation exercise.
KANO FOCUS reports that this decision was taken after careful consideration and consultation with relevant stakeholders, in an effort to allow students of Kano State to write their examination without any hitches.
In a statement issued by the Director Public Enlightenment of the Ministry of Environment and Climate Change, Ismail Garba Gwammaja has quoted the Commissioner of Environment and Climate Change Dr. Dahiru M. Hashim saying that:
“The suspension is aimed at preventing any potential disruptions to the examination process and ensuring that candidates can sit for their exams without any hindrance.”
The Commissioner assured residents that the suspension is temporary for this month, and that the sanitation exercise will resume in its full force next month May 2025, in the state.
The Commissioner however, appeals to residents to cooperate with the authorities and understand the rationale behind this decision.
“We are committed to maintaining a clean and healthy environment, and we will work tirelessly to ensure that our sanitation activities do not conflict with other important events in the state,” the commissioner said.
While Commending the residents for their understanding and cooperation to the present administration, urged them to continue to avoid indiscriminate dumping of waste and cooperates with our sanitation staff to ensure clean and healthy environment always, and pray for the successful conduct of students who will sit for the Joint Admission and Matriculation Board (JAMB).
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