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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*_
Nasiru Yusuf Ibrahim
Nafisah Yusuf Hassan, a magistrate in Kano State, has been recommended for appointment as a judge of the Kano State High Court by the National Judicial Council (NJC).
KANO FOCUS reports that Hassan is among four judicial officers from Kano State recommended for elevation to the High Court bench out of 28 candidates selected nationwide.
The other nominees are Halima Yahuza Ahmad, Abdullahi Abdulsalam Bature and Musa Ibrahim Umar.
The NJC disclosed the recommendations in a statement issued by its Deputy Director of Information, Kemi Babalola-Ogedengbe, following its consideration of candidates for judicial appointments across the country.
The council said all recommended candidates were expected to be sworn in by their respective state governors without delay.
Hassan’s recommendation follows her years of service in the Kano State judiciary, where she has reportedly distinguished herself through diligence, professionalism and careful handling of cases.
She has been commended for her commitment to judicial ethics, diligence and fairness in the discharge of her responsibilities, achievements that contributed to her career progression within the judiciary.
Her elevation is part of a broader development in the Kano State judiciary, with four magistrates from the state successfully scaling the selection process for appointment to the High Court.
The four nominees were reportedly assessed during the selection exercise and demonstrated strong professional competence, while their service records were found to be free of adverse remarks.
Their recommendation marks a significant step in their judicial careers and is expected to strengthen the judicial workforce in Kano State upon their formal appointment.
Nasiru Yusuf Ibrahim
The Kano State Accountability Forum on Education (K-SAFE) says it has tracked nearly 1,000 education projects across the state as part of efforts to promote transparency, accountability and effective service delivery in the education sector.
KANO FOCUS the coalition’s Co-Chair, Dr Auwalu Halilu, disclosed this on Wednesday during an advocacy visit to the Kano State Ministry of Public Procurement and Project Monitoring.
Dr Halilu said K-SAFE had monitored projects in more than six local government areas, covering interventions implemented by the State Universal Basic Education Board (SUBEB), Kano State Senior Secondary Education Management Board and Local Education Authorities (LEAs).
He explained that the monitoring exercise involved physical inspections and documentation of projects through photographs, videos and geographical locations.
According to him, reports of the findings had been submitted to relevant ministries, departments and agencies (MDAs), highlighting projects that met required standards and those requiring further attention.
He cited Rimin Gado Local Government Area, where the coalition tracked more than 80 education projects, adding that it planned to extend the exercise to all 44 local government areas of the state.
The K-SAFE Co-Chair said the visit was aimed at presenting the coalition’s activities to the ministry and exploring areas of collaboration in procurement and project monitoring.
He called for the inclusion of civil society organisations in procurement and monitoring processes, particularly tender board activities and field inspections, to strengthen independent oversight and provide them with firsthand information on government projects.
Dr Halilu also requested the ministry’s support in organising capacity-building programmes for civil society organisations on procurement procedures, due process, project standardisation, monitoring and evaluation.
He said such training would enhance civil society organisations’ understanding of procurement regulations and the technical requirements guiding project implementation.
Responding, the Commissioner for Public Procurement and Project Monitoring, Dr Nura Iro Ma’aji, welcomed the delegation and acknowledged the coalition’s contributions to supporting the state government’s efforts in the education sector.
He expressed the ministry’s readiness to collaborate with K-SAFE through information sharing and other relevant engagements to strengthen accountability and ensure compliance with due process.
“From our side, we are ready to work together because we know what they have been doing to support Kano State Government in the education sector,” he said.
Dr Halilu further disclosed that the coalition and its partner organisations had carried out the monitoring exercise without financial sponsorship, describing it as a demonstration of their commitment to transparency and accountability.
He reaffirmed K-SAFE’s commitment to sustaining engagement with relevant government agencies, civil society organisations and the media to strengthen oversight of education projects across Kano State.
Ibrahim Khalil
Government Secondary School (GSS) Army Day Bukavu has emerged champion in both the male and female categories of the maiden Kano State Secondary Schools Tug of War Competition.
KANO FOCUS reports that the school clinched the double victory at the competition, which ended on Wednesday at the Kano Pillars Stadium, Sabon Gari, Kano.
Governors College finished as runners-up in the male category, while Government Girls College (GGC) Kano secured second position in the female category.
The competition was organised by the Kano State Tug of War Association in collaboration with the state Ministry of Education, the National Drug Law Enforcement Agency (NDLEA) and the Kano State Sports Commission.
The maiden championship brought together secondary school students to promote teamwork, discipline, unity and sportsmanship, while raising awareness about the dangers of drug abuse.
Speaking at the closing ceremony, the Vice Chairman of the Kano State Tug of War Association, Jamilu Uba Adamu, described the competition as a successful initiative that had achieved its objectives.
He commended the Ministry of Education, Sports Commission, NDLEA, Gongoni Company Limited and MAGZO Pharmaceutical for supporting the event, particularly through the provision of T-shirts and Pocari Sweat drinks.
Also speaking, the Secretary of the Kano State Tug of War Association, Bashir Muhammad Sulaiman, who represented the Executive Chairman of the Sports Commission, Muhammad Tukur Babangida, reaffirmed the commission’s commitment to developing grassroots and school sports.
He said the initiative would help identify and nurture young sporting talents across the state.
The closing ceremony was attended by a member of the Kano State Football Association Board, Rilwanu Idris Malikawa Garu, representatives of the Ministry of Education, NDLEA, the Sports Commission and other stakeholders in the sports sector.
The organisers congratulated the winning schools and commended all participating institutions and partners for contributing to the success of the maiden edition.
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