(DDM) – The Central Bank of Nigeria, CBN, has released draft guidelines aimed at curbing the growing incidence of push payment fraud in the country.
DDM gathered that push payment fraud occurs when individuals are deceived into voluntarily transferring funds to fraudulent accounts, a phenomenon that has increased sharply alongside the rapid expansion of digital payment platforms.
According to the CBN, the surge in such fraud has led to significant financial losses for both customers and financial institutions, prompting urgent regulatory intervention.
The draft rules require banks and other financial institutions to establish round-the-clock reporting channels, including social media, emails, mobile applications, and physical outlets, to allow customers to report incidents of fraud promptly.
Customers are expected to notify their financial institution within 24 hours of detecting a fraudulent transaction, though the guidelines allow an additional 48 hours in special circumstances to provide comprehensive information for investigation.
Once a report is lodged, institutions must acknowledge receipt within 24 hours, issue a unique case reference number, and provide a timeline for resolution.
Investigations are mandated to conclude within 14 days, during which institutions may collaborate with the CBN, Nigeria Inter-Bank Settlement System (NIBSS), and relevant bodies to withhold settlement of the affected funds.
Failure to report within 72 hours without valid justification, such as illness or security concerns, may disqualify a customer from reimbursement.
The guidelines also outline reimbursement procedures: eligible customers must receive refunded funds within 48 hours of investigation completion. If no institution is found liable but the customer qualifies for a refund, the involved institutions share the liability equally.
Where disputes remain unresolved, the matter can be escalated to the CBN’s Consumer Protection and Financial Inclusion Department, which serves as the ultimate arbiter for complaints.
The responsibility for enforcing these rules and any additional risk-management frameworks rests with the boards of financial institutions, which must also monitor fraud trends and verify the effectiveness of implemented controls.
The CBN’s draft guidelines reflect a broader regulatory push to strengthen oversight of the financial system, improve consumer protection, and enhance public confidence in Nigeria’s digital payments ecosystem.
Analysts note that these measures, if implemented effectively, could significantly reduce push payment fraud while encouraging the continued growth of digital finance in a secure environment.