In today’s Nigeria, digital banking has become a way of life. Mobile apps, USSD codes, and POS terminals now handle daily transactions that once required physical cash. The country is rapidly becoming a largely cashless society, and citizens are encouraged to embrace this change. But for many, the digital shift has come with bitter consequences. Lost funds, delayed refunds, and mounting frustration.
One of those affected is Zack Okpe. During a routine visit to a POS agent to withdraw cash, he became a victim of fraud. The agent engaged him in distracting conversation during the transaction. Shortly afterward, Okpe discovered that a large sum had been withdrawn from his account.
“He somehow got my card details. Later, I saw that a huge amount of money had left my account,” Okpe said.
He reported the incident to his bank in hopes of recovering his money or receiving support. Instead, he was met with a warning to be more careful next time; no resolution, no empathy.
“I thought I was safe using the POS. Now I don’t even use ATMs because the ones in my area often ‘eat’ my card. I’ve replaced my ATM card many times. Now I just avoid them. It feels like I can’t even get my own money easily,” he added.
For Michael Abah, a young professional, the issue was not theft but system failure. He attempted to pay his rent through a banking app, only for the transaction to fail. However, the money was debited from his account. His landlord, unaware or unconvinced by technical explanations, demanded the money immediately.
“The worst part was my landlord. He didn’t want to hear anything about network problems or refunds. He just wanted his money. I was so stressed. I felt helpless,” Michael said.
In Wuse Market, Abuja, Rahila Umaru experienced a similar disappointment. After shopping at two different stalls, she paid using POS terminals at both points. In each case, her account was debited, but the traders claimed they never received the payment.
“They always say the bank will reverse it in 24 hours, but sometimes, it doesn’t happen. I had to pay again from the money I had left. I planned to use that money for something else. It ruined my day,” she explained.
Even the process of trying to recover her funds proved frustrating. Visiting the bank was expensive and time-consuming, and there was no guarantee the issue would be resolved.
“The transport fare to the bank is not cheap. And even after you get there, you might still not get a solution. Sometimes, it takes weeks or even months. People just suffer in silence,” she said.
For those without bank accounts, the problem can be even worse. Funmi Adeyemi relies entirely on POS agents to send and receive money. When transactions fail, there are often no clear channels for redress.
“Sometimes I go to transfer money to people, and the machine says declined, but my money is gone. I don’t know who to talk to or how to get it back. I just wait and hope,” she said. “And sometimes when I go back to the POS agent, they’re not even truthful if the money was reversed or not,” she added.
Merchants also bear the brunt of failed payments. Uju Onyeji, a small business owner, notes that failed transactions have a direct impact on her income. Customers become frustrated and sometimes walk away without completing their purchases.
“When customers try to pay and the payment fails, they get angry or leave. Some never come back. I lose money. I report to the bank, but they don’t respond quickly. Sometimes, the money leaves the customer’s account but we don’t receive it. It might return after hours or days; or not at all,” she said.
Even customer service representatives, who are expected to resolve such issues, face their own challenges. Juliet Eze, who works for a payment platform, says the volume of complaints and complexity of the issues make quick solutions difficult.
“Customers cry, shout, and even threaten to sue. But the truth is, we don’t always have the power to fix the issue fast. It depends on the bank, the platform, and many other things. It’s not easy,” she said.
From customers to merchants to service providers, the frustration is the same. Failed transactions are not just technical issues; they disrupt lives, cause emotional distress, and damage trust in the financial system. People are tired of seeing “transaction failed” alerts and tired of being told to wait, often with no timeline or resolution in sight.
However, LEADERSHIP checks reveal that the Central Bank of Nigeria (CBN) has provided a number of channels for bank customers to seek redress for such failed transitions if they fail to get satisfactory attention from their banks or digital platforms.
The CBN has established a Consumer Protection Framework designed to safeguard the rights of bank customers, including those using digital platforms.
This framework requires financial institutions to: Provide clear dispute resolution mechanisms; Issue prompt responses to customer complaints; Ensure transparency about refund policies and timelines and treat customers fairly and address grievances efficiently.
Mandatory Refund Timelines: The CBN directs banks and payment service providers to reverse failed electronic fund transfers within defined periods:
Instant (Within 24 hours): For failed transactions where the customer is debited but the beneficiary does not receive value.
Up to 5 Working Days: If the transaction involves a different institution, the initiating bank is responsible for refunding or providing clear investigation outcomes.
Banks and payment processors are required to use automated processes to identify failed transactions and issue prompt reversals without the customer having to visit the bank.
POS Agents Regulation: The CBN has issued operational standards for POS agents, including guidelines on transaction logging, fraud prevention, and consumer redress processes.
Obligations to Non-Account Holders: Financial service providers must establish accessible and transparent complaint resolution channels for both account holders and those relying on agents for transactions.
The CBN monitors compliance with these consumer protection and refund guidelines through regular audits and sanctioning of institutions that repeatedly fail refund timelines or mishandle customer complaints.
Banking institutions are mandated to publish their complaint channels and escalate unresolved complaints to the CBN’s Consumer Protection Department.
Despite these frameworks, enforcement and public awareness remain persistent issues as many consumers are unaware of their rights or how to escalate unresolved complaints.
Also, there are gaps in POS agent accountability, especially for non-account holders or informal users.and systemic failures sometimes hinder prompt refunds, leading to repeated customer distress.
While the CBN has implemented frameworks to protect digital banking customers from the impact of failed transactions, enforcement challenges, low public awareness, and technical system limitations continue to create gaps between regulations and customer experience. Ongoing regulatory improvements and more robust enforcement are required to fully address the frustrations described in the article.
As Nigeria continues to push toward a fully digital economy, these issues must be taken seriously. Financial institutions and regulators need to ensure quicker refunds, better communication, and more secure transaction systems. Without this, many Nigerians will continue to feel abandoned by the very system meant to make life easier.
Until change comes, the fear of failed transactions will remain. Leaving people not only out of money but out of trust.
