CBN’s 48-hour Refund Rule: A Timely Intervention on Failed Transactions
By Zekeri Idakwo Laruba
The Central Bank of Nigeria’s new draft guideline mandating all banks to refund customers for failed ATM and electronic transactions within 48 hours may appear as another routine policy announcement, but in truth, it represents one of the boldest moves yet to restore fairness, discipline, and accountability in Nigeria’s banking system. The Federal Competition and Consumer Protection Commission (FCCPC), which welcomed the directive, aptly described it as a “timely and long-awaited correction” to a recurring problem that has defined the country’s digital banking experience for years.
For too long, Nigerian bank customers have endured the frustration of failed transactions, money deducted but never refunded, complaints acknowledged but unresolved, and customer care centres that serve more as echo chambers than as channels for redress. The CBN’s 48-hour refund rule is not just an operational fix; it is an institutional reset. It establishes a clear moral and regulatory boundary, declaring that customer inconvenience is not an acceptable by-product of financial innovation.
The FCCPC’s recent Consumer Complaints Data Report, which exposed the banking and fintech sectors as the leading sources of customer grievances—over 3,000 cases betweenm March and August 2025, with about ₦10 billion recovered for consumers—provided a wake-up call for the financial sector. The report didn’t just highlight the scale of consumer distress; it offered evidence that the system’s weakest link is not technology, but accountability. The CBN’s swift response, through this draft guideline, therefore marks an encouraging example of data-driven regulation—policy informed by evidence and responsive to public pain points.
For consumers, this directive is a long-overdue relief. It means no more indefinite waiting for refunds that should take hours, not weeks. It restores dignity and predictability in how financial disputes are handled. It also reinforces public confidence in the broader cashless and digital banking framework, which has often been undermined by poor user experiences. A credible refund mechanism assures customers that their funds are never truly “lost” in the system.
For the banks, however, this new standard will demand internal restructuring. Many institutions will need to overhaul their transaction monitoring systems, streamline communication between their technical and customer service teams, and adopt automated reconciliation frameworks to meet the 48-hour deadline. The era of casual apologies and delayed reversals is over. Banks must now demonstrate operational integrity, or risk reputational and regulatory backlash.
At a higher level, the directive also symbolizes a new era of synergy among Nigeria’s regulators. The FCCPC and CBN are beginning to act in concert, bridging the traditional divide between financial oversight and consumer protection. This cooperation reflects a maturing governance culture—one that recognizes that sound policy must serve the people first, not just the institutions.
The 48-hour refund directive, if fully implemented, will strengthen Nigeria’s digital economy. It encourages citizens to trust digital payment systems, deepens financial inclusion, and reinforces the principle that innovation without accountability is unsustainable. But the success of this policy will depend on consistent enforcement and transparency. The CBN and FCCPC must ensure that monitoring mechanisms are robust, sanctions are swift, and consumers are adequately informed of their rights to redress.
Ultimately, this directive is more than a technical guideline—it is a statement of values. It affirms that while electronic systems may fail, the human systems behind them must not. By insisting that banks refund failed transactions within 48 hours, the CBN is drawing a line in defence of fairness, efficiency, and consumer confidence.
For the Nigerian banking public, this is not just policy—it is progress. For the regulators, it is an opportunity to prove that governance can protect as well as regulate. And for the financial institutions, it is a chance to rebuild trust, one refunded naira at a time.
Zekeri Idakwo Laruba is the Assistant Editor Economic confidential and PRNigeria. [email protected]