The Central Bank of Nigeria (CBN) now requires commercial banks to seek approval before changing their core banking software. This directive follows customer disruptions resulting from recent technological upgrades at major banks, which have led to complaints across social media.
Since mid-2024, at least four Nigerian banks have modified their core banking applications, motivated by cost-cutting and customization needs. However, these changes left many customers unable to access services. Banks are addressing these disruptions, but the CBN’s mandate has increased the urgency for a solution.
CBN Steps In to Address Rising Customer Complaints
Responding to a surge in customer complaints, the CBN has intervened. Sources close to the matter indicate that the regulator is not pleased with the rise in complaints in recent months. This move aligns with the CBN’s commitment to customer protection, emphasized by the revised consumer protection regulations introduced earlier this year.
Effects on Customers and Banking Services
The recent software changes have impacted millions of customers. As banks work to resolve these issues, the CBN’s directive underscores the need for stable, reliable banking services. In similar scenarios, other regions have imposed penalties; for example, the Royal Bank of Scotland faced a substantial fine following a failed upgrade that impacted millions.
Industry insiders suggest that the CBN’s delay in responding may have stemmed from a lack of specific regulations for core banking software. With this new directive, the CBN aims to ensure that future upgrades prioritize system stability and minimize customer disruptions.
This new mandate reinforces the CBN’s dedication to protecting Nigerian banking customers. As banks modernize, regulatory oversight will help ensure that advancements don’t compromise service quality.