BY MICHAEL EBOH
Lagos—The Central Bank of Nigeria, CBN, Tuesday, expressed concern over the high rate of disputes in the financial sector.

According to Mallam Suleiman Barau, Deputy Governor, Corporate Services, CBN, in his paper titled, ‘The nature of Disputes in the Financial Sector: A Regulator’s Perspective’, presented at a forum organised by the Lagos Chamber of Commerce and Industry, LCCI, in Lagos, said the disputes are varied, wide-ranging and sometimes complex.

Barau said the disputes range from those involving banks and their customers to those involving bank customers and the CBN.

He expressed concerns that the financial sector was inundated with a number of litigations arising from the interactions of banks among themselves and with their customers and also against the CBN in the discharge of its regulatory functions among others.

It is in the light of this, according to Barau, that the CBN has put in place mechanisms to

resolve some of these disputes, adding that many of the disputes of have been successfully resolved employing these mechanisms, while some of the disputes, however, end up in court.

He stated further that the CBN has put in place a number of initiatives in bringing about an effective resolution of disputes arising from day-to-day banking operations.

The initiatives, according to him, include the establishment of the Ethics and Professionalism Sub-committee of the Bankers’ Committee which plays a vital role in the resolution of disputes within the banking sector particularly disputes between banks and the establishment of a public complaints office in the CBN to co-ordinate all complaints from members of the public on issues arising from their interactions within the banking sector.

He said the CBN has also established the Payment Systems Policy and Oversight Office in the CBN to address all issues relating to payment systems in Nigeria, such as ATM fraud issues.

In addition, Barau said the CBN is spearheading a wide range of new legislations and the amendment of certain laws that affects the financial services.

The new legislations are the Financial Ombudsman Bill, which aims to establish an independent body to be charged with the resolution of disputes within the financial sector which parties are unable to resolve themselves; and the National Alternative Dispute Resolution Regulation Commission which would promote dispute resolution mechanisms other than litigation.

“When these Bills are eventually passed into law, they would provide more avenues for effectively and efficiently resolving financial sector disputes which would ultimately contribute to the promotion of a sound financial system in Nigeria,’ Barau stated.