By Babajide Komolafe

The Central Bank of Nigeria (CBN) has imposed a limit of six years for the resolution of consumer complaints in the banking industry.

The limit was announced by Mr. Kelvin Amugo, Director, Financial Policy and Regulation Department, via a circular tiltled, Time Bar for Resolution of Customers’ Complaints.

The circular stated, “The Central Bank of Nigeria has in recent times experienced increasing challenge in ensuring the timely resolution of complaints from consumers of financial services against financial institutions under its purview, due to non availability or delay in receiving documentary evidence from both parties.

“The situation has underscored the need for a time bar policy for complaints management in the financial services industry.

Consequently, after due consultation with relevant stakeholders in the financial services industry and in line with provisions of the limitation legislations; Money Laundering (Prohibition) Act 2013; and CBN Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) Regulations for Banks and Other Financial Institutions in Nigeria 2013, the CBN, in exercise of the powers conferred on it by the CBN Act 2007 and the Banks and Other Financial Institutions Act (BOFIA) 20004 as amended, hereby introduces a time limit of six (6) years for the resolution of consumer complaints from the date of transaction.

“The limitation will however not apply to the following: Fraud cases; Complaints already lodged with the Financial institutions and the CBN; and International electronic payment transactions whose records are not retained beyond 180 days on the dispute resolution application (Arbiter).”

Last year the CBN had indicated intention to introduce a six year time bar, based on   recommendations from stakeholders on timely resolution of customers’ complaints.

This was disclosed in circular to banks and other financial institutions on Exposure of Draft on Recommendation for Time Bar on Consumer Complaints issued by the apex bank. The circular stated, “Pursuant to the inputs received from stakeholders, study of what obtains in some other jurisdictions, some regulatory agencies in Nigeria and the provisions of relevant Nigerian Legislations in respect of document retention and commencement of legal action, a time bar of six (6) years from date of transaction was recommended, after which complaints against FSPs would not be entertained. The proposed time limit does not preclude the right of a complainant to seek redress in the court of law.