March 23, 2023

Naira scarcity: Reps want an overhaul of banking online systems

CBN identifies 8 ways Naira can be abused

The House of Representatives has urged the Central Bank of Nigeria (CBN) to direct commercial banks to overhaul the existing online/electronic banking platforms for the efficient conduct of electronic banking operations.

This is the sequel to a unanimous adoption of a motion by Rep. Sergius Ogun (PDP-Edo) at plenary on Thursday.

Moving the motion earlier, Ogun said that Section 88 (1) and (2) of the Constitution, empowered the National Assembly to conduct investigations into activities of any authority executing or administering laws made by the assembly like the CBN.

He said the CBN was established under Section 1 of the CBN Act, to issue legal tender currencies in Nigeria.

According to him, Section 2 of the Act saddles the CBN with the duty of promoting a sound financial system in Nigeria.

“In the wake of the recent naira redesign and cash withdrawal limit policy of the CBN, there has been an increase in the use of online and electronic banking services to carry out monetary transactions across the country.

“The use of online or internet banking services by Nigerians in the past three months or thereabout has been characterised by varying degrees of hitches ranging from unsuccessful electronic bank transfers, Point of Sale (PoS) service failure and a host of others.

“Disturbed that the ineffectiveness or difficulty in using internet banking services across the online banking platforms of most commercial banks in Nigeria has brought untold hardship, suffering and difficulties on Nigerians in the past three months.

“Worried that if nothing is done by the CBN to address these difficulties or ineffectiveness, Nigerians will continue to suffer untold hardships and loss of monies to unsuccessful electronic bank transactions,” he said.

In his ruling, the Deputy Speaker of the House, Rep. Ahmed Wase, mandated the Committee on Banking and Currency to ensure compliance and report back within four weeks for further legislative action.