By AMAKA ABAYOMI

THE Central Bank of Nigeria (CBN) has put in place some mechanisms aimed at achieving speedy and conclusive dispute resolutions within the financial sector.

Speaking on ‘The Nature of Disputes in the Financial Sector: A Regulator’s Perspective’, at a seminar organised by the Lagos Chamber of Commerce and Industry, Deputy Governor (Corporate Services) CBN, Mallam Suleiman Barau, said for the CBN to promote sound financial system in Nigeria, it is imperative for it to employ efficient dispute resolution mechanisms.

Regulators in the financial sector

“As one of the regulators in the financial sector, the CBN has oversight functions over deposit money banks and other financial institutions licensed by it. As such, the CBN is familiar with the various types of disputes in the banking sub-sector and is actively involved in their resolution.”

He grouped the disputes under 4 categories of disputes between banks and their customers; disputes between banks; disputes between the banks and the CBN; and disputes between bank customers and the CBN.

Barau listed the initiatives to 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; 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; and the establishment of the Payment Systems Policy and Oversight Office in the CBN to address all issues relating to payment systems in Nigeria e.g.

ATM fraud issues.

“As the Coordinator of Financial System Strategy 2020 (FSS 2020) the CBN is spearheading a wide range of new legislations and the amendment of certain extant laws that impact on the financial services industry.

“Some of the legislations that are at various stages of legislative consideration include: 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.

“It is the hope of the CBN that when these Bills for the establishment of the Office of the Financial Ombudsman and the National Alternative Dispute Resolution Regulation Commission 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.