E-Financial
CBN Urges Fintechs, Payment Service Providers to Stick to Standards
The Central Bank of Nigeria has urged financial technology companies, payment service providers and Deposit Money Banks engaged in offering payment solutions to customers to ensure they adhere to policy framework and standards that guide their respective operations in the ecosystem in which they operate.
Mr. Musa Itopa Jimoh, Deputy Director, Payments System Policy and Oversight, Central Bank of Nigeria, stated this in Lagos in the week during the corporate launch of Xpress Payment Solutions Limited.
He explained that the CBN was trying to build an ecosystem that allows everyone to have equal opportunity to present and run his own system, adding that Fintech was introduced into payment system with the aim of deepening financial inclusion in Nigeria.
The event was witnessed by representatives of some state governments, Deposit Money Banks, fintech organisations, e-payment industries who commented on the quality and reliable services provided by Xpress Solutions.
The deputy director represented Mr. Samuel Okojere, Director, Payment Systems Management Department, CBN, who said the CBN made a commitment in 2011 to bring those that are outside the banking sector closer, hence the introduction of Fintech companies into payment space.
Okojere said: “What does CBN expect from the operators in the financial payment service providers? Number one is compliance with set standards. This is the only thing that can make you integrate to global best practices. If you are not complying with regulation, you cannot connect with the local one. There are rules that guide this service that we provide in Nigeria and also in the world.
“It is our joy today that our cards can go anywhere in the world and is being used. This is because we comply with the best practices, and I’m happy to hear that Xpress Payments has also competed in certification on PCIDSS.
“Our responsibility is to ensure that we all behave very well within the financial ecosystem. And so compliance is a major responsibility.
“I want to imagine that added to that responsibility of the board members is cyber-crime, you also check and ensure that you comply with all the directives of CBN. Actually, non-compliance can bring your company down.”
The director, who charged the board of directors and other stakeholders in the financial services to take privacy and protection of customers data seriously, disclosed that bringing more people on board so they can benefit from financial services that payment providers offer “is one of the core responsibilities of the Central Bank of Nigeria.”
He said the cashless policy introduced by the apex bank was also meant to encourage more Nigerians to adopt electronic payment.
“And again, to strengthen that, we came with a cashless policy basically to see how we can encourage people to adopt electronic payment option so that all these fanciful solutions that you have provided can be enjoyed. Without cashless policy, I can decide not to pay my tax in cash. If I pay my tax in cash, then you have no revenue, you are not even in equation.
“It’s only when I chose to make my revenue collection through electronic form that a solution becomes very effective. Central Bank is driving that through cashless policy and encouraging all Nigerians to adopt electronic means of payment.”
Oluwadare Owolabi, Managing Director/CEO, Xpress Payment Solutions Ltd, noted that every sector of human endeavour in the globe had been extensively characterised by technological disruption.
“The need to satisfy the ever-increasing demands of customers for better service quality and innovations that work within the e-Payment industry coupled with this technological revolution created the dream that necessitated the birth of the company we are celebrating today.
“Consequently, distinguished guests, we started the journey with a clear focus and understanding of the needs of our target markets which formed the bedrock of our core business drivers: Easy, Fast, Secure.
With these, our aim was to provide a stress-free experience for you by creating solutions that enable smarter living. This we knew from the onset can only be realised by the assemblage of experienced and exceptional team and deployment of the cutting edge technology.”
According to him, the commitment to deepen financial inclusion penetration in Nigeria and provide a seamless and hitch-free transaction experience for customers led to the creation of an array of e-Payment products and services by the organisation that had been embraced and deployed by some state governments in the federation and some commercial banks as well.
Federal Capital Territory High Court has ordered Stanbic IBTC Bank Limited to pay N15 million in damages to two former customers after finding that the bank unlawfully retained and processed their personal information after they had terminated their banking relationship.
In a judgment delivered on July 29, Justice Kayode Agunloye also directed the bank to erase all personal data belonging to the claimants that it is not legally required to retain and restrained it from further processing or using such information without lawful authority or the customers’ consent.
The court held that the bank breached the Nigeria Data Protection Act (NDPA) 2023, the claimants’ constitutional right to privacy under Section 37 of the 1999 Constitution (as amended), and provisions of the Federal Competition and Consumer Protection Act (FCCPA).
The suit, marked CV/2190/25, was filed by David Ogundipe and Salami Tolulope Ibrahim, who argued that Stanbic IBTC continued to process their personal data for marketing purposes even after they had closed their corporate account with the bank.
According to the claimants, the account was shut following unresolved issues with the bank.
Despite the closure, they alleged that Stanbic IBTC continued sending promotional emails and text messages to their personal and corporate email addresses as well as their telephone numbers.
The customers said their solicitors later wrote to the bank demanding that all marketing communications cease and that their personal data should no longer be processed for promotional purposes.
Although the bank reportedly acknowledged the request and assured them that the messages would stop, the unsolicited communications allegedly continued, prompting them to seek judicial intervention.
In his ruling, Justice Agunloye held that once the banking relationship had ended and the customers had withdrawn their consent, the bank no longer had any lawful basis to process their personal data for marketing activities.
The judge ruled that the continued use of the claimants’ information amounted to an infringement of their constitutional right to privacy and constituted an unfair trade practice under the FCCPA.
The court consequently ordered Stanbic IBTC to delete all personal information relating to the claimants that it is not legally required to retain and to cease every form of data processing except where permitted by law or regulatory obligations.
Justice Agunloye also granted a perpetual injunction restraining the bank, its officers and agents from retaining, processing, transmitting or using the claimants’ personal data for marketing, promotional or any other unauthorised purpose.
While the claimants sought N250 million as damages, the court awarded N15 million as general damages, describing the amount as adequate compensation for the persistent unsolicited communications, the bank’s failure to honour requests for data erasure and the violation of the customers’ privacy rights.
The bank was further ordered to pay N500,000 as the cost of the suit, while the claim for N7 million as litigation expenses was dismissed for lack of sufficient proof.
Justice Agunloye directed that all monetary awards would attract 10 per cent post-judgment interest annually until fully settled.
However, the court declined to order the complete deletion of every record relating to the claimants, holding that banks remain under statutory obligations to retain certain customer records in compliance with financial regulations and anti-money laundering laws.
Reacting to the verdict, counsel to the claimants, O.E. Oluwadamisi of Earnest Attorneys LP, described the decision as a landmark judgment for data protection in Nigeria.
He said the ruling reinforces the mandatory nature of compliance with the Nigeria Data Protection Act and makes it clear that organisations cannot continue processing customers’ personal information after consent has been withdrawn unless authorised by law.
One of the successful claimants, David Ogundipe, welcomed the judgment, saying it represented a victory not only for the litigants but also for millions of Nigerians whose personal information is held by corporate organisations.
He expressed hope that the ruling would encourage institutions across the country to strengthen compliance with data protection laws and place greater respect on customers’ privacy rights.
The number of Bank Verification Numbers (BVNs) on the Nigerian banking industry’s fraud watchlist reached 13,117, according to the Central Bank of Nigeria (CBN).
This is coming as banks strengthen efforts to detect and prevent financial crimes.
According to the CBN’s 2025 Annual Report and Statement of Accounts, the number of BVNs on the banking industry’s fraud watchlist increased from 9,476 in 2024 to 13,117 in 2025. This represents a 38.4 per cent increase.
The apex bank explained that commercial banks, including Access Bank, Zenith Bank, United Bank for Africa (UBA), and other financial institutions, added 3,641 new BVNs to the watchlist during the year.
The report said the increase reflects stronger fraud monitoring, improved compliance, better risk management, and enhanced systems for detecting suspicious transactions.
It added that the higher number does not necessarily mean fraud has increased, but shows banks are becoming more active in identifying and blocking suspicious activities.
The report also revealed that consumer lending declined for the first time since 2019.
Outstanding consumer credit dropped by 19.89 per cent, falling from N4.72 trillion in 2024 to N3.78 trillion in 2025.
The CBN attributed the decline to high interest rates, which made borrowing more expensive for many Nigerians.
Personal loans recorded the biggest drop, falling to N1.85 trillion.
However, retail loans rose by 63.77 per cent to N1.94 trillion, making them the largest category of consumer credit for the first time in several years.
Central Bank of Nigeria (CBN), has ordered banks to refund a total N19.12 billion to customers for illegal deductions and poor complaint handling.
This is coming as bank customers lodged 23,129 complaints against financial institutions in 2025, representing 11 per cent increase over the previous year.
The apex bank also imposed N1.69 billion in penalties on financial institutions for regulatory breaches, poor complaint handling and failure to comply with its directives, according to its 2025 Annual Report.
The CBN attributed the increase in complaints to growing public confidence in its consumer protection framework rather than a deterioration in banking services.
The report stated: “The Bank received a total of 23,129 complaints from consumers of financial services in 2025, a rise of 10.53 per cent above the 20,925 in 2024. The trend reflected increased awareness and improved confidence in the Bank’s consumer complaint resolution process.”
The apex bank added: “A total of 18,824 complaints were resolved, indicating a 9.36 per cent increase over the 17,213 complaints resolved in 2024.”
On the value of disputed transactions, the CBN said: “Total claims in local currency increased to N40.61 billion from N17.13 billion in 2024. Foreign currency claims also rose, reaching $344.2 million compared with $1.06 million in the preceding year.”
According to the report, “Based on the resolved complaints, the sums of N19.12 billion and $329.3 million were refunded in 2025, compared with N9.66 billion and $0.67 million in 2024.”
The CBN said it strengthened enforcement against erring financial institutions during the year.
It stated: “During the review period, the Bank imposed 11 penalties on financial institutions totalling N1.26 billion for infractions ranging from regulatory breaches and failure to respond to regulatory queries.”
The report further disclosed: “In addition, the Bank imposed 21 penalties on financial institutions to the tune of N430 million for infractions ranging from delays in resolving customer complaints to failure to comply with the Bank’s directives.”
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