E-Financial
UBA, Zenith Pioneer Implementation of Chargeback on PoS Transactions
UBA and Zenith bank are pioneering central bank of Nigeria (CBN) directive on implementation of 24 hours chargeback dispute resolution mechanism on transactions on point of sale terminal, Nigeria CommunicationsWeek has learnt.
Chargeback is when a customer buys goods or service at a point of sale terminal and was debited but the PoS did not print receipt showing a successful transaction, because the transaction was decline, the merchant will refuse to give the customer the goods he requested for, while his account has been debited. In this situation, the customer will have to go to his own bank which is not the bank of the merchant and file a claim of refund that is called chargeback.
Before the new CBN directive of its resolution within 24 hours, the problem is resolved by the customers’ bank logging it against the merchant and the merchant bank needs to investigate if that claim is correct or not, if it is true he did not give the customer the value, he will attest to the bank that it is true and for his bank to return the money to the customer. This process takes weeks to resolve.
Against the frustration merchants and financial inclusion agents are facing as a result of issues around chargeback on PoS transaction that CBN gave directive to banks to implement 24 hour chargeback dispute resolution mechanism of which UBA and Zenith have started implementing.
Commending the two banks, Fasasi Sarafadeen Atanda, managing director, Ecosystem Hybrid Network, an agent network operator said that UBA and Zenith are in the first to begin the implementation of the CBN directive that anytime customers have dispute issue the only thing they need to get from Agent is to get a receipt supporting that decline.
“Once you have that receipt, take it to your bank and collect your money, they are well prepared to follow the money anywhere it hangs whether it is hanging at processor, or banks, they can view it from their backend to know where it is hanging and retrieve it to credit the customer.
“This will reduce the time customers waste waiting and also engender truth in the system, which will help agents grow customers because they know when they have issues their bank will attend to them unlike previously when their bank will ask them to go back to follow up Agents.
“We are going to see fewer cases of police arrest when there is no dispute; there won’t be any need to invite police.
“The only thing that remains is for all the banks to commence implementation of this CBN directive on chargeback.
“PoS usually produce two receipts, merchant copy and customer copy, if it shows approved definitely the customer must pay but if it show decline customer cannot pay. It is the decline receipt that should be taken to the bank for refund.
“Financial inclusion in Nigeria is driven through three providers that includes bank led, mobile money operators’ led and mobile network operators’ led these are the digital financial services channels.
“For bank led, we have solution for dispute now and we encourage all of them to abide by that, the same thing should happen to mobile money operators’ led as they don’t have branches everywhere where customers can go but they have aggregators they should work with their aggregators, provide their addresses and location for customers to go in case of dispute arising from cash back.
“As mobile network operators’ led is gradually coming up, they should put in place dispute resolution mechanism just like the banks have just done.
“With this dispute resolution mechanism in place there is going to be a surge in the use of agents in the financial inclusion programme. Trust have been militating the use Agents for transaction making people to rather go to the banks than use Agents for transactions.
“Agents are not legally allowed to intervene on behalf of customers in case of dispute because they are regarded as third party.
A lot of agents have closed down as a result of dispute issues with customers, but with this directive been implemented by the banks; they will start opening shops again,” he added.
Sofri, Powered by Links Microfinance Bank plans a massive rollout of Point of Sale, PoS terminals for merchants and agency banking in the third quarter of this year.
This is coming against the backdrop of the banks revamp of its digital platforms to support better customer experience.
Paul Adebayo, managing director, Sofri, said the bank is technology and purpose-driven, with focus on financial inclusion and sustainability. As well with the determination of making banking simpler, inclusive, and impactful.
He said that the revamped mobile app features, faster onboarding, cleaner interface, real-time alerts, enhanced security and seamless loan applications.
“Our corporate internet banking Launched for SMEs and institutional clients features, secure payments, transfers, account management and enhances business banking experience.
“Laying the groundwork for greater reliability, product innovation and operational efficiency is our new core banking infrastructure. This change enables us to scale faster and serve customers better.
“Our Terminal Management System (TMS) improves the performance, uptime, and remote monitoring of our POS terminals. This ensures merchants and field agents enjoy better stability, quicker settlements, and stronger support,” he added.
On sustainability impact, Adebayo, added that Sofri is embedding ESG principles into its lending and operational models — from offering green financing options, to supporting waste-to-wealth entrepreneurs, and making inclusive finance part of Nigeria’s circular economy.
Sofri is a trademark of Links Microfinance Limited (Links Mfb). Links Mfb is licensed and regulated by Central Bank of Nigeria (CBN) and deposits insured by the Nigeria Deposit Insurance Corporation (NDIC). Links Mfb is a member of DLM Capital Group, owners of DLM Asset Management as regulated by the Securities and Exchange Commission (SEC).
Current market research has confirmed that buyside investors are increasingly focused on high-growth sectors such as small businesses and consumer lending— sectors that fuel both the demand and supply sides of the economy.
However, capital allocation to these areas requires robust risk mitigation frameworks to preserve principal and ensure returns that are not just economically viable but outpace inflation.
Against the backdrop that DLM Capital Group has developed an innovative solution – the Sovereign Bond Backed Composite Notes (SBCNs) to meet this critical economy needs.
According to Sonnie Babatunde Ayere, the Group CEO of DLM Capital Group, “We believe that the consistent issuance of SBCNs by qualified entities will play a key role in de-risking corporate bond portfolios.
“By blending sovereign-backed security with enhanced yield exposure, portfolio managers gain a rare opportunity to simultaneously increase portfolio safety and performance”.
The first of its kind fixed income product combines the security of direct sovereign bond-backed principal protection, such as FGN Bonds, with the enhanced yield potential of corporate and consumer lending cash flows. This hybrid structure, the first of its kind in the local market, merges public-sector credit safety with private-sector income generation.
The instrument is designed as such that the private sector credit tranche will be secured by the FGN-bonds, which will be the senior tranche.
The N30 billion Sovereign Bond Backed Composite Notes issued by DLM Funding SPV Plc is being packaged as a AAA-rated note. With a held-to-maturity yield of 49.9 percent, the notes are designed to be attractive to institutional investors seeking a balance between capital preservation and superior returns.
Sonnie Babatunde Ayere, noted about the SBCN, “For asset managers, it enhances portfolio quality, improves credit profiles, supports diversification, and delivers competitive returns.
In a media parley describing the instrument, Ayere highlighted the role of the instrument in driving credit expansion to the underserved private sector. He highlighted how the note could help drive institutional capital into sectors that were previously considered too risky.
“By channeling domestic capital into these critical but underserved sectors without exposing investors to excessive risk, it becomes possible to mobilize funding for parts of the economy that have long been neglected.” He added.
E-Financial
Fidelity MD,Onyeali-Ikpe Champions Lifelong Learning and Sisterhood for Women’s Career Growth
Dr. Nneka Onyeali-Ikpe, Managing Director and Chief Executive Officer of Fidelity Bank Plc, has encouraged women professionals to embrace continuous learning, courage, and collaboration as key habits for achieving long-term career success and breaking through professional barriers.
Managing Director and Chief Executive Officer of Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe, OON, (Middle) flanked by participants of a Women’s Roundtable themed, “Mentorship with Dr. Nneka Onyeali-Ikpe” hosted by the bank over the weekend at the Fidelity SME Hub, Gbagada, Lagos recently.
She gave the charge during a Women’s Roundtable hosted by the bank over the weekend at the Fidelity SME Hub in Gbagada, Lagos. Themed “Mentorship with Dr. Nneka Onyeali-Ikpe”, the event drew female professionals from various sectors and was held under the Recognition and Networking arm of the bank’s HerFidelity Proposition—a flagship initiative designed to empower women entrepreneurs and professionals across Nigeria.
Explaining the vision behind HerFidelity, Dr. Onyeali-Ikpe noted that the initiative was born out of a strong need to provide women with holistic support beyond access to finance.
“In my engagements with women across different industries, I’ve seen first-hand that while talent and ambition abound, many still lack access to capital, skills development, health support, and networks,” she said.
“HerFidelity was created to bridge that gap by focusing on four key pillars: access to capital, capacity building, wellness for work-life balance, and entrepreneurship support. It’s one of the initiatives I’m most proud of, because when women thrive, communities prosper and economies flourish.”
The interactive mentorship session, held in a Q&A format, offered participants an opportunity to learn directly from the trailblazing CEO, who shared personal experiences and career insights.
Advising young women aspiring to leadership, she said: “Believe in yourself, be ready to work hard, and never shy away from taking smart risks. Seek out mentors, invest in meaningful relationships, and above all, collaborate—because no one truly succeeds alone.”
The event also featured fun competitions and giveaways, with attendees winning exciting gifts courtesy of Fidelity Bank.
Dr. Onyeali-Ikpe’s session left participants inspired, reinforcing Fidelity Bank’s position as a champion for gender empowerment and a leading supporter of women’s advancement in business and leadership.
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