Imagine losing your hard-earned money to a scammer, only to be left waiting endlessly for justice. This is the harsh reality many victims of Authorized Push Payment (APP) fraud face in Nigeria. But the Central Bank of Nigeria (CBN) is stepping in with a bold move to change the game. In a draft guideline released on November 26, 2025, the CBN proposes a groundbreaking rule: banks must refund APP fraud victims within 48 hours of completing investigations. This is a significant shift aimed at tackling the rising tide of fraud orchestrated through social engineering, impersonation, and deception. And this is the part most people miss: the CBN acknowledges the unique challenge of APP fraud, which exploits victims' trust in digital transactions, making it harder to detect and leaving them financially devastated.
The guidelines, titled “Guidelines for Handling Authorised Push Payment Fraud,” outline a comprehensive framework. Banks are mandated to complete investigations within 14 working days and promptly notify customers of the outcome. Here's where it gets controversial: while customers must report fraud within 72 hours to qualify for reimbursement, the CBN allows exceptions for circumstances like illness or security issues. This flexibility, though well-intentioned, might spark debates about potential loopholes.
The rules also emphasize banks' heightened responsibility towards vulnerable customers and impose strict penalties for non-compliance. Institutions with inadequate fraud detection systems will bear the full loss and face regulatory sanctions. The CBN is pushing for stronger Early Warning Systems, improved monitoring, and dedicated fraud analytics units.
But here's the kicker: if both the sending and receiving banks are blameless but the customer qualifies for a refund, the banks will split the cost equally. This shared liability clause is sure to stir discussions among financial institutions.
Dr. Rita Sike, Director of the Financial Policy and Regulation Department, invites public feedback on the draft within three weeks. Once finalized, these rules promise to revolutionize accountability in Nigeria's banking sector and bolster consumer protection in the digital payment landscape. With fraud-related losses reaching a staggering N42.33 billion in the first half of 2024, these measures couldn't come sooner.
Is the CBN's 48-hour refund rule a game-changer or a logistical nightmare for banks? Will the shared liability clause discourage fraud or create new challenges? Share your thoughts in the comments below!
