The House of Representatives has taken a decisive step toward safeguarding Nigerian bank customers from the rising tide of electronic and financial fraud.
During a recent plenary session, the House formally received a crucial report from the Committees on Banking Regulations and Banking and Other Ancillary Institutions. The report details proposed amendments to the Banks and Other Financial Institutions Act (BOFIA) 2020, specifically targeting the legal protection of victims of fraudulent account withdrawals.
The bill (HB. 1168), which was initially referred to the committees in October 2024, aims to fix a long-standing grievance for many Nigerians: the difficulty of recovering funds or seeking redress after being targeted by fraudsters.
Presented by the Chairman of the House Committee on Banking Regulations, Hon. Mohammed Bello El-Rufai, the report outlines several key legislative shifts:
Mandatory Protection: Establishing clearer legal frameworks that compel financial institutions to better secure accounts.
Victim Redress: Creating a streamlined process for victims of unauthorized withdrawals to seek recovery or compensation.
Accountability: Strengthening the oversight of “Other Ancillary Institutions,” which includes fintechs and mobile money operators often used in fraudulent chains.
As Nigeria’s digital banking ecosystem expands, so has the sophistication of cybercriminals. Under the current BOFIA 2020, the burden of proof and the financial loss often fall heavily on the individual consumer.
If passed into law, this amendment could redefine the relationship between banks and their customers, moving toward a “safety-first” model where the institution shares a greater responsibility for the integrity of transactions.
“The goal is to ensure that no Nigerian is left stranded or ruined by the actions of criminals, especially when the financial system’s loopholes are exploited,” a source close to the committee noted.
With the report now officially received by the House, the bill will move toward its Third Reading.
