A draft framework has been released by the Office of the Vice President and the Central Bank of Nigeria with the goal of restoring public trust in the financial system and safeguarding bank customers nationwide.

On Monday, the National Framework on Strengthening Trust for Sustainable Economic and Financial Inclusion was reviewed by the Presidential Committee on Economic and Financial Inclusion.

According to officials, the framework aims to improve the handling of complaints, reduce fraud, and rebuild public confidence in formal financial institutions, particularly among poor Nigerians.

“The idea behind this whole initiative starts with the Renewed Hope Agenda of Mr. President,” said Nurudeen Abubakar, technical adviser to the president on economic and financial inclusion.

“We believe that for people to come into the formal financial sector, they have to build confidence and trust in the system.”

He listed low financial literacy, unresolved complaints, and inadequate digital security as the main causes of bank avoidance.

“Even 1,000 naira is equivalent to 10 million to another person,” he said.

“So because of that, there’s a need for us to ensure that all instruments of government are on board to restore the trust of the last man.”

According to Aisha Isa-Olatinwo, the CBN's director of financial inclusion and consumer protection, banks must address complaints first. If a complaint isn’t settled, the CBN takes over. To increase transparency, the bank is attempting to integrate its customer complaint management system with those used across the industry, she continued.

“We will have clear online visibility of complaints and hold financial institutions responsible for not resolving them within the set time,” she said.

She added that the workshop, which brought together multiple regulators, was “apt” because “our coming together today will define how consumers will see better days ahead.”

According to Mr Abubakar, stakeholder buy-in is the goal of the present talks regarding the draft framework.

“Today’s discussion is to ensure that we cross all the t’s and dot all the i’s. At the end of the day, it will be issued as a national framework.”

He went on to say that the president is prepared to take all necessary action to rebuild trust in the financial sector and that new laws would be proposed to support this if necessary.

According to the most recent data from Enhancing Financial Innovation and Access (EFInA), Nigeria has made great strides in financial inclusion, with 64% of adults utilising formal financial services in 2023, up from 54% in 2020.

The percentage of people who are financially included, including those who use informal services, increased to 74%, with 26% still not part of the financial system.

Although Nigerians use mobile money platforms or bank accounts, confidence in the official financial sector remains shaky. High transaction costs, fraud incidents, and subpar customer service continue to deter wider participation, particularly among low-income and rural residents.