Zenith Bank’s recent mobile app update, which has left many customers unable to access their funds for over three days, raises significant concerns regarding consumer rights and protection in Nigeria.
Development Diaries reports that the bank, in a statement it shared on X on 28 September, said it would commence routine maintenance on 29 September and end on 01 October, from 12:01 AM to 5:00 AM.
However, according to customers, despite the prior notification, the bank did not begin the announced maintenance until 01 October.
No, Zenith Bank. This is very insensitive of you. Why didn’t you send bulk sms to your customers? I’m trying to open my app and seeing a funny message, only to come here and see this. Apology not accepted. And this is 4:45pm? https://t.co/MbstkL8w2Z
— Lerabari Deeyor 🇳🇬🇸🇱 (@Lera_Bari) October 1, 2024
Under the Federal Competition and Consumer Protection Commission (FCCPC) Act, consumers have the right to fair treatment and access to services without unreasonable delays.
Denying customers access to their funds due to an app update, particularly without offering swift resolutions, is a violation of these rights.
This situation highlights the responsibility financial institutions have to ensure that digital banking platforms are fully operational and functional, especially after updates or maintenance.
In the current economic climate, where many Nigerians depend on daily access to their bank accounts for both personal and business needs, such service disruptions have dire consequences.
Customers who rely on Zenith Bank for business transactions are particularly hard hit, with their livelihoods put at risk.
This act of preventing customers from accessing their money is unacceptable and adds unnecessary financial strain on individuals already grappling with the economic challenges of inflation, high costs of living, and declining purchasing power.
Furthermore, the FCCPC Act also stresses the importance of transparency and adequate communication with consumers when there are potential service disruptions.
While Zenith Bank notified its customers of the app update, it appears the bank did not anticipate or mitigate the technical challenges that have led to users’ prolonged inability to log in. This lack of preparedness and failure to offer immediate solutions post-update is an infringement on the rights of consumers to prompt and efficient service.
Given the gravity of this situation, it is imperative that the Central Bank of Nigeria (CBN), as the primary financial regulatory body, takes swift action to address the concerns raised by consumers.
The CBN is tasked with ensuring that financial institutions maintain a high standard of service delivery, and any disruptions in core banking operations must be investigated to avoid similar issues in the future.
Development Diaries calls on the CBN to hold the bank accountable for the technical failures that have denied customers access to their funds.
Regulatory oversight is necessary to prevent such situations from recurring, as customers’ trust in the banking sector is undermined when access to their finances is hindered.
In addition to CBN action, we urge the FCCPC to investigate this matter to ensure that Zenith Bank compensates affected customers for any financial loss or inconvenience caused by this disruption.
Financial institutions must adhere to consumer protection regulations and prioritise customer service, particularly during app upgrades or technical maintenance, to avoid such service failures that leave consumers stranded.
