The Central Bank of Nigeria (CBN) has identified consumer education as a critical pillar in its strategy to raise financial services standards and strengthen trust in the banking system. The apex bank says empowering consumers with knowledge is essential to reducing fraud, improving service delivery, and deepening financial inclusion.
At a recent financial literacy forum, CBN officials stressed that a significant portion of disputes between banks and customers stem from poor understanding of financial products, digital platforms, and consumer rights. According to the bank, education is no longer optional in a system increasingly driven by technology and digital transactions.
Nigeria’s financial landscape has evolved rapidly, with mobile banking, fintech platforms, and digital payment systems becoming mainstream. While these innovations have expanded access, they have also exposed consumers to risks such as cyber fraud, identity theft, and unauthorized transactions. The CBN believes informed consumers are better equipped to protect themselves and demand accountability.
The apex bank highlighted initiatives such as the National Financial Literacy Framework, consumer protection departments, and collaborations with schools, community groups, and market associations. These efforts aim to simplify financial concepts, explain customer rights, and clarify dispute resolution mechanisms.
CBN data indicates that complaints related to failed transactions, unauthorized debits, and poor customer service remain high. The bank insists that consumer education, combined with stricter enforcement of service standards, will compel financial institutions to improve transparency and responsiveness.
Financial institutions have been warned that ignorance among customers will no longer excuse poor practices. The CBN has reiterated penalties for banks that fail to resolve complaints within stipulated timelines or engage in misleading product disclosures.
Analysts argue that consumer education also plays a role in financial stability. When customers understand interest rates, loan terms, and risk exposure, they are less likely to default or engage in panic withdrawals during economic shocks.
The CBN also emphasized inclusion, noting that millions of Nigerians remain unbanked or underbanked. For these populations, mistrust and lack of understanding remain major barriers. Targeted education, particularly in rural areas, could accelerate inclusion and support economic growth.
However, critics argue that education alone is insufficient without stronger enforcement. They point to recurring complaints about arbitrary charges and poor customer service as evidence that banks often prioritize profit over fairness.
The CBN maintains that its approach combines education, regulation, and enforcement. Ultimately, the success of this strategy will depend on measurable improvements in consumer confidence and service quality.
