RIGHTS AND RESPONSIBILITIES IN NIGERIA’S E-BANKING: WHEN DOWNTIME ISN’T JUST “TECHNICAL”

Imagine transferring money to a loved one in an emergency, but the app won’t open. You refresh, nothing. You try USSD – still nothing.

Service downtime and unavailability have become an all-too-familiar experience for many Nigerians relying on mobile banking and fintech platforms.

We depend on workable payment systems in Nigeria’s growing digital banking space. But what happens when they don’t?

Let’s break down what you’re entitled to, what banks and fintechs are responsible for, and what regulators are doing or should be doing about it.

What Does the Law Say About Uptime and Availability?

In plain terms, “uptime” means how often a service works, and in Nigeria, the law doesn’t take downtime lightly.

The Central Bank of Nigeria (CBN) requires:

1. Mobile Money Operators (MMOs) and the Nigeria Inter-Bank Settlement System (NIBSS) must maintain 99.99% uptime.
2. Nigeria Central Switch (NCS) is to maintain at least 99% daily uptime.
3. Banks and fintechs connected to the NCS, including those using NIBSS, ensure a daily minimum of a 97% transaction success rate.

Insight: A 97% success rate sounds high, but it is more demanding than a 97% uptime. Systems can be “up,” but still fail to complete transactions. That’s what frustrates customers the most.

 But What Happens When Banks Don’t Meet These Standards?

From our experience handling fintech disputes and contracts, we know many service providers don’t want to guarantee uptime contractually.

That leaves customers without real remedies when things go wrong. And downtime happens more than it should.

Real-Life Downtime Stories

Zenith Bank – September 2024

Despite informing customers about planned maintenance between September 29 and October 1, users complained of access issues that lasted longer than expected. Payments hung, transfers failed, and communication was unclear.

 GTBank – October 2024

GTBank made a significant system upgrade meant to improve things but left customers stranded. For days, many couldn’t make payments or view their balances. Social media buzzed with complaints and even jokes, but the frustration was real.

Access Bank – February 2025

Though the bank gave notice about its system upgrade, customers were blindsided by how widespread the downtime was. Even routine tasks like checking balances or paying bills became impossible.

Lesson: Even with planned maintenance, if customers can’t access basic services or get clear updates, the relationship suffers, and so does trust – and banks are liable to customers.

Your Rights Under the Law

Under CBN Regulations made under BOFIA 2020:

Banks and fintechs must provide minimum levels of service. Downtime that drops below these levels isn’t just frustrating—it’s a breach of legal duty.

Under the FCCPA 2018:

A “consumer” is not just the account holder. Customers include anyone who uses or benefits from the service. That means:

1. You have a right to timely service notifications.
2. You’re entitled to quality service and minimum uptime.
3. You can seek redress if service failures cause losses.

Yes, even a beneficiary of a money transfer has rights!

The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns about repeated service disruptions and warned banks that poor service violates consumer protection laws.

But here’s the catch: the CBN is the primary regulator for banks and fintechs, even regarding consumer issues. While it can delegate powers to the FCCPC, it hasn’t always done so consistently.

How Banks Can Do Better

Here’s what banks and fintech should be doing to keep customers informed and satisfied during downtimes:

1. Proactive Communication: Send clear and early notices about planned maintenance or upgrades.
2. Real-Time Updates: During service disruptions, use social media, SMS, or emails to update customers.
3. Backup Options: Offer USSD alternatives, ATM access, or manual banking routes when digital channels fail.
4. Post-Downtime Support: Help customers resolve pending transactions or refund failed payments without delays.

So, What Can You Do as a Consumer?

1. Keep screenshots and records of failed transactions.
2. Report recurring issues to your bank; if ignored, escalate them to the CBN Consumer Protection Department or the FCCPC.
3. Ask your bank for a Service Level Agreement (SLA) if you run a business.
4. Hold institutions accountable – your inconvenience has legal weight.

Final Thoughts

In a digital economy, trust is everything. Banks and fintechs must not only build tech but also build trust, especially during downtimes.

Consumers, meanwhile, should know their rights and speak up. After all, downtime isn’t just a technical issue, it affects real people, real businesses, and real lives.

Pin it down📌: Need help recovering funds or addressing a service failure? Reach out to a fintech lawyer. At SRJ Legal, we focus on fintech and online banking law.

We complement our fintech and online banking practice with education law and commercial litigation (dispute). At the same time, we provide corporate counsel services to businesses and individuals, including families.