Cashless Policy and Consumer Protection: A Critical Appraisal of the Nigerian Cyber Laws

Ifeoluwa Etomilade-Oduola

doi:10.7176/jlpg/100-02

Abstract

This article in discussing the transitioning of Nigeria to a cashless economy, considers the regulatory framework in place to protect consumers from cybercrimes that surfaced with the policy. A critical appraisal of the existing cyber laws in Nigeria showed consumers have been left in the loop, whilst the law has failed to effectively protect bank consumers from the onslaught of cybercrimes which accompanied the cashless policy. An analysis of the consumer protection framework especially those issued by the Central Bank of Nigeria revealed inadequate protective mechanism for consumers whilst the required standard for compliance by banks has been evasive. Amongst the recommendations given is the need to specify the standards required for banks for effective consumer protection while a specified body should be created to ensure strict compliance. This article concludes by emphasizing that even though a cashless economy is of immense benefit, there is need for banks to put appropriate infrastructures in place that will shield its consumers from cybercrimes and enhance consumer confidence in financial institutions generally. Keywords : Cashless Economy, Bank Customers, Cybercrimes, Cyber laws, Central Bank of Nigeria, Consumer Protection. DOI: 10.7176/JLPG/100-02 Publication date: August 31 st 2020

Highlights

Over the years there have been series of reforms in the financial industry by the Central Bank of Nigeria (CBN) aimed at ensuring the industry meet up with international best practices and the nation’s vision 2020 and protect consumers, the recipients of this policy
Recommendations and Conclusion Having identified the benefits of operating a cashless economy in Nigeria, the problem of cybercrime that bank customers are exposed to for e-transactions and the pitfalls of the 2015 Cybercrime Act introduced to address the problem of cybercrime, this paper makes the following recommendations that will guarantee adequate www.iiste.org protection for bank customers in Nigeria; a
The CBN guideline on electronic banking is very inadequate for cybercrimes, as such there is need for the CBN to elaborate more on the standard required on security issues associated with the deployment of software by financial institutions (FIs)

Summary

Introduction

Over the years there have been series of reforms in the financial industry by the Central Bank of Nigeria (CBN) aimed at ensuring the industry meet up with international best practices and the nation’s vision 2020 and protect consumers, the recipients of this policy. With the introduction of the cashless policy, transacting at the cyberspace through electronic devices became necessity, at a cost to consumers who became exposed to cybercrimes (or computer related crimes) like spamming, cloning, phishing, identity theft etc with little or no regulatory framework in place to protect consumers.

Results

Conclusion