LEGAL CHALLENGES POSED BY ELECTRONIC BANKING IN NIGERIA

Abstract

Electronic banking has come to stay in Nigeria. Is the Nigerian legal system, especially the law of banking, properly structured to address the legal challenges that arise from the use of electronic banking? Thankfully, the recently passed Cybercrimes (Prohibition, Prevention, etc) Act 2015 has covered some of the criminal aspect of electronic banking by its penal provisions. However, in bank/customer relationship, the ability for any aggrieved party to seek redress for a civil wrong inn a court of law must be met by adequate legal provisions in the area of civil law that deal with such dispute.

This article looks at the evolvement of banking business in Nigeria, from the hitherto customer-bank teller relationship to the prevalence of platforms for electronic banking, outside banking halls and note that the Banking and Other Financial Institutions Act (BOFIA) is outdated in regards to electronic banking. This work also examines the several legal challenges that arise from electronic banking, especially in the area of inadequacy of substantive law, criminal law, money laundering/terrorism, electronic signature and consumer protection.