E-Financial
AfDB Approves Policy for Victims of Bank-financed Operations
The Board of Directors of the African Development Bank Group has approved a new policy framework for the Independent Recourse Mechanism.
The IRM provides individuals or communities who are adversely affected by bank-financed operations with an independent mechanism through which they can raise their concerns.
They can also seek redress and hold the bank to account for ensuring it complies with its policies and procedures related to sustainability.
The new policy is aimed at strengthening accountability and providing more effective recourse to people affected by bank-financed operations.
According to a statement from the AfDB on Friday, the policy framework is the result of series of internal and public stakeholder consultations that began in December 2019.
This process was part of the third policy review of the bank’s Independent Review Mechanism.
It further marked the first time that the IRM had engaged in such a comprehensive public consultation process.
David Simpson, Director, Compliance Review and Mediation Unit, AfDB, said the new policy represented a significant step forward for the IRM.
“The new policy framework restructures the complaints’ mechanism, to make it more accessible, efficient and predictable.
“It also simplifies the complaint process for users of the Independent Recourse Mechanism,while enhancing its transparency, and providing clearer guidelines for case management.”
Stephanie Amoako, a Senior Policy Associate at Accountability Counsel, an international civil society organisation said: “The new accountability policy, if properly implemented, better serves the needs of communities across Africa.
” This is by removing barriers to access the IRM and creating a more equitable process for those using the mechanism.”
Accountability Counsel supports communities adversely impacted by internationally financed projects.
According to the statement, a new name accompanies the new policy as the Independent Review Mechanism will now be known as ” the Independent Recourse Mechanism.”
The new mechanism has been restructured, replacing the previous external experts panel model with a fully integrated unit that will now lead all problem-solving and compliance review functions.
The new policy strengthens accessibility for complainants by allowing complaints to be filed by a single person.
It enables the mechanism to advise communities on how to submit complaints if needed.
It adopts a zero-tolerance standard for retaliation against complainants and rejects any form of threats.
It also rejects intimidation, harassment, violence, or discrimination towards those that raise concerns through the Independent Recourse Mechanism.
The mechanism also requires AfDB management to make the IRM better known among affected communities by disclosing information about the mechanism at a project level.
Furthermore, the new operational rules and procedures approved by AfDB’s board also provides the IRM with some advantages.
For istance, it has the ability to initiate compliance review processes in certain circumstances without a formal complaint from affected communities.
It also increases complainants’ participation in the complaint-handling process by allowing them the opportunity to comment on draft compliance review reports before they go to the board.
The operational rules and procedures also commit the IRM to pursue a culturally appropriate and gender-sensitive complaint process.
It allows the IRM to consider a complaint’s eligibility even in the case of parallel judicial or non-judicial proceedings.
It further empowers the IRM to make recommendations to the bank on issues related to redress and remedy.
“That is when individuals and communities are adversely impacted as a result of bank-financed operations.
“As well as ensure that agreements reached by parties in problem-solving activities are aligned to international norms,” it added.
While the new policy enters into force with immediate effect and would apply to all new complaints, it is expected that the IRM would require a reasonable transition period to fully implement the new policy.
Where appropriate, ongoing complaints will be transitioned to the new policy over time.
The bank’s complaint mechanism became operational in 2006 and has received over 100 complaints submitted by civil society organisations and affected communities.
The mandate of the IRM covers both public and private sector operations of the bank group.
In line with passion and aspiration of the National Insurance Commission (NAICOM) to achieve financial inclusion among Nigerians especially Nigerian women, Leadway Assurance, has partnered with Wafira Ntaba Limited a marketing firm to launch a bespoken insurance policy for Nigerian women.
The product, Leadway Plan B Insurance policy, comes in simplified and affordable packages for as low as N26,000 per quarter, broadening financial inclusion and income protection for women-led small to medium-sized enterprises and lifestyle protection for women across different social strata in Nigeria.
Speaking at the media launch of the product, Leadway ‘s Director Sales, Retail and Partnership, Kike Fischer, shed light on the market approach for the Plan B product, saying “one uniqueness of the Plan B product is in its single-wide coverage from risks and perils related to auto insurance, healthcare, personal accident, fire, burglary, life insurance and education cutting across its different product packages – SME, Corporate and Premier packages.”
Also speaking, the visioner behind the Plan B Insurance for Nigerian women, Ayona Aguilera Trimnell shared the inspiration behind the products saying, “Plan B is an idea that has been in development for 10 years.
“As I began exploring insurance products aimed at women in other countries, I recognised the need for an insurance product that promotes financial inclusion in Nigeria, specifically for women. I believed we could create something that addresses their unique concerns.
Women need to understand how insurance can alleviate their worries and the benefits of being insured. I have personally enjoyed the advantages of insurance for over fifteen years, and I believe other women should have the opportunity to experience the same benefits.”
She said both partners could simplify the benefits of the plan B insurance product to help even the uneducated, understand and be convinced to secure their future by becoming a policyholder.
According to her, it has been proven and tested that women too buy insurance, but more women need to be aware and get insured.
On the market approach for the Plan B product, she said she was confident that these products would help women of all classes in Nigeria create and protect wealth, recover from economic challenges, pursue their purposes, and lead their families with peace of mind.
Sage Grey Finance Limited has joined forces with the Bank of Industry to provide accessible and affordable financing solutions for Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.
This partnership, announced in Lagos, aligns with the Federal Government’s MSMEs Fund and aims to bridge the $236 billion funding gap faced by small businesses, fostering economic growth and job creation.
Eligible MSMEs can access loans of up to ₦5 million at a competitive 9% annual interest rate, with loan processing completed within five working days.
The initiative also includes SME advisory services to equip businesses with tools for sustainable growth.
Executive Director Jumo Atiba emphasized the critical role of MSMEs in national development, highlighting the partnership’s potential to stimulate entrepreneurship and unlock grassroots economic potential.
This collaboration reflects Sage Grey Finance’s commitment to financial inclusion and sustainable development.
The partnership builds on Sage Grey’s history of impactful initiatives, including a $200 million gas processing plant project and youth empowerment programs.
By addressing the challenges of financial exclusion, this collaboration is set to drive inclusive economic progress across Nigeria.
It has not been a pleasant week for thousands of Nigerians who have again fallen for another money scam.
According to DUBAWA, a West African independent verification and fact-checking project, several persons on various social media platforms have begun to count their losses as CBEX, a popular digital asset trading platform, reportedly wiped out over N1.3 trillion from Nigerian investors’ accounts.
The platform collapsed after funds disappeared from users’ wallets, withdrawals were postponed, and communication channels were locked.
Taiwo Owolabi, a security analyst, recently released an analysis showing how investors’ funds were diverted through funnel wallets and finally into a central wallet, which now holds a total of $857 million in USDT.
The security expert concluded that CBEX was just another Ponzi scheme.
When CBEX promised a mouth-watering 100 per cent return on crypto investments in 30 days, many Nigerians rushed to invest just like they did with the defunct MMM.
However, despite the crash, CBEX has asked some investors to pay $100 and $200 verification fees to access partial withdrawals.
Now that the chips are down, it’s time to ask: “How did we not see this coming?”
Below are four red flags about CBEX that investors ignored.
- No regulatory approval
CBEX operated without registration or approval from the Securities and Exchange Commission (SEC) or the Central Bank of Nigeria.
Still, many Nigerians invested, assuming legitimacy because the platform looked flashy. This has become a pattern, as in previous cases where Nigerians got duped, the platforms were unregistered.
SEC has since warned Nigerians against investing in unregistered online forex and digital asset platforms, saying that operating such businesses without registration is now illegal under the new Investment and Securities Act (ISA).
Lesson: Always verify a platform’s regulatory status before putting your money in.
- Anonymous founders
CBEX’s website and Application did not list identifiable owners or executives. To gain credibility, CBEX masqueraded as a crypto platform, talking about “blockchain,” “trading bots,” and “AI-powered systems.” However, it had no verifiable trades or links to legitimate crypto exchanges. It used tech jargon to mislead its users.
Lesson: Transparency is a minimum requirement. If you don’t know who runs it, don’t trust it.
- Unrealistic returns on investment, withdrawal issues
While there is no ideal return on investments (ROI), excessively high ROIs or ones that appear too good to be true are usually a call for caution.
CBEX promised investors returns of up to 100 per cent in 30 days. That looks like a classic Ponzi red flag.
As seen in the past, these kinds of returns are unsustainable, but they remain effective bait that can appeal to anyone’s greed.
At first, CBEX worked. Users were getting paid even though Owolabi claimed the platform initially used one investor’s money to pay another until it could not.
Just before the crash, many users reported delays in withdrawing their funds. CBEX blamed this on “system upgrades” and “network issues,” which is a tactic common with failing schemes.
Lesson: High, guaranteed returns are a red flag, and consistent withdrawal delays indicate that the system is drying up. That’s usually when the exit strategy begins.
- Influencer endorsements and peer pressure
The Fear Of Missing Out (FOMO) does not respect age, especially when influencers, friends, and families are involved. However, the misuse of trust through misinformation is common in fraud schemes.
CBEX’s biggest marketing weapon was social media hype and word-of-mouth pressure. The platform relied heavily on trust networks.
From WhatsApp statuses to Facebook pages and TikTok videos, CBEX grew viral through a coordinated network of testimonials. People shared real and fake proof of payment screenshots and emotional success stories.
When friends and family members innocently vouched for it, people ignored other red flags and pumped money into the scheme.
Lesson: Social proof is not due diligence. Always investigate platforms independently, even if people you trust are involved.
Conclusion
CBEX’s collapse is not new; unfortunately, it may not be the last. DUBAWA urges investors to adopt a fact-checking mindset when approached with financial opportunities. Scams thrive on ignorance and trust. Our best defence is verification, not hope.
DUBAWA is a West African independent verification and fact-checking project, initiated by the Centre for Journalism Innovation and Development (CJID) and supported by the most influential newsrooms and civic organisations in West Africa to help amplify the culture of truth in public discourse, public policy, and journalistic practice.
It has a presence in Nigeria, Ghana, Sierra Leone, Liberia and The Gambia.
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