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Detty December: How fraud, disputes mar Nigeria’s festive reputation

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Deity December: How fraud, disputes mar Nigeria’s festive reputation

“From overpricing services to outright scams, some individuals see this season as an opportunity to take advantage of others. It’s no surprise that we are experiencing a surge in chargebacks and disputes,” comments controversial investigative journalist David Hundeyin in a recent extensive tweet.

 

Beneath the glitz and glamour of ‘Detty December’ lies a troubling underbelly—one plagued by criminal behavior, financial fraud, and systemic inefficiencies. This piece addresses these issues by drawing on key conversations, expert opinions, and firsthand accounts.

Bizzle Osikoya’s Frustrations: A Chargeback Epidemic

Music executive Bizzle Osikoya recently expressed his frustration over a concerning increase in chargeback disputes during the festive season. Chargebacks occur when customers dispute transactions, often claiming they were unauthorized or that the promised services were not delivered. While this system is designed to protect consumers, it has been exploited by some as a means of fraud.

Osikoya shared on X (formerly Twitter): “I’ve received over 10 chargeback notifications this week. One person even disputed $690 after attending a show. These are the same individuals who shout ‘Support Nigerian businesses.’ Hypocrisy!”

His complaints sparked debates across social media. A Facebook user, Tayo Adeyemi, commented: “This is why Nigerian businesses hesitate to deal with foreign customers. One bad apple spoils the bunch.” Another user on Reddit remarked, “Chargebacks hurt small businesses the most. Many are barely surviving with high electricity and rent costs.”

David Hundeyin’s Exposé: A Culture of Excess and Exploitation

Investigative journalist David Hundeyin recently addressed the exploitative tendencies associated with “Detty December.” In his thought-provoking post, he highlighted how the season’s emphasis on luxury and status often leads to unethical behaviors, including financial fraud.

“Detty December has turned into a hustle for many. From overpricing services to outright scams, some people view this season as an opportunity to exploit others. It’s no surprise that we are seeing a surge in chargebacks and disputes.”

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The Role of Nigerian Banks and Payment Systems

Nigerian banks often find themselves in a difficult position when dealing with chargeback disputes. Many business owners express frustration that banks do not offer adequate support in challenging questionable claims, especially in cases involving international banks.

A senior Nigerian banker, who requested anonymity, explained, “When disputes are filed with foreign banks, they tend to favor their own customers, particularly if the transactions originate from Nigeria. The perception of Nigeria as a high-risk country for fraud significantly influences this bias. As a result, genuine merchants often suffer losses, even when they present solid evidence.”

To tackle this issue, some banks have implemented secure payment gateways that require additional authentication. However, the adoption of these systems has been slow among small businesses.

Impact on Local Businesses

The ripple effects of fraudulent chargebacks are felt across various sectors. Amaka Obi, a Lagos-based event planner, shared her experience: “Last year, I organized a wedding for a client who had just returned from abroad. They paid in dollars, but a month later, I received a chargeback claim stating that I hadn’t delivered the services. How do you prove that you planned an entire wedding? I lost over $2,000 because my bank said there wasn’t enough evidence to dispute the chargeback.”

Similarly, a hotel manager in Abuja recounted, “During December, we’re fully booked with returning Nigerians. However, in January, we begin to see multiple chargeback notifications. It’s heartbreaking because these claims are often false.”

The Global Perception Problem Of Nigeria’s Security Risk

Nigeria’s reputation as a high-risk country for fraud significantly impacts how disputes are handled by foreign banks. A US-based financial analyst, Sarah Mitchell, explained:

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“Nigeria’s high rate of online scams has made international banks cautious. When a dispute involves a Nigerian merchant, the default assumption is often that the customer is right. This bias is hard to overcome.”

This perception not only hurts businesses but also undermines efforts to attract foreign investments and boost tourism.

The Ministry of Tourism’s Missed Opportunities

The Ministry of Tourism has played a key role in promoting “Detty December” as an international brand. However, critics argue that it has not adequately addressed the systemic issues that arise during and after the festive season.

Tourism expert Olumide Babalola suggested, “The ministry should collaborate with financial institutions to create a centralized system for resolving disputes. They should also educate merchants on the importance of proper documentation and secure payment methods.”

This situation is reminiscent of South Africa’s experience in 2021, when their tourism sector faced a surge in fraudulent claims after the holiday season. In response, the government worked with banks to implement stricter verification processes, which significantly reduced the number of disputes.

Experts believe that the way forward should include strengthening the payment systems, which involves banks implementing secure payment gateways and offering better support for merchants during disputes.

They also think that improving documentation ensures that businesses have proper receipts and evidence for every transaction.

According to them, rebranding Nigeria’s image, which involves the government and the private sector can help reduce the perception of Nigeria as a high-risk country.

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Educate Merchants and Consumers they agree can promote ethical behavior and help reduce fraudulent practices.