Federal Court Upholds FCCPC’s Authority Over Consumer Complaints Against Banks
Consumer advocacy in Nigeria’s banking sector gained significant traction on Wednesday as the Federal High Court in Abuja dismissed a lawsuit by United Bank for Africa (UBA) challenging the jurisdiction of the Federal Competition and Consumer Protection Commission (FCCPC).
Chief Justice James Omotosho’s ruling affirmed the FCCPC’s authority to investigate consumer complaints regarding banks and other financial institutions. The case, referenced as FHC/ABJ/CS/1972/2025, sought to clarify whether the FCCPC had the legal basis to exercise its jurisdiction based on Article 251(1)(d) of the 1999 Constitution of the Federal Republic of Nigeria (as amended in 2023) and Article 65(1)(a) of the Banks and Other Financial Institutions Act, 2020 (BOFIA). UBA, a commercial bank licensed by the Central Bank of Nigeria (CBN), aimed to challenge the FCCPC’s jurisdiction concerning its operations and financial products.
In his judgment, Justice Omotosho upheld the commission’s authority under competition and consumer protection laws. He noted that neither the Banks and Other Financial Institutions Act nor the Central Bank of Nigeria Act grants the CBN the power to address such consumer complaints, reinforcing the FCCPC’s unique role in this domain.
The court imposed a fine of NOK 2 million on UBA for initiating “frivolous and dishonorable proceedings” against the FCCPC, underlining the seriousness of the legal challenge made by the bank.
Justice Omotosho emphasized that the FCCPC is the sole agency in Nigeria tasked with handling the receipt and investigation of consumer complaints. The judge pointed out that this responsibility does not extend to the CBN, thereby reinforcing the FCCPC’s mandate to protect consumers within the financial sector. He stated, “Accordingly, the FCCPC is the appropriate agency to investigate such consumer complaints.”
He cited several sections of the Federal Competition and Consumer Protection Act of 2018 (FCCPA) to underscore the commission’s investigative powers regarding consumer protection matters. Notably, Section 104 of the FCCPA establishes that the provisions of the Constitution of Nigeria prevail in matters related to competition and consumer protection, further solidifying the FCCPC’s jurisdiction.
Tanji Bello, Executive Vice Chairman and CEO of the FCCPC, hailed the ruling as a pivotal moment in advocating for bank customers who have faced unfair treatment. He indicated that the decision clarifies the interplay between sector regulation and the consumer protection framework mandated by the FCCPA.
Bello expressed his commitment to ensuring that consumers across all economic sectors, including financial services, have access to effective channels for grievance resolution and legal recourse. He noted that this ruling reinforces the necessity for regulatory accountability, which ultimately fosters consumer confidence and a healthier market environment.
Moving forward, the commission plans to maintain professional and equitable engagements with financial institutions, while promoting internal complaint resolution mechanisms that swiftly address consumer issues.
