A landmark judgment by the Federal High Court in Abuja has reinforced consumer protection in Nigeria’s banking sector, affirming that financial institutions are subject to oversight by the Federal Competition and Consumer Protection Commission (FCCPC).
In a decisive ruling, Justice James Omotosho dismissed a suit filed by United Bank for Africa (UBA), Plc, which had challenged the FCCPC’s jurisdiction over banks. The court described the case as “frivolous and unmeritorious,” imposing a ₦2 million fine on UBA.
Background of the Case
The suit, marked FHC/ABJ/CS/1972/2025, sought judicial clarification on whether the FCCPC could exercise authority over a commercial bank licensed by the Central Bank of Nigeria (CBN). UBA relied on provisions of:
- Section 251(1)(d) of the 1999 Constitution (as amended)
- Section 65(1)(a) of the Banks and Other Financial Institutions Act (BOFIA), 2020
The bank argued that these laws limited regulatory oversight of banks to the CBN, thereby excluding the FCCPC from intervening in banking-related consumer issues.
Court’s Ruling
Justice Omotosho rejected UBA’s arguments and upheld the FCCPC’s statutory mandate. In his judgment, he emphasized that:
- The FCCPC is legally empowered to investigate consumer complaints across sectors, including banking.
- Neither BOFIA nor the CBN Act assigns consumer protection responsibilities to the Central Bank.
- The FCCPC Act (2018), explicitly grants the Commission authority over competition and consumer protection matters.
Citing key provisions of the FCCPC Act—particularly Sections 1, 2, 17(e), and 104—the court noted that the law overrides conflicting statutes in matters relating to consumer protection.
The judge concluded unequivocally that:
“The FCCPC is the proper agency to investigate such consumer complaints.”
Implications for the Banking Sector
This ruling clarifies the relationship between financial regulation and consumer protection in Nigeria:
- Dual Oversight Framework: While the CBN regulates banking operations and financial stability, the FCCPC handles consumer rights and competition issues.
- Expanded Accountability: Banks are now clearly accountable to the FCCPC for how they treat customers.
- Stronger Consumer Protection: Customers have a confirmed avenue for redress outside traditional banking regulators.
FCCPC’s Reaction
The Executive Vice Chairman/CEO of the FCCPC, Tunji Bello, welcomed the judgment, describing it as a major victory for consumers.
According to him, the ruling:
- Strengthens confidence in consumer protection mechanisms
- Affirms that all sectors, including financial services, must uphold consumer rights
- Highlights the importance of accessible complaint resolution systems
He also noted that the decision benefits businesses by reinforcing trust and accountability as essential components of a healthy market.
Conclusion
The Federal High Court’s decision marks a significant shift in Nigeria’s regulatory landscape. By affirming the FCCPC’s authority over banks, the judgment closes a critical gap in consumer protection and ensures that financial institutions are held accountable not just for compliance with banking regulations, but also for fair treatment of their customers.
For Nigerian bank customers, this ruling represents a strengthened safety net and a clearer path to justice in cases of unfair practices.
