Major court decision redefines who holds banks accountable

A Federal High Court in Abuja has dismissed a suit filed by United Bank for Africa Plc challenging the authority of the Federal Competition and Consumer Protection Commission (FCCPC), in a ruling that reinforces consumer rights in Nigeria’s banking sector.

In a statement issued by the Commission, Justice James Omotosho upheld the FCCPC’s statutory powers to investigate complaints involving banks and other financial institutions.

The case, marked FHC/ABJ/CS/1972/2025, sought to determine whether the FCCPC could exercise jurisdiction over a bank regulated by the Central Bank of Nigeria (CBN), particularly in light of provisions in the 1999 Constitution and the Banks and Other Financial Institutions Act (BOFIA) 2020.

However, the court ruled that the Commission retains full authority in matters relating to competition and consumer protection, even within the financial services sector.

Justice Omotosho noted that no existing law assigns the responsibility of receiving and investigating consumer complaints against banks to the CBN, affirming that the FCCPC is the appropriate agency for such functions.

“The FCCPC is vested with statutory powers to inquire into consumer protection issues involving customers and banks,” the judge held.

The court also fined UBA N2 million for filing what it described as a frivolous and unmeritorious suit.

In his judgment, the judge referenced key provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018, particularly Section 104, which establishes the Commission’s authority as overriding in matters of competition and consumer protection.

Reacting to the ruling, FCCPC Executive Vice Chairman and CEO, Tunji Bello, described it as a major boost for consumer rights, especially for bank customers who have faced unfair practices.

He said the judgment clarifies the relationship between sector regulators and consumer protection agencies, reinforcing the need for accountability and transparency across industries.

Bello added that the Commission remains committed to engaging financial institutions fairly while promoting effective complaint resolution systems that address consumer concerns promptly.

The development follows a similar ruling in which the court dismissed a case filed by Air Peace, affirming the FCCPC’s authority to investigate consumer complaints and enforce compliance within its mandate.