Court Declares Banks, Financial Institutions Accountable To FCCPC

A Federal High Court sitting in Abuja has affirmed the authority of the Federal Competition and Consumer Protection Commission (FCCPC) to investigate complaints lodged by bank customers against financial institutions, reinforcing the Commission’s role in safeguarding consumer rights within the financial sector. According to Ireporter Online, the court held that banks and other financial institutions are answerable to the FCCPC in matters relating to consumer protection and competition.

The ruling followed a suit instituted by United Bank for Africa (UBA), which challenged the Commission’s jurisdiction over licensed financial institutions. Delivering judgment, Justice James Omotosho dismissed the case in its entirety and imposed a fine of N2 million on the bank, describing the action as lacking merit.

The court examined relevant provisions of the 1999 Constitution, as amended, and the Banks and Other Financial Institutions Act (BOFIA) 2020, concluding that these laws do not exclude the FCCPC from exercising its statutory mandate within the financial sector. It further clarified that no existing legislation grants the Central Bank of Nigeria exclusive authority to handle consumer complaints, thereby affirming the FCCPC as the appropriate body for such matters.

The judgment also emphasized that the Federal Competition and Consumer Protection Act (FCCPA) 2018 empowers the Commission to address issues concerning consumer rights and competition, with its provisions taking precedence over conflicting laws in related matters.

Reacting to the decision, FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, described the verdict as a major milestone for consumer protection, noting that it strengthens confidence in accessible channels for dispute resolution across sectors, including banking. He added that the ruling provides clarity on the complementary roles of sector regulators and consumer protection authorities, while promoting accountability and trust within the marketplace.

Bello further stated that the Commission remains committed to engaging financial institutions in a fair and professional manner, while encouraging improved internal mechanisms for resolving customer complaints promptly.