In a major shift for Nigerian banking consumer rights, a Federal High Court in Abuja has dismissed a suit by United Bank for Africa (UBA) Plc, which sought to exempt commercial banks from the oversight of the Federal Competition and Consumer Protection Commission (FCCPC).
The ruling, delivered by Justice James Omotosho in suit FHC/ABJ/CS/1972/2025, not only affirms the FCCPC’s jurisdiction over the ₦33 trillion banking sector but also penalizes UBA with a ₦2 million fine for bringing a “frivolous and unmeritorious” case.
The Legal Conflict: Constitution vs. FCCPA
UBA’s legal team argued that under the 1999 Constitution and the Banks and Other Financial Institutions Act (BOFIA) 2020, only the Central Bank of Nigeria (CBN) should have jurisdiction over the “functions, acts, and financial products” of licensed banks.
The “Override” Clause: Section 104
The cornerstone of the judgment is Section 104 of the FCCPA 2018, which Justice Omotosho cited as the ultimate authority. It states that in all matters relating to competition and consumer protection, the FCCPC Act overrides any other law (except the Constitution).
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End of the Regulatory Vacuum: For years, banks often referred customers back to the CBN’s Consumer Protection Department, which many felt lacked the aggressive investigative mandate of the FCCPC.
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Full Investigative Powers: The FCCPC can now legally issue summons, conduct “search and seizure” operations on bank records, and mandate refunds for unfair charges without being blocked by BOFIA 2020.
In a swift reaction, the Executive Vice Chairman/CEO of FCCPC, Mr Tunji Bello, hailed the judgment, describing it as “a significant milestone in our advocacy for bank customers who have for long endured unfair treatment.”
He said the judgment provides judicial guidance on the complementary relationship between sector regulation and the consumer protection framework established under the FCCPA.
Mr. Bello stated that the decision reinforces confidence that consumers in every sector of the economy, including financial services, are entitled to accessible channels for complaint resolution and lawful redress.
He noted that the judgment is also significant for businesses, as it clarifies that regulatory accountability and consumer confidence are mutually reinforcing pillars of a healthy market environment.
According to him, the Commission will continue to engage financial institutions and other service providers professionally, fairly, and in accordance with due process, while encouraging internal complaint resolution mechanisms that address consumer concerns promptly.
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