Court affirms FCCPC’s authority to investigate bank customers’ complaints

Advocacy for consumer rights in the banking sector recorded a major boost on Wednesday with a judgement by a Federal High Court in Abuja dismissing a suit by UBA Plc seeking to contest the jurisdiction of the Federal Competition and Consumer Protection Commission (FCCPC).

In its ruling, presiding Justice James Omotosho affirmed the Commission’s statutory authority to investigate consumer complaints involving banks and other financial institutions.

In the suit, FHC/ABJ/CS/1972/2025, United Bank of Africa Plc sought to determine whether in light of Section 251 (1) (d) of the 1999 Constitution of the Federal Republic of Nigeria (as amended 2023) and Section 65(1)(a) of the Banks and Other Financial Institutions Act (BOFIA) 2020, the FCCPC could validly exercise jurisdiction over a commercial bank duly licensed by the Central Bank of Nigeria (CBN) and over any of its functions, acts, financial products, or financial services.

A statement by the FCCPC said Justice Omotosho considered Sections 251 (1) (d) of the Constitution and 65(1)(a) of BOFIA, which the plaintiff had relied upon to challenge the Commission’s jurisdiction, and upheld the authority of the FCCPC in competition and consumer protection matters in the financial sector.

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Consequently, the statement added, UBA plc was fined N2 million for “bringing a frivolous and unmeritorious case against the defendant”.

With respect to receiving and investigating consumer complaints, the court stressed that no other agency in Nigeria is saddled with this responsibility except the FCCPC.

“No portion of the Banks and Other Financial Institutions Act gives such powers to the Central Bank of Nigeria, nor does the Central Bank of Nigeria Act,” said Justice Omotosho.

“The FCCPC (Defendant) is therefore the proper agency to investigate such consumer complaints,” the judge held.

He therefore held that the FCCPC “is vested with statutory powers to inquire into Consumer Protection issues involving customers and banks.”

Justice Omotosho cited Sections 1, 2, 17(e) and 104 of the Federal Competition and Consumer Protection Act, 2018 (FCCPA), relating to the objectives, scope, investigative powers and application of the Commission’s mandate in matters concerning competition and consumer protection.

Section 104 of the FCCPC Act states that “Notwithstanding the provisions of any other law but subject to the provisions of the Constitution of the Federal Republic of Nigeria, in all matters relating to competition and consumer protection, the provisions of this Act shall override the provisions of any other law.”

In a swift reaction, the Executive Vice Chairman/CEO of FCCPC, Tunji Bello, hailed the judgment, describing it as “a significant milestone in our advocacy for bank customers who have long endured unfair treatment.”

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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.