Bello hails as court rules banks answerable to FCCPC

From Fred Ezeh, Abuja

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

In its ruling, presiding judge, 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, UBA 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.

In his judgement, 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.

Consequently, 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 there is no other agency in Nigeria 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, not even the Central Bank of Nigeria Act.

“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.”

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, 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 was 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 would 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.