A Federal High Court in Abuja has affirmed the authority of the Federal Competition and Consumer Protection Commission over banks and other financial institutions, delivering what officials describe as a significant victory for consumer rights in Nigeria’s financial sector.
In a judgement delivered by Justice James Omotosho, the court dismissed a suit filed by United Bank for Africa, which had challenged the jurisdiction of the Commission to investigate complaints involving licensed banks.
The case, marked FHC/ABJ/CS/1972/2025, sought to determine whether, under Section 251(1)(d) of the Constitution and Section 65(1)(a) of the Banks and Other Financial Institutions Act (BOFIA) 2020, the FCCPC could exercise oversight over the operations and services of a commercial bank regulated by the Central Bank of Nigeria.
In a decisive ruling, Justice Omotosho rejected the bank’s arguments and upheld the Commission’s statutory powers in matters of consumer protection and competition within the financial sector.
“The FCCPC is vested with statutory powers to inquire into consumer protection issues involving customers and banks,” the judge held, adding that no provision in BOFIA or the Central Bank of Nigeria Act assigns such responsibilities to the apex bank.
He further stated: “There is no other agency in Nigeria saddled with the responsibility of receiving and investigating consumer complaints in this regard except the FCCPC.”
The court also imposed a fine of N2 million on UBA, describing the suit as “frivolous and unmeritorious”.
Justice Omotosho referenced key provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018, including Sections 1, 2, 17(e) and 104, which outline the Commission’s mandate and establish its authority in all matters relating to consumer protection, notwithstanding conflicting provisions in other laws.
Section 104 of the Act provides that its provisions shall override those of any other law in matters concerning competition and consumer protection, subject to the Constitution.
Reacting to the judgement, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, described the ruling as a major boost for bank customers across the country.
“This is a significant milestone in our advocacy for bank customers who have for long endured unfair treatment,” Bello said.
He added that the judgement offers clarity on the relationship between sector regulators and consumer protection agencies, reinforcing the role of the FCCPC as the primary body for addressing consumer grievances.
“The decision strengthens confidence that consumers in every sector, including financial services, are entitled to accessible channels for complaint resolution and lawful redress,” he said.
Bello also noted that the ruling has broader implications for the business environment, stressing that accountability and consumer trust are essential to a well-functioning market.
According to him, the Commission will continue to engage financial institutions in a fair and professional manner, while encouraging them to strengthen internal mechanisms for resolving customer complaints promptly.
The judgement is expected to shape future interactions between financial institutions and regulators, while reinforcing the rights of consumers to seek redress in disputes involving banking services.
