Consumer protection boost as court backs FCCPC, slams UBA ₦2m penalty

 

By Ezurike Ugochukwu 

A Federal High Court in Abuja has affirmed the authority of the Federal Competition and Consumer Protection Commission to investigate consumer complaints in Nigeria’s banking sector, while imposing a ₦2 million fine on United Bank for Africa for filing what it described as a frivolous suit.

Delivering judgment in suit FHC/ABJ/CS/1972/2025, Justice James Omotosho dismissed in its entirety the case instituted by UBA challenging the jurisdiction of the Commission over commercial banks.

UBA had sought the court’s interpretation of provisions of the 1999 Constitution and the Banks and Other Financial Institutions Act (BOFIA) 2020, arguing that only the Central Bank of Nigeria had regulatory oversight on banking operations, including customer-related issues.

However, the court ruled in favour of the FCCPC, holding that the Commission retains statutory powers to address consumer protection and competition matters across all sectors, including the financial industry.

Justice Omotosho held that no provision in BOFIA or the CBN Act confers exclusive authority on the Central Bank to handle consumer complaints, stressing that the FCCPC remains the appropriate agency to receive and investigate such matters.

“The FCCPC is vested with statutory powers to inquire into consumer protection issues involving customers and banks,” the judge ruled, citing relevant provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018.

He further relied on Section 104 of the Act, which establishes its supremacy in matters relating to competition and consumer protection, subject only to the Constitution.

Consequently, the court dismissed UBA’s suit for lacking merit and described it as an abuse of judicial process, awarding ₦2 million in costs against the bank.

Reacting to the judgment, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, described the ruling as a major milestone for consumer rights in Nigeria’s financial sector.

He said the decision provides clear judicial backing for the Commission’s mandate and reinforces the complementary roles of sector regulators and the FCCPC.

According to Bello, the judgment restores confidence that consumers across industries, including banking, have access to effective redress mechanisms when disputes arise.

He added that the ruling underscores the importance of regulatory accountability in building a fair and functional market system, assuring that the Commission will continue to engage financial institutions professionally while encouraging stronger internal complaint resolution frameworks.