The Federal High Court Nigeria sitting in Abuja has ruled that banks operating in Nigeria fall within the regulatory jurisdiction of the Federal Competition and Consumer Protection Commission, reinforcing the commission’s authority to address consumer-related complaints within the financial sector.
In its judgment, the court dismissed a suit filed by United Bank for Africa Plc (UBA), which had challenged the FCCPC’s oversight powers. The court further imposed a fine of N2 million on the bank, describing the action as frivolous.
The case, identified as FHC/ABJ/CS/1972/2025, centred on whether the FCCPC possesses the legal authority to regulate aspects of the operations, products, and services of a bank licensed by the Central Bank of Nigeria. Delivering the ruling, Justice James Omotosho rejected the bank’s arguments, which were based on Section 251(1)(d) of the 1999 Constitution and Section 65(1)(a) of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The court instead relied on provisions of the Federal Competition and Consumer Protection Act (FCCPA), specifically Sections 1, 2, 17(e), and 104, which confer broad authority on the FCCPC in matters relating to competition and consumer protection. The judge held that these provisions grant the commission overriding powers that take precedence over conflicting statutory frameworks.
“No other agency handles consumer complaints except the FCCPC. Neither BOFIA nor the CBN Act grants such powers to the Central Bank,” the judge stated.
In response to the decision, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, described the judgment as a significant development for consumers within the banking sector.
He noted that the ruling clarifies the relationship between sector-specific regulators and consumer protection authorities, ensuring that individuals have access to effective channels for redress.
Bello further emphasised that the decision strengthens the overall health of the market by reinforcing accountability and enhancing consumer confidence, while also reaffirming the commission’s commitment to maintaining fair and transparent engagement with financial institutions.
