A Federal High Court in Abuja has reinforced the powers of the Federal Competition and Consumer Protection Commission (Federal Competition and Consumer Protection Commission) to investigate consumer complaints involving banks, ruling that its mandate extends fully to the banking sector despite existing regulatory frameworks.
Delivering judgment in suit FHC/ABJ/CS/1972/2025, Justice James Omotosho held that the commission is legally empowered under the Federal Competition and Consumer Protection Act (FCCPA) 2018 to handle consumer protection issues across industries, including financial services regulated by the Central Bank of Nigeria (Central Bank of Nigeria).
The case was filed by United Bank for Africa, which had sought judicial clarification on whether the FCCPC could lawfully exercise jurisdiction over banks licensed under the Banks and Other Financial Institutions Act (BOFIA) 2020. The bank argued that such oversight fell exclusively within the remit of the Central Bank.
However, the court dismissed the suit in its entirety, describing it as unmeritorious, and imposed a ₦2 million fine on UBA for what it termed a frivolous action.
Court clarifies regulatory overlap
In his ruling, Justice Omotosho held that no provision in BOFIA or the CBN Act grants exclusive authority to the Central Bank over consumer complaint investigations. He further stated that the FCCPA expressly empowers the consumer protection agency to act across sectors.
Citing Section 104 of the FCCPA, the court emphasized that the law supersedes other statutes in matters of competition and consumer protection, subject only to the constitution.
“The FCCPC is therefore the proper agency to investigate such consumer complaints,” the judge ruled, effectively affirming its cross-sector jurisdiction.
Regulatory implications for the financial sector
The judgment is seen as a significant clarification of regulatory boundaries between sector-specific regulators like the CBN and cross-cutting agencies such as the FCCPC. It effectively confirms that banks remain subject to consumer protection oversight beyond traditional banking supervision frameworks.
Reacting to the ruling, FCCPC Executive Vice Chairman and CEO Tunji Bello described the decision as a landmark victory for consumer rights, particularly for bank customers who frequently rely on regulatory intervention in disputes with financial institutions.
He added that the ruling strengthens public confidence in Nigeria’s consumer protection system and reinforces the need for banks to improve internal complaint resolution mechanisms.
Broader significance
The decision is expected to shape how regulatory overlap is interpreted in Nigeria’s financial sector, particularly in cases where consumer protection and banking supervision intersect. It also reinforces the FCCPC’s expanding role in enforcing fair market practices across regulated industries, including aviation, telecommunications, and banking.