Court rules FCCPC has mandate to probe banks, slams UBA with N2m fine

Advocacy for consumer rights in Nigeria’s banking sector received a major boost on Wednesday as the Federal High Court in Abuja dismissed, in its entirety, a suit filed by United Bank for Africa (UBA) Plc challenging the jurisdiction of the Federal Competition and Consumer Protection Commission (FCCPC).

The court also awarded a N2 million fine against the bank for filing what it described as a frivolous case.

This was disclosed in a statement signed by Ondaje Ijagwu, Director, Corporate Affairs, FCCPC.

Delivering judgment in suit FHC/ABJ/CS/1972/2025, Justice James Omotosho affirmed that the FCCPC has statutory authority to investigate consumer complaints involving banks and other financial institutions in Nigeria.

UBA had approached the court seeking to determine whether, in light of Section 251(1)(d) of the 1999 Constitution (as amended) and Section 65(1)(a) of the Banks and Other Financial Institutions Act (BOFIA) 2020, the FCCPC could lawfully exercise jurisdiction over commercial banks licensed by the Central Bank of Nigeria (CBN), including matters relating to their operations, financial products, and services.

However, the court resolved the issue in favour of the FCCPC, holding that the Commission is legally empowered to handle consumer protection and competition-related issues across sectors, including the financial industry.

Justice Omotosho, in his ruling, examined the constitutional and statutory provisions cited by UBA and found that they did not strip the FCCPC of its mandate. 

He further referenced key provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018, including Sections 1, 2, 17(e), and 104, which define the Commission’s objectives, powers, and overriding authority in consumer protection matters.

The judge stressed that the FCCPC remains the appropriate body to receive and investigate consumer complaints against banks, noting that no provision in BOFIA or the CBN Act transfers such responsibility exclusively to the Central Bank of Nigeria.

“No portion of the Banks and Other Financial Institutions Act gives such powers to the Central Bank of Nigeria, nor does the Central Bank of Nigeria Act.

“The FCCPC (Defendant) is therefore the proper agency to investigate such consumer complaints

He therefore held that the FCCPC “is vested with statutory powers to inquire into Consumer Protection issues involving customers and banks,”the judge held. 

He added that the FCCPC is vested with statutory powers to inquire into consumer protection issues involving customers and banks.

He further relied on Section 104 of the FCCPA, which provides that the Act takes precedence over other laws in all matters relating to competition and consumer protection, subject only to the Constitution.

“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,” he stated 

Consequently, the court dismissed UBA’s suit for lacking merit and described it as an abuse of judicial process. It also imposed a N2 million fine on the bank for filing a frivolous action against the FCCPC.

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

He said the decision provides clear judicial backing for the Commission’s role in addressing consumer complaints and reinforces the complementary relationship between sector regulators and the FCCPC under the law.

According to him, the ruling restores confidence that consumers in the banking sector and other industries have access to effective redress mechanisms when aggrieved.

Bello added that the judgment also clarifies that regulatory accountability and consumer protection are essential and mutually reinforcing elements of a functional market system.

He assured that the Commission will continue to engage financial institutions and other service providers in a professional and fair manner, while encouraging stronger internal dispute resolution systems to ensure timely responses to customer complaints.