Banks fall under FCCPC oversight as court dismisses UBA suit, imposes N2 million fine

By Ifeyinwa Ike

A Federal High Court in Abuja has ruled that banks are fully answerable to the Federal Competition and Consumer Protection Commission (FCCPC), dismissing a case by United Bank for Africa Plc (UBA) that sought to challenge the Commission’s jurisdiction over financial institutions.

The court also fined UBA N2 million for filing what it described as a frivolous and unmeritorious suit.

Presiding Justice James Omotosho held that the FCCPC has statutory authority to investigate consumer complaints involving banks and other financial institutions, reaffirming the Commission’s role under the Federal Competition and Consumer Protection Act (FCCPA), 2018.

The judge dismissed UBA’s argument that the Central Bank of Nigeria’s (CBN) powers under the Banks and Other Financial Institutions Act (BOFIA) excluded FCCPC oversight.

Justice Omotosho stressed that no other agency in Nigeria is constitutionally or statutorily mandated to receive and investigate consumer complaints in the financial sector, noting that neither the Banks and Other Financial Institutions Act nor the Central Bank of Nigeria Act grants such powers to the CBN.

He cited Sections 1, 2, 17(e), and 104 of the FCCPA, including the provision that in matters of competition and consumer protection, the FCCPA overrides other laws unless they are constitutionally entrenched.

Reacting to the judgment, FCCPC Executive Vice Chairman/Chief Executive Officer, Tunji Bello called it a big victory for bank customers and a landmark moment in the fight against unfair treatment in the banking sector.

He said the ruling clarifies that sector regulation by the CBN and consumer protection under the FCCPC are complementary, and that customers across all sectors, including financial services, are entitled to accessible complaint channels and lawful redress.

Bello added that the verdict also benefits businesses, reinforcing the view that regulatory accountability and strong consumer confidence are key to a stable, healthy market.

In a statement, Ondaje Ijagwu
Director, Corporate Affairs, FCCPC pledged the commission’s continuous engagement with financial institutions and other service providers in line with due process, while encouraging internal complaint‑resolution mechanisms that address consumer grievances promptly.