Court Dismisses UBA's Suit, Affirms FCCPC Authority Over Banks
A Federal High Court in Abuja has delivered a landmark judgment that significantly bolsters consumer rights advocacy within Nigeria's banking sector. On Wednesday, presiding Justice James Omotosho dismissed in its entirety a suit filed by United Bank for Africa (UBA) Plc, which sought to contest the jurisdiction of the Federal Competition and Consumer Protection Commission (FCCPC). This ruling represents a major victory for regulatory oversight and consumer protection mechanisms in the financial industry.
Legal Challenge and Judicial Response
In the suit, identified as FHC/ABJ/CS/1972/2025, UBA Plc had raised questions regarding the FCCPC's authority to exercise jurisdiction over commercial banks licensed by the Central Bank of Nigeria (CBN). The bank specifically cited Section 251 (1) (d) of the 1999 Constitution of the Federal Republic of Nigeria (as amended 2023) and Section 65(1)(a) of the Banks and Other Financial Institutions Act (BOFIA) 2020 in its challenge. According to a statement issued by FCCPC's Director of Corporate Affairs, Ondaje Ijagwu, Justice Omotosho meticulously considered these legal provisions and ultimately upheld the commission's statutory authority.
The court firmly established that the FCCPC possesses the legitimate power to investigate consumer complaints involving banks and other financial institutions. Justice Omotosho emphasized that no other agency in Nigeria is specifically tasked with this responsibility, clarifying that neither the Banks and Other Financial Institutions Act nor the Central Bank of Nigeria Act grants such investigative powers to the CBN. Consequently, the court imposed a N2 million fine on UBA Plc for bringing what it deemed "a frivolous and unmeritorious case" against the FCCPC.
Statutory Framework and Legal Precedent
In his comprehensive judgment, Justice Omotosho referenced several key sections of the Federal Competition and Consumer Protection Act, 2018 (FCCPA), including Sections 1, 2, 17(e), and 104. These provisions relate to the objectives, scope, investigative powers, and application of the commission's mandate in matters concerning competition and consumer protection. Particularly significant was the citation of Section 104, which states that "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."
This legal interpretation reinforces the FCCPC's position as the primary agency responsible for addressing consumer protection issues involving customers and banks. The judgment establishes a clear precedent that strengthens the commission's ability to fulfill its mandate without jurisdictional challenges from regulated entities.
Reactions and Implications
In response to the court's decision, FCCPC Executive Vice Chairman/CEO Tunji Bello hailed the judgment as "a significant milestone in our advocacy for bank customers who have for long endured unfair treatment." Bello emphasized that the ruling provides crucial judicial guidance on the complementary relationship between sector regulation and the consumer protection framework established under the FCCPA.
According to Bello, this decision reinforces confidence that consumers across all economic sectors, including financial services, are entitled to accessible channels for complaint resolution and lawful redress. He noted that the judgment holds particular significance for businesses as well, as it clarifies that regulatory accountability and consumer confidence function as mutually reinforcing pillars of a healthy market environment.
Bello further stated that the commission will continue to engage with financial institutions and other service providers professionally, fairly, and in accordance with due process. The FCCPC remains committed to encouraging internal complaint resolution mechanisms that address consumer concerns promptly while maintaining its oversight role to ensure compliance with consumer protection standards.
