FCCPC Warns Nigerian Banks: Stop Service Disruptions, Protect Consumers’ Rights
By Rita UZuh
October 29, 2024
The Nigerian government has issued a stern warning to banks operating in the country, cautioning against disruptions in service delivery and poor quality of banking services to customers. This comes amid rising complaints from Nigerians over service issues in the banking sector, including frequent service disruptions that have left many citizens unable to access funds or complete essential transactions.
The Federal Competition and Consumer Protection Commission (FCCPC) voiced its deep concerns, emphasizing that these disruptions could potentially violate consumers’ rights. In a statement signed by FCCPC’s Executive Vice Chairman and Chief Executive Officer, Tunji Bello, the commission reiterated its commitment to addressing these issues.
“FCCPC is deeply concerned about the continuing disruptions in online banking services across Nigeria. These disruptions have hindered customers from accessing their funds, making payments, and carrying out essential transactions, impacting millions of Nigerians and posing serious risks to individuals and businesses alike,” the statement read.
The FCCPC reminded banks that customers have a legal right to effective service delivery under the Federal Competition and Consumer Protection Act (FCCPA) of 2018. This act guarantees consumers’ rights to receive quality and reliable services from providers, including banks. The FCCPC asserted that failure to maintain reliable access to essential financial services violates the standard of quality service required by the FCCPA and may lead to financial hardship, a loss of confidence in the banking sector, and potential harm to Nigeria’s broader economy.
The commission’s statement underscored the critical nature of online banking, particularly in an economy that is increasingly adopting cashless payment methods. “In today’s cashless economy, online banking is no longer a luxury but a necessity. Interruptions that hinder consumers from engaging in transactions or accessing funds are not only inconvenient but may constitute a violation of consumer rights,” it said.
The FCCPA also ensures that bank customers have access to redress mechanisms if services provided fall short of expected standards. The commission encouraged customers experiencing subpar services to seek redress and assured them that the FCCPC is reviewing the situation to ensure consumer rights are upheld.
“The FCCPC is actively working with relevant regulatory authorities, financial institutions, and stakeholders to address these disruptions and safeguard customer protection. The commission will pursue all necessary actions to ensure the enforcement of the FCCPA,” it concluded.
Banks identified in the complaints include major financial institutions such as Zenith Bank, Guaranty Trust Bank, First Bank, United Bank for Africa, and Access Bank. The FCCPC’s warning serves as a reminder of the government’s focus on protecting consumer rights and maintaining accountability within the Nigerian financial system.
