The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over the continuing disruptions in online banking services across Nigeria, describing it as a violation of the customers’ rights.
The Commission stated this in a statement released on Tuesday, in which it urges bank customers to seek redress.
According to the FCCPC, these disruptions, which have hindered customers from accessing their funds, making payments, and carrying out essential transactions, have negatively impacted millions and have serious implications for individuals and businesses alike.
What the law says about the rights of customers
The Commission noted that under the Federal Competition and Consumer Protection Act (FCCPA) 2018, bank customers have specific rights to guarantee fair and accountable service delivery.
“A key provision is the right to quality service, which mandates that all service providers, including banks, maintain acceptable levels of functionality and reliability.
“When banks cannot maintain access to essential financial services, they are arguably failing to meet this standard, potentially leading to significant financial hardship, loss of trust in the banking system, and damage to the overall economy,” it said.
- The FCCPA further grants consumers the right to reasonable access to goods and services—a principle that is compromised when technical failures impede customers’ access to their own funds.
- The Commission noted that at a time when Nigeria’s economy is increasingly cashless, online banking is no longer a mere convenience but a necessity.
- Interruptions that impede consumers from engaging in transactions or accessing essential funds are not only an inconvenience, but they may also be a violation of this right, the Commission added.
Call for transparency
The consumer protection authority noted that service providers are required by the FCCPA to be transparent and communicate with customers in an open and accurate manner.
- During service disruption, it is essential that banks keep their customers fully informed about the causes, scope, and anticipated duration of any service issues, it said.
- The Commission, however, regretted that many consumers are left in the dark, a situation that increases frustration and leaves customers feeling unsupported.
- It added the FCCPA allows consumers to seek redress for services that do not meet the necessary standards.
“As such, bank customers can seek redress, if they are adversely affected by substandard services. The FCCPC is currently reviewing the situation to determine if consumers’ rights to redress are being upheld and if more action is needed to enforce accountability,” it said.
The FCCPC added that it is actively working with relevant regulatory authorities, financial institutions, and stakeholders to address these disruptions and ensure the protection of customers.
“The Commission assures affected bank customers that their concerns are being taken seriously. We urge banks and financial institutions to take swift action to restore services, prioritise customer support, and enhance communication to manage customer expectations transparently and responsibly,” it said.
Backstory
- Since the beginning of October, many bank customers in Nigeria, those of Zenith Bank and GTBank have been having difficulties in carrying out transactions from their accounts.
- This was a result of the core banking application switch carried out by the banks, which caused instability in their operations.
- While the banks embarked on the switch to enhance their services, the impact has left a bitter taste in the mouths of many of their customers.
