The Federal Competition and Consumer Protection Commission (FCCPC) has voiced serious concerns regarding the persistent disruptions in online banking services across Nigeria, labeling these interruptions as violations of customers’ rights.
In an official statement released on Tuesday, the Commission urged affected bank customers to seek redress for the challenges they are facing.
According to the FCCPC, these service disruptions have significantly hindered customers from accessing their funds, making payments, and executing essential transactions. The impact has been felt by millions of individuals and businesses, raising alarms about the broader implications for the Nigerian economy.
The Commission highlighted that under the Federal Competition and Consumer Protection Act (FCCPA) of 2018, bank customers are entitled to specific rights that ensure fair and accountable service delivery.
A critical provision of the FCCPA is the right to quality service, which mandates that all service providers, including banks, must maintain acceptable levels of functionality and reliability.
The Commission noted: “When banks fail to provide access to essential financial services, they are arguably failing to meet this standard. This failure can result in significant financial hardship for customers, loss of trust in the banking system, and detrimental effects on the overall economy.”
Furthermore, the FCCPA guarantees consumers the right to reasonable access to goods and services, a principle that is severely compromised when technical failures prevent customers from accessing their funds.
The Commission emphasized that, in an increasingly cashless economy like Nigeria’s, online banking has evolved from being a mere convenience to a crucial necessity.
Interruptions that hinder consumers from conducting transactions or accessing their funds are more than just inconveniences; they may also constitute violations of consumer rights.
The consumer protection authority also pointed out that service providers are required by the FCCPA to operate with transparency and to communicate effectively with their customers.
During times of service disruption, it is essential for banks to keep their customers fully informed about the causes, extent, and expected duration of any issues.
However, the Commission lamented that many consumers are left uninformed, a situation that amplifies frustration and leaves customers feeling unsupported.
Importantly, the FCCPA allows consumers to seek redress when services fail to meet necessary standards.
The Commission stated, “Bank customers can pursue remedies if they are adversely affected by substandard services. The FCCPC is currently reviewing the situation to assess whether consumers’ rights to redress are being upheld and whether further actions are needed to enforce accountability.”
In its efforts to address these ongoing disruptions, the FCCPC is actively collaborating with relevant regulatory authorities, financial institutions, and other stakeholders.
The Commission reassured affected bank customers that their concerns are being taken seriously.
It urged banks and financial institutions to take immediate action to restore services, prioritize customer support, and improve communication to manage customer expectations in a transparent and responsible manner.
Since the beginning of October, many customers of banks such as Zenith Bank and GTBank have faced significant challenges in executing transactions due to instability arising from a core banking application switch implemented by these institutions.
While the banks initiated this switch to enhance their services, the transition has left many customers frustrated and dissatisfied with the current state of online banking in Nigeria.
The FCCPC’s intervention highlights the critical need for banks to ensure reliability and transparency in their operations, especially as digital banking becomes increasingly integral to the daily lives of Nigerians.
As the situation unfolds, the Commission’s commitment to safeguarding consumer rights remain paramount.
