The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over the disruptions of online banking services affecting customers of some Nigerian banks.
The competition watchdog, which addressed banks regarding their failure to maintain acceptable levels of functionality and reliability in their online services, says the trend has resulted in continuous disruptions for customers, hindering customers from accessing funds and conducting transactions smoothly.
In recent times, banks in Nigeria, starting with Zenith Bank in September, and Guaranty Trust (GT) Bank in October have experienced disruptions in their online banking services. This has made it challenging for customers to carry out transactions, with other banks such as UBA, and Access bank also alerting customers of potential future disruptions.
He stated further that the FCCPA grants consumers the fundamental right to reasonable access to goods and services, a principle that is undermined when technical failures hinder customers’ access to their own funds. In a time when Nigeria’s economy is increasingly reliant on cashless transactions, online banking has transitioned from a mere convenience to a necessity. Disruptions that prevent consumers from conducting transactions or accessing essential funds are not only inconvenient but may also constitute a violation of this right.
FCCPC: Online banking has moved from mere convenience to a necessity.
Mr. Tunji Bello, Executive Vice Chairman/Chief Executive Officer of FCCPC, expressed deep concern about the impact of these disruptions on customers across Nigeria.
These disruptions “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.”
The watchdog chief notes that under the Federal Competition and Consumer Protection Act (FCCPA) 2018, bank customers have specific rights to ensure fair and accountable service delivery. One key provision is the right to quality service, which requires all service providers, including banks, to 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,” Bello said.
He stated further that the FCCPA grants consumers the fundamental right to reasonable access to goods and services, a principle that is undermined when technical failures hinder customers’ access to their own funds. In a time when Nigeria’s economy is increasingly reliant on cashless transactions, online banking has transitioned from a mere convenience to a necessity. Disruptions that prevent consumers from conducting transactions or accessing essential funds are not only inconvenient but may also constitute a violation of this right.
Service providers, according to Bello, are mandated by the FCCPA to be transparent and communicate openly and accurately with customers. During service disruptions, it is imperative for banks to keep their customers fully informed about the causes, extent, and expected duration of any service issues. Unfortunately, many consumers are left uninformed, leading to increased frustration and a sense of abandonment.
FCCPA also empowers consumers to seek redress for services that fail to meet required standards. Therefore, bank customers have the right to seek compensation if they are negatively impacted by subpar services. However, FCCPC says it is currently evaluating the situation to determine if consumers’ rights to redress are being upheld and if more action is needed to enforce accountability.
Active effort and work with relevant regulatory bodies, financial institutions, and stakeholders are on to address these disruptions and safeguard customers, taking all necessary measures to uphold the protections of the FCCPA, says Commission.
The Commission reiterated its commitment to addressing the concerns of bank customers affected by recent disruptions, stating that “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”.
Furthermore, the competition watchdog said that consumers have been provided with the option to report complaints to the FCCPC through the following channels: Website and Email: contact@fccpc.gov.ng.
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