Tribunal fines Stanbic IBTC Bank N120m for flouting Consumer Protection Act

*Nigeria’s Competition and Consumer Protection Tribunal sitting Thursday, in Abuja, held the Stanbic IBTC Bank failed to complete an NIBSS Instant Payment transfer request, and withheld a consumer’s funds beyond the 10-minute reversal regulation for failed NIBSS Instant Payment electronic funds transfer in the West African country

Isola Moses | ConsumerConnect

The Competition and Consumer Protection Tribunal (CCPT) sitting Thursday, July 13, 2023, in Abuja, FCT, fined Stanbic IBTC Bank N120 million for contravening Section 130 (1) (a) of the Federal Competition and Consumer Protection Act (FCCPA) 2018.

The Tribunal, in a ruling, said the Deposit Money Bank (DMB) in Nigeria had failed to complete an NIBSS Instant Payment transfer request, and withheld the consumer’s funds beyond the 10-minute reversal regulation for failed NIBSS Instant Payment electronic funds transfer in the West African country.

Damilola Osungade,  Communications Officer of CCPT, in a statement issued Thursday, in Abuja, noted a 2-hour majority decision delivered Mrs. Sola Salako-Ajulo, Honourable Member representing South-West Nigeria on the Tribunal, in a case between Clement Osuya and Stanbic IBTC, held Stanbic IBTC liable for a breach of contract and duty of care owed the Claimant.

The Tribunal also held that the commercial bank failed to complete an instruction to transfer the sum of N500,000 into another account in Access Bank, and it failed to reverse the failed transaction within 10  minutes, as stipulated by the 2018 CBN Regulation on NIBSS Interbank Electronic Funds Transfer.

According to the CCPT, Stanbic IBTC Bank rather withheld the consumer’s funds for up to 24 and 72 hours consecutively in two failed instant electronic transfer transactions.

Stanbic IBTC’s defence

In its defence at the Tribunal in Abuja, Stanbic IBTC claimed the transaction failed on the NIBSS Instant Payments platform and not on its own platform and as such, the bank could not be held liable for negligence or a breach of its duty of care to the Claimant.

However, the Tribunal in its decision averred that an “instant”  platform should not take 24 or 72 hours to reverse a failed transaction and the Defendant did not provide the court any documentary evidence to prove that the transfer failed on the NIBSS Instant Payment Platform and not on Stanbic IBTC platform.

CCPT’s decision

“By violating the CBN Regulation, the Consumer Tribunal held the bank in contravention of Section 130 (1) (a) & (b) of the FCCPA 2018 which granted the consumer the right to expect timely and completed services from an undertaking who had agreed to provide any service to him,” said the Tribunal.

The three-man panel comprising Mr. Chu’ma Mbonu, Hon. Member (South-East) presiding, Mrs. Sola Salako-Ajulo Hon Member (South-West) and Mr. Ibrahim El Yakubu, Hon. Member (North-West), delivered a 2-1 ruling affirming the jurisdiction of the Tribunal to hear the suit before proceeding to enter judgement in favour of the Claimant.

In a preliminary objection, the Defendant had challenged the original jurisdiction of the Tribunal to hear the case, arguing that the matter was a bank/customer dispute which was in the exclusive jurisdiction of the Federal or State High Court.

The Tribunal, however, held that it had concurrent jurisdiction to hear the substantive suit as could be clearly deduced from S.39(1) (2) and S. 45 which conferred on the Hon. Tribunal the status of a High Court dedicated to adjudicate Competition and Consumer Protection conducts prohibited by the FCCPA.

The Tribunal stated: “In a minority opinion, the Presiding Member Mr. Chu’ma Mbonu supported the Defendant’s preliminary objection, claiming that the CCPT had only appellate jurisdiction and cannot hear an originating application in the form of the suit before it.

“The lead judgment resolved four issues in favour of the Claimant and one issue in favour of the Defendant.”

The statement further disclosed the Tribunal awarded N5 million in general damages to the Claimant as well as a million Naira, being cost for litigation against the Defendant at the CCPT.