July 15, (THEWILL) – The Competition and Consumer Protection Tribunal (CCPT) sitting in Abuja, has imposed a N120 million fine on Stanbic IBTC Bank to be paid into the tribunal’s account over a failed transaction.
The three-member panel, in a lead judgement delivered on Thursday, by Honourable Sola Salako Ajulo, convicted the bank for contravening the provisions of Section 130(1)(a) of the FCCP Act, 2018 and Section 5(2)(8) and (9) of the Central Bank of Nigeria (CBN) Regulation on Instant Interbank Electronic Transfers for failing to comply with 10 minutes mandatory timeline for transfers as guided by sections 154 and 155 of the FCCP Act.
It also ordered the payment of N5 million damages and N1 million cost to the claimant.
While two members of the tribunal, including Honourable Ajulo and Honourable Ibrahim Yakubu, concurred with the majority judgment, the presiding judge, Honourable Chuma Mbonu, dissented.
The judgement followed a petition by a customer, Clement Osuya, challenging the failure of the bank, on two occasions, to transfer the sum of N500,000 from his IBTC account to his account with Access Bank, which he claimed was for the payment of school fees for his children.
On September 8, 2022, in Abuja, Osuya told the tribunal that he filled out a form under the NIPS Instant Payment option for a transfer of the sum of N500,000 to his Access Bank account, which was not delivered after he was debited. He added that the same action also occurred after he lodged a complaint.
The bank, through its counsel, Marcel Osigbemhe (Esq), had blamed the failure of the transactions on the third-party NIPS service.
However, rejecting the defence, the tribunal held that “inasmuch as the defendant (IBTC) failed to comply with the two instructions of the claimant to transfer the sums of N500,000 to another account in Access Bank, as no transfer took place at both times, defines that the defendant breached the banker-customer contractual relationship between the two parties. This issue is resolved in favour of the claimant.”
In his dissenting judgement, Honourable Mbonu held that the preliminary objection of the IBTC was meritorious as the tribunal lacked the jurisdiction to entertain the claim as it was not a regular court as described under Section 146 of the FCCP Act, and that its powers rest on the appellate level of the Commission’s complaints’ investigation.
Reacting to the judgement, Stanbic IBTC said: “We wish to express our strong disagreement with the judgment and believe it contradicts the explicit provisions outlined in the Federal Competition and Consumer Protection Act 2018 (FCCPA) and Section 65(1)a of the Banks and Other Financial Institutions Act 2020.
“The decision reached by the Tribunal is completely unjust, inequitable and legally incorrect. We firmly believe it disregards the well-established legal framework governing competition and consumer protection in Nigeria.
“The dissenting judgment of the Chairman of the Tribunal echoes our concerns, and we are confident that it highlights the discrepancies embedded in the majority decision. We trust that on appeal, the judgment will be reviewed and ultimately set aside.
“Stanbic IBTC Bank maintains a steadfast commitment to operating in accordance with all applicable laws and regulations. We always strive to provide our esteemed customers with the highest level of service, adhering to industry best practices. The judgment delivered by the Tribunal undermines the regulatory environment and could have far-reaching implications for the banking industry.
“In light of this development, we have immediately instructed our External Counsel to file an appeal challenging the judgment. We firmly believe in the strength of our legal position and are confident that the higher courts will rectify this unfortunate outcome.
“We assure all our valued customers, stakeholders, and the public that Stanbic IBTC Bank remains committed to upholding the highest standards of integrity, transparency, and professionalism. We will continue to prioritise the best interests of our customers while vigorously defending our rights within the legal system.
“As the legal process unfolds, we will regularly update our stakeholders. We appreciate the continued support and trust that you have placed in Stanbic IBTC Bank, and we remain confident that justice will prevail.”
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