The move by the Federal Competition and Consumer Protection Commission (FCCPC) to probe Guaranty Trust Bank (GTB), Air Peace and MTN has elicited positive reactions among customers. BENJAMIN SAMSON in this report examines the significance of the inquiry.
The Federal Competition and Consumer Protection Commission (FCCPC) last week announced a comprehensive inquiry into mounting consumer grievances against major players in the banking, telecommunications, and aviation sectors.
The investigations, slated for 3rd, 4th, and 5th December, respectively, aim to tackle concerns over substandard service delivery, exploitative practices, and potential violations of consumer rights.
In a statement released on the agency’s X handle (former Twitter), Ondaje Ijagwu, FCCPC’s Director of Corporate Affairs, confirmed the dates for the inquiry, set to run from 3rd to 5th December.
He said, “In the banking sector, the FCCPC will engage Guaranty Trust Bank (GTB) regarding complaints of network failures that prevent customers from accessing their funds or utilising banking applications.
“In the telecommunications sector, MTN Nigeria will address issues relating to persistent complaints of undelivered data services, unexplained data depletion, and inadequate customer care.
“Likewise, Air Peace Limited faces scrutiny over allegations of exploitative ticket pricing, including significant fare increases for advance bookings on specific domestic routes.”
“These inquiries are being conducted under the Federal Competition and Consumer Protection Act (FCCPA) 2018, particularly Sections 17, 18, 32, 33, 80, 110, 111, 112, and 113. The Act empowers the FCCPC to investigate and rectify practices that infringe upon consumer rights, distort market operations, or foster unfair competition.
“The FCCPC’s engagement with these companies provides a platform to address consumer concerns, clarify business practices, and enforce compliance with regulatory standards. The companies will be required to appear before the Commission on designated days to provide information and responses, enabling the Commission to resolve pending issues expediently.
“This initiative underscores the Commission’s dedication to safeguarding consumer rights, promoting a fair marketplace, and ensuring accountability across all sectors.
“We encourage consumers to continue reporting instances of poor service delivery or exploitative practices through the FCCPC’s official channels.”
Lamentations
Voices of disappointed bank customers who have experienced the adverse effects of poor banking services firsthand speak volumes to how poor services have been rendered by banks in recent times.
Sabitu Megbon, an Abuja-based trader, expressed his frustration, saying, “It’s been a nightmare running my business. Almost every other day, I struggle to access funds to restock, and with no notice of these service downtimes, I’m constantly left hanging. This has cost me loyal customers who think I’m unreliable.”
Chinedu Okeke, a small business owner, shared his ordeal thus, “I rely on online transactions to pay my suppliers, but the bank’s app crashes whenever I need it the most. I’ve had suppliers cut ties with me because payments don’t go through on time. It’s unfair that banks don’t take responsibility for these repeated failures.”
Telecoms
Also, Eyitayo Samuel, an undergraduate at the Lagos State University (LASU), accused network providers of giving false information, adding that the data package of N500, which should last for seven days, no longer lasts more than a day.
“I use MTN. If you buy 3gb worth of data for N500, it only lasts for one day. Normally the network operators will say the 3gb is supposed to last for seven days but now I use the 3gb in one day, sometimes it finishes before 24 hours. Sometimes I buy twice a day,” he said.
Also, Emeka Samson stressed the need for network providers to improve their services, saying that sometimes users experience glitches.
“When it comes to networks, we all know network connection in Nigeria is very bad; it is very, very bad. If I am to rate the network in Nigeria I will give it 60% at most. The kind of experience I face is that sometimes the network does not connect,” he said.
Activists’ take
Speaking with this reporter, a consumer rights activist and convener of Consumer Assembly, Barrister Hauwa Ogbaje, said the probe could go along with addressing persistent consumer rights violations.
He said, “The Federal Competition & Consumer Protection Commission’s decision to probe Guaranty Trust Bank, MTN Nigeria, and Air Peace is a significant step toward addressing persistent consumer rights violations. These investigations reflect the urgent need to enforce accountability in service delivery across key sectors.
“Exploitative practices by big companies in Nigeria should no longer be condoned. Widespread allegations of unfair treatment, negligence, and inadequate consumer protection mechanisms by companies are getting out of hand.
“However, for meaningful reform, the Commission must conduct thorough and transparent investigations, implement robust consumer protection measures, and impose punishments to deter further infractions.”
Regulatory failures
Another activist, Mairiga Dikko, blamed regulatory agencies in the aviation, banking and telecom sectors for not living up to expectations.
He said, “The CBN’s failure to proactively address these issues signals regulatory laxity. Despite recording massive profits, banks continue to deliver poor services. The CBN governor, Olayemi Cardoso, must take decisive steps to restore confidence in the banking system through stronger oversight and reforms. Under former Governor Lamido Sanusi, meaningful measures were introduced to improve accountability. However, subsequent leadership under Godwin Emefiele undermined efficiency through dodgy regulatory compromises.
“The aviation sector presents another glaring example of regulatory shortcomings. Air Peace’s reported fare hikes are exploitative and unjustifiable. The National Civil Aviation Authority has failed to curb such practices, leaving passengers vulnerable to price gouging.
“The telecom industry fares no better. Unexplained data depletion and unsatisfactory customer service undermine trust in a sector crucial to Nigeria’s digital economy. Regulatory bodies must enforce stricter compliance standards to ensure consumers receive the value for their money.”
He advised affected customers to pursue redress, emphasising that the law allows consumers to seek compensation when services fall short of regulatory standards.
“In cases where customers have been financially impacted due to poor service, they are encouraged to report their grievances through the FCPC Commission’s new consumer support framework or the regulatory agencies in their sector. Customers can seek redress if they are adversely affected by substandard services.”
Experts’ views
In his view, a financial expert and lecturer in the department of public finance, Lagos Business School, Dr. Chukwudi Ezeoba, decried the poor services by big companies despite huge profits they declare yearly.
He said, “It is unfortunate that big companies in banking, aviation and telecom sectors declare profits running into hundreds of billions but fail to satisfy customers that are responsible.
“GTB is a leading Nigerian bank with a retail customer base of 32.8 million. It also operates in 10 other countries. In the first half of 2024, the bank declared a profit before tax of N1.00 trillion and a profit after tax of N905.6 billion. Now, GTB is under scrutiny for frequent Internet banking glitches that have left customers frustrated and unable to access their funds.
“MTN faces allegations of undelivered data services, unexplained data depletion, and poor customer support. Air Peace is accused of exploitative ticket pricing and abrupt price hikes on domestic flights. Airlines repeatedly delay flights for hours without corresponding sanctions to the passengers’ favour.
“These issues highlight a troubling trend. Nigerians endure substandard services with limited avenues for redress.”
Similarly, an IT consultant at CIPRO network, an IT firm, Engr. Kunle Ajasin, said many Nigerians lack the financial powers to seek redress for poor services resulting in financial losses.
“Persistent software glitches disrupt transactions, tarnish reputations, and erode consumer confidence. Many customers are now turning to fintech solutions or abandoning formal banking altogether.
“A recent directive by the CBN to upgrade security infrastructure exacerbated the issue, particularly for GTB, where many customers struggled to access their funds. These reflect broader systemic challenges in Nigeria’s banking sector, where institutions prioritise profit over customer satisfaction,” he said.
He said further, “Numerous customers face illegal deductions, including excessive fees for stamp duties, account maintenance, and VAT. While high-profile cases like Femi Otedola’s offer a rare example of accountability, most Nigerians lack the resources to contest these financial injuries.
“Unfortunately, GTB’s is not an isolated case. Banks inexplicably place liens on customers’ accounts, leading to loss of income.”
However, Ajasin said the probe could signal signs of better things to come for consumers in Nigeria.
“For consumers, the FCCPC investigations could signal a turning point. By enforcing reforms and imposing meaningful penalties on violators, the commission can set a precedent for corporate responsibility.
“However, sustained progress will require proactive collaboration between regulators, businesses, and consumers. Companies must prioritise ethical practices and customer satisfaction as strategic imperatives for long-term growth.
“Simultaneously, civil society and consumer advocacy groups should actively hold corporations accountable, encouraging transparency and fair practices. The FCCPC’s efforts can restore public confidence in Nigeria’s corporate and regulatory systems. This opportunity to champion consumer rights must not be squandered.
“The stakes are high for the average Nigerian, but so is the potential for transformative change. The Commission must seize this moment to deliver justice and set a higher standard for corporate accountability across all sectors.
NCC’s reaction
Meanwhile, the Nigerian Communications Commission (NCC) has absolved Mobile Network Operators (MNOs) of blame over allegations of data depletion and wrong billings, saying “there were no big issues around the allegations.”
A management staff of the Commission who pleaded anonymity because he was not permitted to speak on the issue said an audit had been conducted around the billings and data usage mechanism, but it was discovered that subscribers were not being cheated. He, however, lamented that the current macro-economic challenges and the rising cost of business in the country were making investments in the telecommunications industry difficult.
He attributed data depletion and complaints on wrong billings by subscribers to “the impact of high-resolution devices and improved technologies on data use and the complexity of operator tariffs.”
“Globally, there are now over 5 billion internet users, with Nigeria alone accounting for 132 million connections. Nigerians spend an average of 4 hours and 20 minutes on social media daily, far above the global average, underscoring how deeply embedded digital interaction is in our lives.
“In 2024, Nigeria’s daily data usage averaged 336 gigabytes per second, marking a 39 per cent increase from the previous year – a clear indication of the data-driven lifestyle many Nigerians lead. With the advent of 4G and 5G, as well as devices with ultra-high-definition screens, data consumption has naturally increased. For example, while viewing a photo on Instagram might have required only 100 kilobytes of data five years ago, today, with advanced camera resolutions, a photo can consume between two to four megabytes when opened on Instagram.
“According to Tech Advisor, an online resource that offers tech reviews, spending an hour on Instagram can set you off an average of 600 megabytes of your data, while streaming platforms like YouTube would set you off by about 3.5 to 5.4 Gigabytes per hour.”
