The Competition and Consumer Protection Tribunal (CCPT) sitting in Abuja delivered its Verdict on Thursday, Imposing a fine of ₦120 million against Stanbic-IBTC Bank for its failure to complete a Customer’s Transfer Request.
In a Split decision of two to one, the Tribunal found the Bank Guilty of 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 Regulation on Instant Interbank Electronic Transfers.
The Tribunal Justified the Imposition of the Fine based on the Bank’s Non-Compliance with the Mandatory timeline of 10 minutes or at most one hour for Reversing failed Transfers, as stipulated by Sections 154 and 155 of the FCCP Act, 2018.
Hon. Sola Salako-Ajulo, delivering the lead Judgment, also ordered the Bank to pay the Claimant, Clement Osuya, the sum of ₦1 million as the Cost of filing the action.
“The Tribunal holds that the Defendant (IBTC) Breached the Banker-Customer Contractual Relationship between the two Parties by failing to Comply with the Claimant’s Instructions to Transfer the sums of ₦500,000 to another account in Access Bank, as no Transfer took place at both times,” Ajulo stated.
However, the Tribunal declined to Award Osuya the sum of N5 million as Compensation, Citing his failure to prove any injury suffered as a result of the Bank’s Service Delivery Failure.
Hon. Ibrahim Yakubu concurred with Salako-Ajulo’s Verdict, while the Presiding Judge, Hon. Chuma Mbonu, dissented and gave a Minority Judgment.
Mbonu, in his Minority Judgment, contended that the Tribunal lacked the Jurisdiction to Entertain the Petition.
He argued that the Tribunal has Appellate Jurisdiction but not Original Jurisdiction, and therefore Struck out the Suit for lacking Merit.
The Petitioner, Osuya, had Filed a Petition against the Bank, Challenging its Failure on two Occasions to Transfer the sum of ₦500,000 from his IBTC Account to his Access Bank Account.
He claimed that the Money was Intended for his Children’s School Fees.
Osuya stated that on September 8, 2022, he submitted a Form for an Instant Payment Transfer of ₦500,000 to his Access Bank account.
He alleged that while the Money was Debited from his IBTC Account on both Occasions, it never arrived in his Access Bank Account as it was not Credited.
According to Osuya, the Reversal of the First Transaction occurred after 24 hours, while the Reversal of the second Transaction took 72 hours.
He further claimed that the Bank’s Negligence caused him Trauma, and Embarrassment, and forced him to seek a Loan.
The Bank, represented by its Counsel, Marcel Osigbemhe, attributed the Transaction Failure to the Third-Party NIPS Service.
Osigbemhe expressed his Dissatisfaction with the Judgment, questioning how his Client could be Convicted when no Charges were Formally brought against them.
On the other hand, Counsel to the Claimant, Ms. Deborah Solomon, expressed Gratitude to the Tribunal for its Well-Considered Judgment.
The Fine is to be paid into the Tribunal’s Remit Account, as per the Report.
