The Federal Competition and Consumer Protection Commission (FCCPC) has reiterated the importance of consumer data protection, warning that financial institutions will be held accountable for any breach of customer information.
This comes as part of the Commission’s broader effort to enforce compliance and protect consumer rights in Nigeria’s financial sector.
In a statement posted on its official X handle on Friday, the FCCPC said the roundtable discussion was geared towards equipping banking stakeholders with essential compliance knowledge and also to strengthen self-regulation, enhance consumer protection, and address industry-specific challenges.
The Commission underscored the importance of consumer data security, warning financial institutions about the consequences of mishandling customer information. It stated,
“There are now data protection laws in Nigeria and financial institutions will be held liable when consumers’ data is compromised.”
FCCPC also flagged concerns about improper disposal of Know-Your-Customer (KYC) forms, highlighting that careless handling of these documents puts consumer privacy at risk.
“There must be proper disposal of Know-Your-Customer (KYC) forms in order not to end up in the wrong hands.”
“Some of the KYC forms are seen being used by roadside sellers to package food items to people; this is wrong,” the Commission noted
Challenges with failed transaction reversals
- FCCPC also tackled the issue of banks failing to meet the Central Bank of Nigeria (CBN) guidelines on reversing failed transactions.
- According to the Commission, banks are unable to comply due to discrepancies in resolution timeframes imposed by different payment gateways.
- A bank payment gateway acts as a middleman in electronic transactions, but FCCPC noted that the varied policies across these gateways create inconsistencies, delaying transaction reversals and frustrating customers.
Financial market transparency
Reaffirming its stance, FCCPC pledged to ensure compliance across the financial sector to protect consumers. The Commission emphasized that it will continue engaging financial institutions to enforce regulations that uphold transparency and best practices.
This engagement forms part of FCCPC’s broader strategy to ensure Nigerian banks operate within regulatory frameworks while prioritizing consumer rights and market fairness.
What you should know
The Federal Competition and Consumer Protection Commission (FCCPC) has recently intensified its focus on consumer data protection within Nigeria’s financial sector.
This heightened attention is largely in response to a series of significant data breaches and service disruptions that have adversely affected consumers and raised concerns about the security protocols of financial institutions.