Current Volume 9
A Comparative Legal Review of Consumer Protection Rights in Cases of Unexplained Disappearance of Bank Funds: Lessons from Nigeria and The United Kingdom
Abstract
Cases of unexplained disappearance of customer funds—often arising from unauthorized withdrawals, electronic fraud, or operational negligence—have become a growing concern in the global banking industry, particularly in developing economies like Nigeria. Despite regulatory measures by the Central Bank of Nigeria (CBN), recurring losses and limited redress mechanisms continue to undermine consumer confidence in financial institutions. Existing scholarship on this issue remains fragmented and rarely compares the legal protection frameworks of developing and developed jurisdictions. This study fills that gap through a doctrinal and comparative legal analysis of consumer protection regimes in Nigeria and the United Kingdom (UK). It examines statutory instruments, regulatory frameworks, and judicial precedents, including Nigeria’s CBN Consumer Protection Regulations (2019), BOFIA (2020), and FCCPC Act (2019) alongside the UK’s Financial Services and Markets Act (2000), Consumer Rights Act (2015), and Payment Services Regulations (2017). Findings reveal that the UK framework, supported by the Financial Conduct Authority (FCA) and Financial Ombudsman Service (FOS), offers statutory, autonomous, and enforceable consumer protection, ensuring effective redress and accountability. In contrast, Nigeria’s system remains administratively driven, with non-binding refund obligations and overlapping institutional mandates. The study concludes that Nigeria can significantly enhance consumer confidence and financial integrity by codifying refund rights in law, establishing an independent ombudsman, and adopting FCA-style Consumer Duty principles. Such reforms would align Nigeria’s consumer protection architecture with international best practices and ensure a fair, transparent, and enforceable redress regime.
Keywords
Consumer Protection, Banking Law, Comparative Legal Study, Nigeria, United Kingdom, Financial Regulation, Unexplained Fund Loss.
Citations
IRE Journals:
Barr. Owoka Olugbenga Ransome "A Comparative Legal Review of Consumer Protection Rights in Cases of Unexplained Disappearance of Bank Funds: Lessons from Nigeria and The United Kingdom" Iconic Research And Engineering Journals Volume 9 Issue 1 2025 Page 2220-2232
IEEE:
Barr. Owoka Olugbenga Ransome
"A Comparative Legal Review of Consumer Protection Rights in Cases of Unexplained Disappearance of Bank Funds: Lessons from Nigeria and The United Kingdom" Iconic Research And Engineering Journals, 9(1)
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