Home / Current Issue / Paper 1718251
A Comparative Legal Review of Consumer Protection Rights in Cases of Unexplained Disappearance of Bank Funds: Lessons from Nigeria and The United Kingdom
Subject area: Science,Engineering and Technology · Area of research: Consumer Protection Rights
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.
References
[1] Central Bank of Nigeria (CBN). (2019). Consumer protection regulations 2019. Abuja: CBN.
[2] Central Bank of Nigeria (CBN). (2022). Consumer protection department annual report 2022. Abuja: CBN.
[3] Diamond Bank Ltd v. Partnership Investment Co. Ltd, (2009) 18 NWLR (Pt. 1172) 67.Financial Conduct Authority (FCA). (2022). FCA handbook: Principles for businesses. London: FCA.
[4] Financial Conduct Authority (FCA). (2022). FCA consumer duty policy statement PS22/9. London: FCA.
[5] Financial Ombudsman Service (FOS). (2023). Annual review 2023: Fairness in financial services. London: FOS.
[6] Hutchinson, T., & Duncan, N. (2012). Defining and describing what we do: Doctrinal legal research. Deakin Law Review, 17(1), 83–119.
[7] Malami, S., & Yusoff, Z. M. (2017). Legal regime for the protection of banking consumers in Nigeria: An overview. UUM Journal of Legal Studies, 8(1), 45–67.
[8] Nwosu-Iheme, U. (2021). Efficacy of the Nigerian anti-money laundering legal and institutional frameworks: A comparative study. Durham University.
[9] Omarova, S. T. (2021). Technology and the future of finance. Journal of Financial Regulation, 7(2), 199–212.
[10] Omede, P. I. (2020). A tale of two markets: How lower-end borrowers are punished for bank regulatory failures in Nigeria. Journal of Consumer Policy, 43(3), 635–657.
[11] Organization for Economic Co-operation and Development (OECD). (2019). G20 high-level principles on financial consumer protection. Paris: OECD.
[12] Siems, M. (2018). Comparative law. Cambridge University Press.
[13] UBA Plc v. Oranusi, (2014) LPELR–22094(CA).
[14] Uzokwe, H. C. (2017). Consumer protection in the banking sector: The need for reform to protect bank consumers in Nigeria [Doctoral dissertation, Brunel University London].
[15] World Bank. (2022). Good practices for financial consumer protection (4th ed.). Washington, DC: World Bank.
How to cite this paper
@article{1718251,
author = {Barr. Owoka Olugbenga Ransome},
title = {A Comparative Legal Review of Consumer Protection Rights in Cases of Unexplained Disappearance of Bank Funds: Lessons from Nigeria and The United Kingdom},
journal = {Iconic Research And Engineering Journals},
year = {2025},
volume = {9},
number = {1},
pages = {2220-2232},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1718251.pdf},
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.},
month = {July},
doi = {https://doi.org/10.64388/IREV9I1-1718251}
}