LIABILITIES OF BANKERS TO THEIR CUSTOMERS AND THIRD PARTIES IN BANKER-CUSTOMER RELATIONSHIP IN NIGERIA: AN OVERVIEW

Abstract

It is undoubtedly that banks have played significant roles in the development of Nigeria’s economy through their multifarious services rendered to their customers including the general public. The key factor in the performance of these multifarious services is the consideration of the various legal relationships that exist between a bank and its customers as well as third parties is what? It is therefore imperative to appraise the nature of the legal relationships of banks and their customers as well as third parties. In the midst the legal relationship that exist between bankers and their customers, there are liabilities of bankers to their customers and third parties. The aim of this research is mainly to undertake an overview of the liabilities that exist between bankers and their customers as well as third parties in the banker-customer legal relationship. This research work also, examines the liabilities of Bankers to their Customers and third Parties in the course of their rendering banking services and proffers suggestions. The researchers adopted doctrinal legal research methodology with the use of analytical approach through primary and secondary sources such as statutes, case law, textbooks, journal articles, internet materials. The research found among other things that the relationships between bankers and their customers are largely contractual and tortious with reciprocal rights and duties inuring to both parties and third parties. The research concluded inter alia that the liabilities of bankers extend beyond mere custodianship of funds. Banks are entrusted with the duty of care, confidentiality, and competence in managing customer accounts and transactions. These duties form the foundation of trust and confidence between banks and their customers. Also, as the banking industry in Nigeria becomes increasingly digital, the responsibilities of banks to safeguard customers’ funds and information become more complex. The research therefore, recommended the need for robust regulatory frameworks to enforce accountability and mitigate risk arising from banker-customer relationship so as to minimize the liabilities.