LEGAL AND INSTITUTIONAL FRAMEWORKS FOR CONSUMER PROTECTION IN THE NIGERIAN BANKING SECTOR: AN APPRAISAL

Abstract

This article is an appraisal of the legal and institutional framework for consumer protection in the Nigerian banking sector. The banking sector in Nigeria has evolved over the years in terms of service delivery. The speed at which banking services are delivered can be directly linked to the technological development and innovations introduced to banking by the internet. It has become easier to deal with banking transactions outside the precincts of a bank. These innovations introduced a series of legal challenges with regards to the actual relationship between the banks and their customers, thus necessitating the need to appraise the existing body of laws in the area and functionality or effectiveness of the available regulatory institutions. The study adopted a doctrinal research method in conducting this research. The research found among other findings that there are sufficient body of laws to regulate banking transactions as it affects customer banker relationship, most of those laws have become nearly obsolete and unable to accommodate the ever changing landscape of banking in Nigeria. The research therefore, recommended for the review and possible amendment of the existing body of laws. Such suggested amendments should include: a provisions for class actions and an establishment of a special court for dealing specifically with breaches of consumer rights and all other banker-consumer issues. The work concluded that an effective legal and institutional mechanisms in this area will ensure speedy disposition of cases arising from banker customer relationship which are often time sensitive in nature.