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Tag: Federal Competition and Consumer Protection Commission (FCCPC)

  • Fed Govt moves against MTN, others for allegedly hoarding information

    Fed Govt moves against MTN, others for allegedly hoarding information

    The Federal Government has initiated criminal proceedings against mobil telecommunication giant, MTN Nigeria Communications Plc and two others over their alleged hoarding of information requested by Federal Competition and Consumer Protection Commission (FCCPC).

    Listed as co-defendant with MTN, in a charge, now pending before the Federal High Court in Abuja, are Karl Toriola, (MTN’s  Managing Director and Chief Executive Officer), Tobechukwu Okigbo (Chief Corporate Services Officer, MTN) and Ikenna Ikeme (General Manager, Regulatory Affairs, MTN).

    MTN and its three senior officials are accused, in the two-count charge, marked: FHC/ABJ/CR/354/2024, of among others, withholding documents requested by the FCCPC, an act which constitutes an offence under the Federal Competition and Consumer Protection Act.

    The charge, filed in the name of the Fed Govt by the FCCPC, reads:

    *That you. MTN Nigeria Communications PLC, Mr. Karl Olutokun Toriola (M), Mr. Tobechukwu Okigbo (M) and Mr. Ikenna ikeme (M) on or about the 18th day of June, 2024 at Plot 2784, Shehu Shagari Way, Maitama, Abuja, without sufficient cause, failed to produce documents and or information which you were required to produce, in compliance with a lawful summons and request to produce, dated May 17, 2024, which compliance with same was further extended by a letter dated June 5, 2024 and thereby committed an offence contrary to and punishable under Section 33 (3) of the Federal Competition and Consumer Protection Act, 2018.

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    *That you, MTN Nigeria Communications PLC, Mr. Karl Olutokun Toriola (M). Mr. Tobechukwu Okigbo (M) and Mr. ikenna ikeme (M) on or about the 18 day of June. 2024 at Plot 2784, Shehu Shagari Way, Maitama, Abuja, in furtherance, and continuation of extant refusal to produce documents and supply information required by the commission (FCCPC) under statutory notice and demand did impede and obstruct the FCCPC’s ongoing limited initial inquiry and possible prospective investigation by refusing to produce and supply documents and or information in compliance with a lawful summons and request to produce, dated May 17, 2024, which compliance with same was further extended by a letter dated June 5, 2024 and thereby committed an offence contrary to Section 111 (1) of the Federal Competition and Consumer Protection Act, 2018, and punishable under Section 111 (2) of the Federal Competition and Consumer Protection Act, 2018.

    When the case was mentioned before Justice H.J. Yilwa on Monday, the defendant were absent in court.

    This development promoted Justice Yilwa to ask FCCPC’s lawyer,  Chizenum Nsitem, about the defendants’s whereabouts.

    Responding, Nsitem told the court that, although the case was scheduled for the arraignment of the defendants, he was just briefed about the case.

    He requested for time to study the case file and take the necessary steps.

    Justice Yilwa consequently adjourned till  May 28 for arraignment.

  • Excessive ATM charges: Why FCCPC must act now

    Excessive ATM charges: Why FCCPC must act now

    Sir: The recent circular issued by the Central Bank of Nigeria (CBN) (Ref: FPR/DIR/GEN/CIR/001 /002, dated February 10) has sparked outrage among millions of Nigerian consumers. The revised structure for Automated Teller Machine (ATM) transaction fees, scheduled to take effect from tomorrow, March 1, introduces steep charges that will disproportionately impact low-income earners who depend on ATMs for their everyday financial needs.

    The Federal Competition and Consumer Protection Commission (FCCPC) has a clear and broad statutory mandate under the Federal Competition and Consumer Protection Act (FCCPA) to intervene in matters that adversely affect consumer interests. Sections 17, especially 17(l)(a), 17(1)(b), and 17(1)(c) of the FCCPA empower the commission to review economic activities, identify anti-consumer practices, and take necessary actions to protect Nigerians from exploitation. The FCCPC must act decisively, as this policy is not a monetary or fiscal policy decision but a business decision by the CBN that is in favour of bank profitability over consumer protection.

    The misconception that every action of the CBN is insulated from regulatory scrutiny under the guise of its monetary policy powers must be corrected. Where the CBN acts in a manner that clearly prioritizes the profitability of banks over consumer protection, the FCCPC has the authority—and indeed the responsibility—to intervene. The FCCPC is vested with broad powers to check anti-consumer practices, whether they originate from private businesses or government institutions. In this case, the commission has both the legal mandate and the moral responsibility to intervene

    The anti-consumer nature of the recent policy is evident in several ways. First, the policy places a disproportionate burden on consumers withdrawing of another bank’s ATM by introducing a N100 charge per N20,000 withdrawal at on-site and  a charge of N100 at off-site ATMs and an additional surcharge of up to N500 per N20,000 withdrawal at off-site ATMs. These new charges are separate and distinct from other numerous charges that financial consumers are mandated to pay. This effectively forces people to pay extra just to access their own money.

    The removal of the three free monthly withdrawals for “Not-On-Us” transactions worsens the financial strain on ordinary Nigerians, making it even more expensive to use banking services.

    The CBN argues that these charges are meant to accelerate ATM efficiency and ensure appropriate pricing. However, there is no evidence to support this claim. Past increases in banking fees have not led to any significant expansion of ATM infrastructure. Instead, banks have simply profited from the additional charges without improving service delivery. As a result, while the total number of ATMs may not have decreased, the existing infrastructure remains inadequate to meet consumer demand, leading to  higher withdrawal expenses by forcing many consumers to rely on even more pricey POS vendors.

    On a closer scrutiny, this policy represents a violation of consumer protection principles. The CBN’s new fee structure will only widen the financial exclusion gap by making banking services more expensive and less accessible to consumers, especially for those in rural and underserved areas. When bank charges gets too much and expensive, such policy undermines financial inclusion rather than promoting it; thereby undermining the CBN’s own stated goals.

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    To protect Nigerian consumers, the FCCPC must take the following immediate actions:

    Conduct an urgent review to assess its impact on consumers and determine whether it constitutes an anti-consumer practice.

     The FCCPC should press for the suspension of the new ATM fees until a thorough review and meaningful stakeholder engagement takes place, ensuring no consumer is subjected to unfair charges until a full review is completed. Also, it should initiate direct consultations with the CBN, advocating for consumer-friendly banking policies that do not impose undue financial burdens on Nigerians. 

    Finally, the commission should recommend necessary corrective measures to the federal government, as empowered under Section 17(1)(c) of the FCCPA, ensuring that any future adjustments to banking fees prioritize consumer protection alongside financial sector profitability.

     This is an opportunity for the commission to exercise its broad statutory mandate and take a firm stance in defence of Nigerian consumers. We urge the FCCPC to intervene decisively and set a precedent that consumer interests must always be a consideration.

    •Opatola Victor Esq,victor@lacivler.org

  • Agency wins medals at Lisbon fiesta

    Agency wins medals at Lisbon fiesta

    Advertising Agency, X3M Ideas, has won two awards at 2024 Lisbon International Advertising Festivals Group.

    The win marks the second consecutive year the agency will be winning the awards in Lisbon, Portugal. It won two bronze medals for the campaign “Don’t Burn Their Future” done for Federal Competition and Consumer Protection Commission (FCCPC). The campaign won in Awareness, Fundraising & Advocacy Campaign category and Health Wellness Campaign category.

    Last year, X3M Ideas won silver and bronze medals for ‘The Soot Life Expectancy’ and ‘Vote For Your Future’, and was African Agency to win.

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     ‘Don’t Burn Their Future”, aims to combat the growing consumption of tobacco products among youths. It also addresses rise in young and underage access to tobacco products and intends to curb the impact on society.

    X3M Ideas leveraged Nollywood and created a 26-episode  telenovela with a storyline that dramatises the dangers of smoking in a format loved by Nigerians. This was supported by a national campaign that included TV, OOH, social, and Nigeria’s first “burning” billboard, all demonstrating children’s dreams going up in smoke.

    X3M Ideas’ Chief Executive, Steve Babaeko, said the award is dedicated to FCCPC and its clients for believing in his agency. He added the win would inspire his team to give their best, and to continue impacting                               society.