In what could become some of the most consequential legal battles in Nigeria?s banking history, bank customers have instituted a class action lawsuit against two of the leading banks in the country.

In one case, six plaintiffs representing millions of customers filed a case against Access Bank at the Federal High Court, Lagos Division. The plaintiffs, Akinyele Oluwemimo Olaniyan. Sowole Olufunke Olukemi; Adetoun Anthonia Osunbade; Sowole Abidemi Olusola; Adegboyega Adeola Odunsi and Tokunboh Fagun, allege gross negligence, breach of contract, and violation of consumer rights following a catastrophic IT meltdown in August 2024.

The plaintiffs, acting on behalf of themselves and other affected customers, are demanding N420 billion in damages, citing loss of access to funds, emotional distress, and exemplary damages. They claim that the banking disruption, which lasted over a week, paralyzed personal lives and businesses, with customers unable to make essential payments despite having sufficient funds in their accounts.

In the second ground-breaking case, Moyosola Okeremi acting on behalf of herself and an estimated 33 million customers of Zenith Bank, has instituted a lawsuit against Zenith Bank Plc at the Federal High Court, Lagos Division.

Okeremi accuses Zenith Bank of violating fundamental data protection laws, infringing on privacy rights, and causing emotional distress through persistent, unsolicited marketing communications.

The plaintiff alleges that Zenith Bank, a public liability company operating in Nigeria and internationally in countries such as the United Kingdom, Gambia, Ghana, Sierra LeoneChina, and the UAE, unlawfully exploited customers? personal data. This data, which includes names, dates of birth, phone numbers, email addresses, signatures, and other sensitive information, was originally collected under the ?Know Your Customer? (KYC).

Guidelines mandated by the Central Bank of Nigeria (CBN)Okeremi contends that while the data was collected for legitimate banking purposes such as issuing account statements?Zenith Bank repurposed it without obtaining explicit consent from the customers.

Between July and August 2024, customers reportedly received relentless marketing communications via phone calls, text messages, and emails promoting Zenith Bank?s public share offerings.

These unsolicited communications, she argues, were not only intrusive but also violated several legal statutes, including the Nigeria Data Protection Regulation (NDPR) 2019 and the National Data Protection Act (NDPA) 2023. The plaintiffs claim that Zenith Bank?s actions were unfair, inconsiderate, and executed without any regard for the privacy of its customers.

In the case against Access Bank, the plaintiffs argue that Access Bank?s failure to maintain a robust IT system and implement contingency plans during service disruptions constitutes a breach of the contractual obligations owed to its customers.

They emphasized that the bank, licensed by the Central Bank of Nigeria (CBN) and with over 36 million customers as of 2023, has a legal duty to provide uninterrupted financial services.

The plaintiffs claim that Access Bank breached several legislations such as the Central Bank of Nigeria Consumer Protection Regulations 2019, the Federal Competition and Consumer Protection Act 2018, and the Constitution of the Federal Republic of Nigeria 1999 (as amended) by failing to ensure continuous service delivery and by not having adequate backup systems in place.

They also cite the Consumer Code of Practice Regulations 2007 and the Consumer Protection Framework 2016, which mandate financial institutions to safeguard consumer interests and ensure service reliability.

The plaintiffs allege that the IT meltdown caused widespread hardships, harassment from creditors, inability to pay for essential services such as school fees, medical bills, utilities, and business transactions, resulting in emotional distress, embarrassment, and financial losses.

The lawsuit claims N200 billion for the inability to access funds, N200 billion for emotional distress, and an additional N20 billion in exemplary damages to deter future negligence.

These cases could set a significant precedent for Nigeria?s financial sector, particularly regarding customer rights in the digital banking era. (Text, excluding headline: BusinessDay)

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