Consumer Class Actions In Nigeria: Rights, Trends & Corporate Risks

Your bank deducts money you don’t understand or you order something online and what is delivered is completely different from what was advertised.

You complain, others complain, and suddenly you realize many people are experiencing the exact same thing.

What most Nigerians don’t know is:

You can actually go to court as a group not just as individuals. That is where consumer class actions come in.

Can Consumers Sue as a Group in Nigeria? 

As explained in the article : CLASS & GROUP ACTIONS IN NIGERIA 

A class action is a lawsuit filed on behalf of a group of people who have all in a similar way been injured by the actions of the defendant. 

A consumer class action therefore is a collective lawsuit filed by a group of consumers, usually against a business whose product or service caused them loss.

Under Section 44 of the Federal Competition and Consumer Protection Act (FCCPA),  consumers can bring group or representative actions.

Under this law, a collective action can be filed by:

• Affected consumers,

• Civil society organizations,

• Consumer protection associations, or

• The FCCPC itself acting in the public interest.
  
  

Although Nigeria doesn’t have a single, dedicated class-action law, Section 44 is the country’s closest framework.

In practice, courts treat these cases as representative suits, where one or more consumers sue on behalf of everyone affected.

How Consumer Class Actions work 

To bring a consumer group claim:

• One or more people act as representatives.

• They must show that the others suffered the same type of injury.

• The court must approve (“certify”) the representation.

• Other affected consumers may be notified to join or opt out.

Common consumer disputes that trigger group claims include:

• Unlawful bank charges and deductions

• Failed POS/transfer transactions

• Airline delays and cancellations

• Telecom billing or network issues

• Failed online deliveries

• Ad-tech targeting, data misuse, or privacy breaches 

Recent Nigerian Examples of Consumer Group Litigation

Although Nigeria does not have a dedicated class action statute, several real-world cases show how consumers increasingly try to act as a group when the harm affects many people at once. Two examples stand out: the Multi-Choice (DSTV) price-hike cases and the Peace Mass Transit accident-related actions in Enugu.

A. Multi-Choice (DSTV) Price-Hike Litigation :  When Consumers Challenged a Corporate Giant

Few cases illustrate consumer collective action in Nigeria as clearly as the long-running battles between Multi-Choice Nigeria (operator of DSTV) and its subscribers.

Across several years:

• Federal High Court, Lagos:

  Consumer groups filed suits seeking to stop price hikes.
  
  

• Federal High Court, Abuja

  Similar suits were filed by multiple subscribers.
  
  

• Competition & Consumer Protection Tribunal (CCPT)

  Some consumers approached the tribunal collectively.
  
  
  

Although the courts eventually held that pricing is a business decision, the significance lies in procedure, not outcome.

The DSTV case shows that:

• Nigerians will attempt collective action when millions are affected.

• Small individual losses (₦2,000 – ₦5,000) become powerful when multiplied.

• The FCCPC was drawn into the disputes, reinforcing its role in large consumer issues.
  
  

Most importantly, these filings were treated as representative group claims, proving that Nigeria’s courts already accommodate consumer class-like actions.

B. Injury & Wrongful-Death Group Claims from the Peace Mass Transit Litigation in Enugu

Peace Mass Transit (PMT), one of Nigeria’s largest transport companies, has faced several group-style lawsuits - especially in Enugu, its base of operations.

Following various accidents leading to injuries and deaths:

• Survivors

• Families of deceased passengers

• Groups represented by the same law firm often filed combined or representative claims.

These suits usually alleged:

• Negligence

• Poor vehicle maintenance

• Breach of duty of care

• Claims for compensation and medical expenses.
  
  

Even though each victim technically has a separate claim, courts allowed joint filings because:

• The facts were the same

• the defendant was the same

• Individual lawsuits would be too expensive.
  
  

The PMT cases show why mass-harm consumer incidents are natural grounds for group litigation in Nigeria.

Why This maters to Companies

Consumer group actions are becoming a major litigation and reputational risk.

Because:

• One mistake can trigger thousands of claims.

• Individual losses add up quickly when multiplied.

• Social media escalation can damage a brand in hours.

• FCCPC  enforcement is getting more aggressive.

To reduce the risk, companies should:

• Build a strong consumer-complaint response process.

• Fix systemic issues before they affect many customers.

• Maintain proper records of refunds, reversals and resolutions.

• Ensure full FCCPA compliance.

• Strengthen contracts with vendors or partners to avoid shared liability.

• Set up crisis-management and communication protocols.
  
  
  

Conclusion

Consumer class actions though not formally codified are  clearly emerging in Nigeria.

With Section 44 of the FCCPA, Nigerian courts and regulators now recognize situations where consumers act collectively when affected by the same harm.

For companies, this means:

Compliance is no longer optional, one systemic failure can create a nationwide group claim.

This article forms part of our ongoing series on class actions in Nigeria.