How Nigerian Railway Corporation is violating consumer rights

The Nigerian Railway Corporation (NRC) has stated unequivocally on its website that it does not have a refund policy. This means that a ticket already paid for by an intending traveller is not returnable for purpose of getting a refund.

Consumertrics considers the NRC’s ‘NO REFUND POLICY’ a violation of consumer right, as enshrined under the Federal Competition and Consumer Protection Act (FCCPA). It is also an affront to the judicial decision given against such anti-consumer policy.

Section 120 of the FCCPA provides that (i.) “A consumer shall have the right to cancel any advance booking, reservation or order for any goods or services, subject to a reasonable charge for cancellation of the order or reservation by the supplier or service provider.”

The accompanying provisions compel the service provider to charge “a fair amount,” based on “the nature of the affected goods or services, the length of notice of cancellation by the consumer, and the supplier or service provider being able to find an alternative consumer between when the booking or reservation was cancelled.”

In addition, the said Act forbids a service provider from charging a booking or reservation cancellation fee, in situation of sudden death or hospitalization of the consumer.

Importantly too, the FCCPA frowns upon the inclusion of a NO REFUND POLICY in TERMS AND CONDITIONS of service providers, based on the combined provisions of Section 129 of the Act.

Besides the FCCPA, Consumertrics recalls the suit filed by Mr. Patrick Chukwuma, a lawyer, against Peace Mass Transit Limited in July 2021. The fact of the case was about Chukwuma missing his trip and the refusal of the transport company to refund him the money paid for the ticket.

Delivering judgment in the suit, Justice C. O. Ajah of the Enugu State High Court, set aside the company’s no refund policy, based on its contravention of the provisions of sections 120, 104, 129(1)(a) and (b)(iii) of the FCCPA. The Court further ordered the defendant (the transport company) to pay N500,000.00 as damages to the litigant (Patrick Chukwuma).

CONCLUSION:

Consumertrics, in the light of the foregoing, advises the Nigerian Railway Corporation (NRC) against undermining the country’s law. We are also advising the FCCPC to seek to correct this brazen illegality, while we encourage consumers to learn about the rights and enforce same in circumstances of a violation.