‘No refund, no exchange’ policies are familiar in Nigeria’s business space. Businesses use them to set the terms under which customers can return purchased goods. But when a product is faulty or differs from what was advertised, such policies raise an important question: can a seller refuse a refund simply because the customer was told that returns were not allowed?

The Federal Competition and Consumer Protection Act (FCCPA) 2018 provides protections for consumers in Nigeria.

Section 122 sets out circumstances in which goods may be returned for a full refund, including when goods supplied for a particular purpose communicated to the seller prove unsuitable within a reasonable time.

It also covers certain goods that consumers could not examine before delivery and that do not correspond with the description, sample or quality reasonably contemplated in the sales agreement.

Section 129 addresses prohibited transactions, agreements, terms and conditions, including provisions that seek to exclude or restrict legal obligations. The Act also protects consumers against misleading representations and provides for the quality and safety of goods.

These provisions do not give customers an unrestricted right to return goods whenever they change their minds. Whether a refund or another remedy is available depends on the circumstances of the purchase and the rights provided by law.

For some consumers, however, the distinction between a seller’s return policy and their legal rights becomes clear only after a purchase goes wrong.

When A Product Fails
James Abigail accompanied her mother to a microwave showroom in Ikorodu, Lagos, where they tested a Century microwave before buying it for ₦150,000.

The appliance worked during the test, but the experience changed when they took it home. According to Abigail, her mother tried to warm soup in it, but it did not work. She tried again with rice and encountered the same problem.

Her mother packed the microwave back into its carton and returned to the seller the following day.

“The seller refused to refund the money or exchange the appliance” Abigail said. He maintained that the microwave had worked when they tested it in the showroom before taking it away.

The disagreement continued for hours. Eventually, after Abigail’s mother raised her voice, the seller offered another brand, LG, but demanded an additional ₦60,000.

Abigail said her mother considered the extra charge unfair because they had bought the original microwave only the previous day.

“I am the one that eventually paid the ₦60,000 for peace to reign,” she said.

They left with a different microwave, but Abigail remained unhappy with the way the transaction was handled. They had returned an appliance that, according to her account, did not work at home, yet they had to pay more to obtain a replacement.

For Peter Agbotai, a dispute over a computer accessory ended differently.

He bought a detachable laptop keyboard for ₦80,000 from a seller at Computer Village in Ikeja, Lagos, after the keyboard he had been using developed a problem.

He was in a hurry because the market was about to close. He tested the mouse function, which was the part that had given him trouble with his previous keyboard, but did not check all the keys.

He did not use the laptop for three days. When he eventually did, he discovered that the space bar on the new keyboard was not working.

Agbotai packed the keyboard into his laptop bag and returned to the seller the next day. He said the seller became defensive, raised his voice and insisted that he should have brought it back immediately. The seller also argued that more than three days had passed.

Agbotai, who said he was also angry during the exchange, threatened to report the matter to the police. At the time, he did not know about the Federal Competition and Consumer Protection Commission (FCCPC).

Later that night, the seller called to apologise and asked him not to involve the police. He agreed to exchange the keyboard, and Agbotai returned to collect another one.

The exchange resolved the problem, but Agbotai said he learnt about the FCCPC only through social media some time later.

When Product Differs From Advertisement
Morenikeji Alarape’s experience involved an online purchase. Around 2022, she bought a wig from a hair vendor on Instagram for ₦150,000.

The vendor had displayed a “No refund, no exchange” policy in the account’s biography before the transaction. Alarape saw it but believed that the hair she received would match what had been advertised.

She was disappointed when the wig arrived.

Alarape described the hair as being in very poor condition and said the vendor did not explain why the product differed from what she had ordered. Instead, the seller directed her to the policy in the Instagram biography.

Alarape attempted to improve the wig by revamping it, even though she had not worn it before. She remained dissatisfied, wore it twice and eventually stopped using it.

The experience has stayed with her. She said she still feels hurt when she remembers spending ₦150,000 on a product she did not consider worth the money.

Alarape said the experience changed how she approaches online shopping. She now prefers to buy from Temu because her experiences with its refund process have been more straightforward.

She recalled buying an item from the platform and was dissatisfied with its material. After she complained, a rider was sent to collect the item and she received a refund. She said the process took less than 30 minutes.

What The Law Says About Refunds
Speaking with a lawyer, Zaenab Olawunmi Adams on consumer rights and protection in Nigeria, she said businesses cannot use a blanket “No refund” policy to override statutory consumer rights under the FCCPA.

She explained that the law provides consumers with rights concerning the goods and services they purchase, including the right to return goods and obtain a refund in specified circumstances. However, she stressed that the remedy available depends on the nature of the transaction and the issue being raised.

“The rights of consumers to return or obtain a refund depend on the goods or services involved,” Adams said.

Section 122 is particularly relevant to disputes involving goods that fail to meet a purpose communicated to the supplier. For example, where a customer tells a seller that a blender is needed to blend tomatoes and the product proves unsuitable for that purpose within a reasonable time after delivery, the circumstances may support a claim for a refund.

The section also covers certain goods that a consumer did not have the opportunity to examine before delivery. If the consumer rejects them within a reasonable time because they do not correspond with the description, sample or quality reasonably contemplated in the sales agreement, the Act provides for a full refund.

The question of what amounts to a reasonable time depends on the circumstances. A consumer who discovers a fault should not assume that they can wait indefinitely before reporting it. Promptly checking the product, documenting the problem and contacting the seller can help establish when the fault was discovered and what steps were taken.

Adams also referred to the Act’s provisions on the quality of goods and the obligations of suppliers. She said consumers are entitled to safe, good-quality goods that meet the relevant standards and are fit for their intended purpose. The law provides for remedies where goods fail to meet applicable requirements, although the precise remedy depends on the circumstances.

Adams put the distinction plainly: “‘I do not like it anymore’ is entirely different from ‘this vendor sold me something defective or misrepresented from what was advertised, and I ordered based off the advertisements.’”

The FCCPA also provides a right to cancel an advance reservation, booking or order, subject to the conditions set out in Section 120. That provision allows a supplier or service provider to impose a reasonable cancellation charge in relevant circumstances. It should not be confused with an unrestricted right to return any product after a completed purchase.

Adams said consumers should therefore avoid assuming that every purchase can be reversed, just as sellers should not assume that displaying a no-refund notice removes every obligation they have under the law.

Does Seeing Policy Before Payment Change Anything?
One argument sellers may make is that customers were informed of the return policy before buying. Alarape, for example, had seen the Instagram vendor’s “No refund, no exchange” notice before paying for the wig.

Adams said that displaying a policy in advance does not automatically remove rights provided by law.

Under the FCCPA, certain terms and conditions that seek to exclude or restrict legal obligations may be prohibited. Section 129 addresses prohibited transactions, agreements, terms and conditions, while other provisions of the Act deal with unfair contractual terms and notices.

This does not mean that every no-refund notice is unlawful in every circumstance. The legal position depends on what the policy covers, the transaction involved and whether the consumer is seeking a remedy that the law provides.

Taking Complaint To FCCPC
The FCCPC is responsible for protecting and promoting consumers’ interests and enforcing the FCCPA. It receives complaints about consumer transactions and provides information to help consumers understand their rights and businesses understand their obligations.

The commission’s zonal coordinator for the Southwest Zonal Office in Lagos, Dr Olubunmi Dorcas Otti, said consumers are entitled to products that are safe, of acceptable quality and suitable for the purpose for which they were purchased.

She explained that a consumer’s complaint should be considered in relation to what the seller promised and what the product actually does. If a buyer communicates a particular purpose to the seller and the product proves unsuitable, the consumer may have grounds to seek a remedy under the Act.

Otti said a seller cannot simply rely on a “No refund, no return” policy to refuse a remedy where a consumer is legally entitled to one because the product is defective or does not meet the agreed requirements.
The commission’s role includes receiving complaints, examining the circumstances and taking appropriate action within its powers.

Otti said a seller’s refusal to address a valid complaint does not remove the consumer’s right to seek redress.

Consumers can submit complaints through the FCCPC’s online complaint portal at complaints.fccpc.gov.ng. Otti said users are required to provide details of the transaction and follow the prompts to submit their complaint. Supporting documents can be attached, and the process generates a case number.

She advised consumers to retain proof of payment. Depending on the complaint, useful supporting material may include receipts, screenshots of advertisements, photographs or videos of the product, messages exchanged with the seller, warranty information and records of the seller’s response.

The evidence helps establish what was bought, what was promised, when the problem arose and whether the customer attempted to resolve the matter directly with the business.

Consumers who cannot afford a lawyer or the cost of taking a case to court can approach the commission with their complaint and available documents. Adams also advised consumers to seek legal guidance where necessary, particularly when a dispute involves questions about the rights available under the law.

However, consumers should be realistic about the process. Submitting a complaint does not automatically guarantee a refund. The commission must consider the facts and the applicable provisions before determining the appropriate steps.

Otti said the commission has offices in several locations, including Lagos, Ibadan, Osogbo, Awka, Port Harcourt, Katsina, Bauchi, Kano, Kaduna and Plateau State. Consumers who need assistance can seek guidance through the commission’s available channels.

Building Awareness Among Consumers, Businesses
Otti said a lack of awareness remains a challenge in consumer protection. Some buyers may not know that they can report a transaction or that the law may provide a remedy when a product is defective or does not match what was agreed.
She said the commission explains the relevant provisions to consumers who approach its offices with complaints. Its public education work also includes workshops, seminars, radio and television programmes, market visits and educational activities in schools.

The commission runs Consumer Fans Clubs in primary schools, Young Consumer Clubs in secondary schools and Consumer Ambassadors programmes in universities. These initiatives are intended to introduce consumer rights and responsibilities to people at different stages of their education.

It also produces educational materials in English, Nigerian Pidgin, Yoruba, Hausa and Igbo. Otti said the commission uses these materials to make information more accessible to consumers who may not be familiar with the language of the law.

The commission’s outreach also targets businesses. Otti said its engagement with traders and other businesses is intended to explain consumer rights, suppliers’ obligations and the consequences of failing to comply with the law.

She said the commission had engaged banks and telecommunications operators in the previous year and was focusing on other sectors, including supermarkets and electricity distribution, in its subsequent outreach work.

The emphasis on business education reflects the fact that consumer protection is not only about informing buyers of their rights. Sellers also need to understand their obligations, how to respond to complaints and when a refund, replacement or another remedy may be required.

Otti said consumers who understand their rights are better placed to question poor products and seek help when disputes arise. She also noted that consumer education can encourage businesses to improve their practices when customers become more assertive about the quality of goods and services.

What Consumers Can Do Before, After Purchase
For consumers shopping online, Otti advised buying from reputable vendors and checking whether the seller has a verifiable physical address. She also suggested considering payment on delivery where it is available, particularly when a buyer is uncertain about a seller.

Consumers should read product descriptions carefully and save the advertisement or listing before paying. Where a seller makes specific claims about a product, keeping a record of those claims can help if the item delivered does not match what was promised.

For purchases in physical stores, buyers should inspect goods where possible and test them in accordance with the nature of the product. This may not reveal every defect, but it can help identify obvious problems before the customer leaves the shop.

After a purchase, consumers should check the product promptly and contact the seller as soon as a problem becomes apparent. They should explain the issue clearly, state what remedy they are seeking and keep a record of the response.

A complaint is easier to assess when it contains specific information rather than a general statement that the product is unsatisfactory. A buyer who says an appliance will not perform the function for which it was purchased, for example, should explain what happens when it is used and provide evidence where possible.

Adams said consumers should preserve the evidence they may need if they decide to pursue a complaint. This includes proof of payment, the conversation trail with the seller, evidence of the defect, the advertisement that prompted the purchase and any warranty information.

Where a seller refuses to resolve a complaint, consumers can approach the FCCPC with the available evidence. They may also seek legal advice if they need help determining their rights or considering further action.

Access To Redress
Adams said one area that needs improvement is the accessibility and speed of redress, particularly for consumers pursuing claims involving relatively small amounts of money.

The cost and effort required to challenge a transaction may discourage some consumers from taking further action, even when they believe they have a valid complaint. For a customer who has lost money on a faulty appliance, a defective accessory or an item bought online, the decision to pursue a remedy may depend partly on whether the process appears manageable.

The FCCPA provides a legal framework for consumer protection, but consumers must still be able to identify when a complaint may fall within that framework and know where to take it. Businesses, in turn, need to understand that a notice displayed before payment does not necessarily remove their statutory obligations.

Adams said the existence of consumer protection law should not be interpreted as giving buyers an unrestricted right to return goods or demand compensation without a valid reason. The entitlement to a remedy depends on the nature of the transaction, the quality and conformity of the goods or services, the agreement between the parties and the specific rights engaged.

Consumers are not entitled to a refund simply because they change their minds. However, sellers cannot use a “No refund, no exchange” policy to avoid their legal responsibilities when a product is faulty or differs from what was advertised.

For consumers who find themselves in that situation, keeping evidence, reporting the problem promptly and seeking guidance from the FCCPC may provide a way to pursue redress beyond an argument with the seller.