AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
The Federal Competition and Consumer Protection Act 2018 gives consumers rights to return goods in good condition within a reasonable time, to cancel advance bookings for a refund less reasonable charges, and to goods fit for purpose. A 'no refund' sign does not override these rights, and any limit on refunds must be disclosed in writing. Refund to the original payment account, with approval and a record.
What the FCCPA says
The FCCPC summarises consumers' rights under the Federal Competition and Consumer Protection Act 2018. Those that matter most for refunds are:
- Right to cancel advance bookings (s.120)
- A consumer can cancel an advance booking or reservation and is generally entitled to a refund, less reasonable cancellation charges. Where a price or promotion limits refunds, the business must disclose this in writing. In some circumstances a full refund is due regardless.
- Right to return goods (s.122)
- A consumer can generally return a product, as long as it remains in good condition and is returned within a reasonable time, except in limited circumstances.
- Goods fit for purpose and quality (s.131, s.132)
- Goods should be suitable for the purpose they are sold for and of reasonable quality.
- Unfair terms (s.129)
- Terms that try to waive liability for fraud, negligence or defective performance are unenforceable.
- Disclosure (s.128)
- Terms that limit your liability must be brought to the consumer's notice before the transaction.
Consumers who are not satisfied can complain to the FCCPC, which runs an online complaints portal. Handling refunds properly yourself is cheaper than a regulatory complaint, and a customer who is treated fairly over a faulty item often comes back to buy again.
What this means for 'no refund' signs
A 'no refund, no exchange' notice does not remove the rights above. If the goods are faulty or not as described, the customer still has a claim. What you can do is set clear, written terms for change-of-mind returns, for example 'unopened items within 7 days with receipt', and display them before the sale. Keep it honest: a term that sounds like it removes rights the law gives the customer creates disputes rather than preventing them.
A refund process that protects both sides
- Check the sale. Find the original receipt and payment. Our guide to what a receipt should include explains why an itemised, numbered receipt makes this quick.
- Check the item. Condition, completeness, and whether it falls under your written returns terms or under a fault claim.
- Decide: refund, exchange, repair or decline. Record the reason.
- Approve. Refunds above a small amount should need a manager or owner's approval. See who should approve payments.
- Pay back to the original account. Refund to the account the money came from, not to a new number the customer gives.
- Record it. Issue a credit note or refund receipt that references the original sale, and update stock.
Tell the customer what happens next
Once a refund is approved, tell the customer the amount, the account it is going to and when it was sent, and give them the transfer reference. If you are refunding part of a payment, for example keeping a disclosed cancellation charge, show the calculation. Most refund complaints are about silence rather than money: a customer who has a reference and a clear figure rarely escalates.
Refund fraud to watch for
- The overpayment trick. A 'customer' claims to have sent too much and asks for the difference back. Check your own account. Often nothing extra arrived, or the original payment is later reversed; see chargebacks and reversals in Nigeria.
- Edited receipts. A receipt with a higher amount than was paid. Match every refund to your own sales record, not the paper the customer brings.
- Staff refunds to themselves. Voided sales and refunds concentrated on one till or one staff member.
- Returns of different goods. A cheaper or used item returned in the original box. Check serial numbers on electronics.
Worked example
Example: a phone accessories shop sells a power bank for ₦32,000. Three days later the customer returns it: it will not charge. Because the fault is with the product, the shop's 'no refund' sign does not apply. The supervisor checks receipt 00921 and the transfer of ₦32,000, confirms the fault, and offers a replacement or refund. The customer chooses a refund. The manager approves it, ₦32,000 goes back to the account that paid, a refund receipt referencing 00921 is issued, and the faulty unit is logged for return to the supplier. The whole process takes ten minutes and leaves a record.
Bookings and deposits
For hotels, event venues, caterers and salons that take bookings, set your cancellation charges in advance and in writing, and make sure they are reasonable. The FCCPA allows reasonable cancellation charges but expects the rest to be refunded. Our guide to taking deposits and part-payments covers how to word these terms.
Where Pryme fits
With a Pryme Business Account, the Customer Support agent can prepare refund decisions and replies from your written policy, and refunds above the ceiling you set wait for a person to approve them. Every action is recorded, and refunds can be sent back by transfer with a regular or verifiable receipt.
Questions people ask
Is 'no refund' legal in Nigeria?
A business can set written limits on change-of-mind returns, but a 'no refund' sign does not remove a consumer's rights under the FCCPA, such as the right to goods fit for purpose. Terms that waive liability for fraud or negligence are unenforceable.
How long does a customer have to return goods in Nigeria?
The FCCPA says goods can generally be returned within a reasonable time if they remain in good condition. It does not set a single number of days, so state your own period in writing.
Can I charge for cancellations?
Yes, reasonable cancellation charges are allowed for advance bookings, but the consumer is generally entitled to a refund of the rest, and limits must be disclosed in writing.
Where can customers complain about refunds?
They can complain to the business first, and then to the FCCPC through its complaints portal.
Sources
- FCCPC: Consumer rights and responsibilities · accessed Oct 2026
- Olaniwun Ajayi: Examining the no-refund policy under contractual terms in Nigerian law · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.