House of Representatives, on Tuesday, resolved to investigate the growing complaints by Nigerians over arbitrary and unexplained deductions by commercial banks across the country.
This followed the adoption of a motion sponsored by Hon. Tolani Shagaya (APC, Kwara) who raised concerns about what he described as “incessant, arbitrary, and unexplained charges” being deducted from customers’ accounts despite existing Central Bank of Nigeria regulations.
Shagaya while presenting the motion during plenary on Tuesday, noted that while banks are expected to provide essential financial services at fair costs, many Nigerians have continued to face multiple deductions such as SMS alert fees, card maintenance fees, account maintenance charges, interbank transfer fees, stamp duties, and other unexplained debits, many of which he said, are duplicated or unaccounted for.
The lawmaker lamented that such practices persist even though the CBN has issued clear guidelines regulating bank tariffs, most of which are being flouted with impunity by financial institutions.
He said, “These exploitative practices disproportionately affect businesses, low-income earners, students, and vulnerable groups who are already struggling amid harsh economic realities.
“If not urgently investigated and addressed, they will continue to erode public trust in the banking system, increase financial exclusion, and undermine the CBN’s financial inclusion objectives.”
Adopting the motion, the lawmakers urged the CBN to publish a comprehensive and simplified list of approved bank charges and ensure strict enforcement of penalties against erring banks.
They also urged the apex bank to establish an accessible and efficient complaints redress mechanism for customers affected by illegal or excessive charges.
The House also urged the Federal Competition and Consumer Protection Commission (FCCPC) and other relevant agencies to embark on nationwide consumer education campaigns to enlighten customers about their rights regarding bank fees and charges.
The motion further directed the House Committee on Banking Regulations and Banking Institutions to invite the CBN and major commercial banks to appear before it and explain the recurring cases of arbitrary deductions.
The committees were also mandated to report back to the House within four weeks for further legislative action.
