The Nigerian House of Representatives has launched an inquiry into what it calls “arbitrary, excessive, and unjustified” deductions from customers’ accounts by deposit money banks across the country. The decision was made during a plenary session on Tuesday, following a motion of urgent public importance presented by Kwara lawmaker Tolani Shagaya, with Speaker Tajudeen Abbas presiding.
Titled “Urgent Need to Address Arbitrary Bank Charges and Safeguard Nigerian Customers,” Shagaya’s motion highlighted the persistent issue of banks imposing excessive fees on customers, despite repeated warnings from the Central Bank of Nigeria (CBN). He pointed out that these charges, including high SMS alert fees, card maintenance costs, account maintenance deductions, and interbank transfer fees, are a growing burden on Nigerians already grappling with economic challenges.
This is not the first time the House has raised concerns about such practices. In 2016, a motion by former Kogi State representative Tajudeen Yusuf criticized banks for misapplying the N65 ATM withdrawal fee, which the CBN had stipulated should only apply after a third withdrawal from another bank’s ATM. Similarly, in 2023, lawmaker Godwin Offiono condemned banks for “fleecing customers” through unauthorized deductions that violated financial regulations.
Shagaya warned that unchecked bank charges could erode public confidence in the financial system and hinder the CBN’s efforts to promote financial inclusion and a cashless economy. “When Nigerians lose trust in banks, it undermines the government’s push for a robust digital economy,” he stated.
Following the adoption of the motion, the House issued several directives to address the issue. It urged the CBN to publish a clear and comprehensive list of approved bank charges to improve transparency and public awareness. The lawmakers also called on the CBN to enforce stricter compliance with its guidelines and impose penalties on banks that violate regulations. Additionally, the House mandated the CBN to create an efficient and accessible mechanism for customers to file complaints and seek swift resolutions for issues related to unfair charges.
Beyond the banking sector, the House directed the Federal Competition and Consumer Protection Commission (FCCPC) and other relevant agencies to launch a nationwide campaign to educate Nigerians about their rights and available avenues for addressing grievances.
The House Committee on Banking Regulations has been tasked with summoning representatives from the CBN and major commercial banks to address concerns about unauthorized deductions. The committee is also expected to monitor compliance with banking regulations and propose legislative or regulatory measures to enhance consumer protection.
The move reflects growing frustration with banking practices that continue to strain customers’ finances, particularly in the face of economic hardship. The House’s actions aim to restore trust in Nigeria’s financial system and ensure fair treatment for bank customers nationwide.
