The House of Representatives has adopted an urgent motion calling for an immediate investigation into arbitrary, excessive, and unexplained bank charges imposed on customers by commercial banks in the country.
The motion, titled “Urgent Need to Curb Arbitrary Bank Charges and Protect Nigerian Customers,” was sponsored by Hon. Akin Alabi Shagaya.
He expressed concern over the growing frustration among bank customers facing multiple and unjustified deductions in defiance of Central Bank of Nigeria (CBN) regulations.
Presenting the motion on Tuesday, Hon. Shagaya lamented that while banks are expected to provide financial services at fair costs, many Nigerians have continued to experience multiple, unaccounted deductions that further strain their finances.
“These arbitrary charges have persisted despite clear CBN directives. They have become a major source of concern for Nigerians who are already battling economic hardship,” Shagaya said.
He identified some of the recurring complaints to include excessive SMS alert fees, card maintenance charges, account maintenance deductions, interbank transfer costs, stamp duties, and other unexplained debits, many of which he described as duplicated, illegal, or simply unjustified.
He warned that if urgent steps were not taken, the situation would continue to erode public trust in the nation’s banking system, discourage savings, and undermine the Central Bank’s financial inclusion objectives.
“These incessant charges have become not only a source of frustration but also a barrier to financial inclusion. When citizens lose confidence in the banking system, it defeats the government’s efforts to build a robust digital and cashless economy,” he added.
The House noted that similar concerns had been raised over unethical practices in the banking sector. In 2016, former lawmaker Hon. Tajudeen Yusuf exposed how banks abused the ₦65 ATM withdrawal charge, which the CBN had stipulated should apply only after the third withdrawal from another bank’s platform.
In 2023, Hon. Godwin Offiono sponsored a motion condemning “excess charges and illegal deductions” by commercial banks, accusing them of fleecing customers through unauthorized deductions in breach of extant financial laws.
The House described the issue as a serious consumer rights concern that must be addressed decisively.
The House urged the Central Bank of Nigeria to immediately publish a simplified and comprehensive list of all approved bank charges to enhance transparency and consumer awareness.
The lawmakers implored the apex bank to strengthen its enforcement mechanisms and impose stiff penalties on banks found guilty of illegal or excessive deductions.
Besides, the House directed the CBN to establish an accessible and efficient redress mechanism for customers to lodge complaints and seek timely resolution of issues relating to arbitrary charges.
The Federal Competition and Consumer Protection Commission (FCCPC) and other relevant agencies were also urged to embark on a nationwide awareness campaign to educate customers on their rights and proper channels for redress.
Furthermore, the House mandated its Committee on Banking Regulations to summon the Central Bank of Nigeria and major commercial banks to appear before it and address the growing concerns over incessant and unjustified deductions from customers’ accounts.
The committee is to investigate compliance with existing banking guidelines and recommend appropriate legislative or regulatory actions to strengthen consumer protection.
The House also directed the CBN to report back within four weeks on measures taken to curb illegal deductions and enforce transparency in bank charges.
