The House of Representatives has resolved to investigate the growing concerns over incessant and arbitrary charges imposed on bank customers by commercial banks across the country.
The resolution followed a motion moved by Tolani Shagaya (APC, Kwara) during Tuesday’s plenary, who drew the attention of lawmakers to the “rising wave of exploitative deductions” experienced by Nigerian account holders.
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In his motion, Mr Shagaya noted that complaints from bank customers have become more frequent, with several Nigerians expressing frustration over unexplained, duplicated, or excessive deductions by their banks.
He observed that while banks are authorised to provide financial services at fair and transparent costs, most customers now face multiple charges, including SMS alert fees, card and account maintenance fees, inter-bank transfer charges, stamp duties, and other unexplained debits.
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“These deductions are either duplicated or unaccounted for,” he said.
Mr Shagaya lamented that despite the Central Bank of Nigeria’s (CBN) tariff guidelines designed to regulate bank charges, most financial institutions continue to flout the rules with impunity.
The lawmaker expressed worry that the persistent deductions have worsened the financial strain on Nigerians, especially low-income earners, students, small business owners, and vulnerable groups, who already struggle to cope with the rising cost of living.
He warned that if left unchecked, the trend would continue to erode public trust in the financial system and undermine the CBN’s financial inclusion goals, which aim to bring more citizens into the formal banking sector.
“If this trend is not urgently investigated, it will continue to erode public opinion,” Mr Shagaya cautioned.
Resolutions
Following the lead debate, the House resolved to take concrete steps to protect Nigerian consumers from exploitative banking practices.
The lawmakers urged the CBN to publish a comprehensive and simplified list of all approved bank charges to enhance transparency and public understanding.
They also urged CBN to strictly enforce penalties against any bank found to be in violation of approved tariffs and establish an accessible redress mechanism through which customers can lodge complaints about illegal or excessive charges.
The House further called on the Federal Competition and Consumer Protection Commission (FCCPC) and other relevant agencies to launch a nationwide awareness campaign to educate Nigerians, especially small businesses and rural customers, on their rights regarding bank charges and how to seek redress.
To ensure accountability, the House mandated its Committee on Banking Regulations to urgently invite the CBN and major commercial banks for a public hearing to address the allegations of arbitrary and incessant deductions.
The committee is to investigate the growing pattern of exploitative bank charges and report back to the House within four weeks for further legislative action.
Longstanding issue of bank fees
Over the years, Nigerians have complained about excessive bank charges, with some financial experts noting that the aggregate cost of maintaining a simple account in Nigeria is among the highest in Africa.
Despite several interventions and circulars by the CBN to standardise charges, many customers continue to experience unexplained deductions, often attributed to system upgrades or “regulatory fees.”
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Consumer protection advocates have repeatedly called for stronger enforcement mechanisms, arguing that without clear penalties, banks would continue to exploit loopholes at the expense of millions of customers.
With this new legislative move, the House aims to force transparency and fairness in the financial sector and compel the CBN to ensure that banking operations in Nigeria prioritise customer protection over profit motives.
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