Reps Probe Commercial Banks Over Arbitrary Charges

House of Representatives has resolved to investigate the growing concerns over arbitrary and incessant charges by commercial banks in the country.

To this end, the House urged the Central Bank of Nigeria (CBN) to publish a comprehensive and simplified list of approved bank charges and ensure proper enforcement of penalties against banks found to be in violation.

It also urged the CBN to establish an accessible and efficient complaints redress mechanism for customers affected by illegal or excessive charges.

This followed the adoption of a motion of urgent national importance moved by Hon. Muktar Tolani Shagaya (APC, Kwara).

Moving the motion, the lawmaker noted that there had been growing complaints from Nigerian bank customers over incessant, arbitrary, and unexplained charges being deducted from their bank accounts by commercial banks operating in Nigeria.

He said while banks are expected to provide financial services at fair costs, many Nigerian customers have repeatedly experienced multiple charges such as SMS alerts, card maintenance fees, account maintenance charges, interbank transfer fees, stamp duties and unexplained debts, some of which are either duplicated or unaccounted for.

According to Shagaya, these charges persist despite the CBN issuing guidelines to regulate bank tariffs, most of which are being flouted with impunity by the banks.

He expressed worry that “these exploitative practices disproportionately affect businesses, low-income earners, small businesses, students, and vulnerable groups who struggle to keep their finances in check amid the harsh economic realities in the country.

“If this trend is not urgently investigated and addressed, it 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 House mandated the committees on Banking Regulations and Institutions to urgently invite the CBN and major commercial banks operating in Nigeria over the matter.