The House of Representatives has summoned the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, to explain claims of arbitrary and excessive fees being charged by commercial banks to their customers across Nigeria.
This decision was made following a motion presented by Hon. Muktar Shagaya, who represents the Ilorin West/Asa Federal Constituency, during the House’s plenary session.
In his address, Shagaya raised the alarm over the growing number of complaints from Nigerians regarding continuous and unclear deductions from their bank accounts, even though there are existing CBN regulations meant to control such bank charges.
He pointed out that citizens were being burdened with multiple charges, including those for SMS alerts, card and account maintenance, interbank transfers, stamp duties, and other fees which are either charged more than once or lack clear justification.
Shagaya stated that, “although banks are supposed to offer financial services at reasonable costs, many customers consistently face repeated and unjustified deductions in clear violation of CBN’s rules intended to prevent such practices.”
He further cautioned that ongoing exploitation of customers by banks could lead to a breakdown in public confidence in the banking system, hinder financial inclusion, and jeopardise the CBN’s broader objective of increasing access to financial services.
The House further called on the CBN to release a detailed and user-friendly list of all officially approved bank charges and to strictly enforce sanctions against banks that violate the rules.
The House also urged the CBN to set up a transparent, accessible, and efficient mechanism for addressing customer complaints related to illegal or excessive charges.
Additionally, the lawmakers further directed the Federal Competition and Consumer Protection Commission (FCCPC) and other relevant bodies to launch a nationwide public awareness initiative to educate consumers on their rights regarding bank fees.
However, they instructed its Committee on Banking Regulations to summon the CBN Governor and heads of major commercial banks for an investigative hearing and to present their findings within four weeks to enable further legislative measures.