Reps summon CBN, Banks over arbitrary account deductions
By Seun Ibiyemi
The House of Representatives has summoned the Central Bank of Nigeria (CBN) and major commercial banks to provide explanations for the escalating cases of arbitrary and unexplained deductions from customers’ accounts nationwide.
The resolution followed the adoption of a motion of urgent national importance moved by Hon. Tolani Shagaya (APC, Kwara) during plenary on Tuesday.
In presenting the motion, Hon. Shagaya voiced deep concern over what he termed "incessant, arbitrary, and unexplained charges" imposed by banks, despite the existence of CBN guidelines regulating financial service fees.
He lamented that numerous bank customers are burdened by multiple deductions including for SMS alert fees, card and account maintenance charges, transfer fees, stamp duties, and other debits some of which are reportedly duplicated or unjustified.
Shagaya argued that "These exploitative practices disproportionately affect businesses, low-income earners, students, and vulnerable groups already struggling amid harsh economic realities," adding that the issue, if unaddressed, would continue to erode public trust and undermine financial inclusion efforts.
Following deliberations, the House directed the CBN to publish a simplified list of all approved bank charges and enforce strict sanctions on commercial banks found to be in breach of the guidelines.
Lawmakers also urged the apex bank to establish a more accessible and efficient complaints redress mechanism for customers impacted by illegal or excessive deductions.
Furthermore, the Federal Competition and Consumer Protection Commission (FCCPC) and other relevant agencies were mandated to launch nationwide consumer education campaigns to inform Nigerians about their rights regarding bank fees.
The Committees on Banking Regulations and Banking Institutions have been tasked with conducting a comprehensive investigation into the matter and reporting back to the House within four weeks for further legislative action.