The House of Representatives has resolved to probe “arbitrary, excessive, and unexplained” charges from customers’ accounts by deposit money banks operating in the country.
The resolution followed the adoption of a motion of urgent public importance sponsored by Rep Tolani Shagaya at a plenary session presided over by Speaker Tajudeen Abbas, on Tuesday.
The House also mandated its Committee on Banking Regulations to summon representatives of the CBN and major commercial banks to appear before it to “address the growing concerns over incessant and unjustified deductions from customers’ accounts”.
The committee is expected to monitor compliance with existing banking guidelines and recommend appropriate legislative or regulatory actions to strengthen consumer protection.
The motion, titled, ‘Need to curb arbitrary bank charges and protect Nigerian customers,’ sought to draw the attention of the house to the many charges levied on Nigerian bank customers despite repeated warnings by the Central Bank of Nigeria (CBN).
The House has at different times, deliberated issues of arbitrary deductions and charges from customer’s accounts by banks.
Speaking on the motion on Tuesday, Shagaya noted that if the practice continue, “Public trust in banks will be eroded while savings will be discouraged, thus undermining the CBN’s financial inclusion campaign.”
According to him, “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.”
Following the adoption of the motion, the House urged the CBN to “immediately publish a simplified and comprehensive list of all approved bank charges to enhance transparency and consumer awareness.”
It also charged the apex bank to be tough on compliance and enforce sanctions when its directives are breached by commercial banks.
The House also 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 lawmakers urged the Federal Competition and Consumer Protection Commission and other relevant agencies to commence “a nationwide awareness campaign to educate customers on their rights and the proper channels for redress.”
