The House of Representatives has launched an investigation into what it described as “arbitrary, excessive, and unexplained” deductions from customers’ bank accounts by commercial banks across Nigeria.
The decision followed the adoption of a motion of urgent public importance sponsored by Tolani Shagaya, a lawmaker from Kwara State, during Tuesday’s plenary presided over by Speaker Tajudeen Abbas.
Shagaya, in his motion titled “Need to Curb Arbitrary Bank Charges and Protect Nigerian Customers,” condemned the persistent imposition of unauthorized fees by banks despite repeated warnings from the Central Bank of Nigeria (CBN).
He warned that if the trend continues, “public trust in banks will be eroded while savings will be discouraged, thus undermining the CBN’s financial inclusion campaign.”
“These incessant charges have become not only a source of frustration but also a barrier to financial inclusion,” Shagaya said. “When citizens lose confidence in the banking system, it defeats the government’s efforts to build a robust digital and cashless economy.”
The House’s resolution echoes similar concerns raised in 2016 and 2023, when lawmakers accused commercial banks of imposing excessive ATM withdrawal fees, card maintenance charges, SMS alert costs, and account maintenance deductions — all in violation of CBN regulations.
Citing previous motions, lawmakers lamented that banks continue to “fleece customers through unauthorised deductions,” worsening the financial burden on Nigerians already struggling with economic hardship.
Following the debate, the House directed the CBN to immediately publish a simplified and comprehensive list of all approved bank charges to enhance transparency and public awareness.
The apex bank was also urged to strengthen enforcement, impose sanctions on erring banks, and establish an efficient redress mechanism for customers to report and resolve issues related to illegal deductions.
Additionally, lawmakers mandated the Federal Competition and Consumer Protection Commission (FCCPC) and other relevant agencies to launch a nationwide awareness campaign educating bank customers about their rights and complaint channels.
The House further instructed its Committee on Banking Regulations to summon representatives of the CBN and major commercial banks to explain the recurring issue of unjustified deductions and recommend appropriate policy or legislative measures to protect consumers.
