Reps summon CBN, banks over unexplained deductions from customers’ accounts

The House of Representatives has summoned the Central Bank of Nigeria (CBN) and major commercial banks to appear before it and explain the growing cases of arbitrary and unexplained deductions from customers’ accounts across the country.

The decision followed a motion moved by Hon. Tolani Shagaya during Tuesday’s plenary session.

Shagaya expressed concern over the “incessant, arbitrary, and unexplained charges” being imposed by banks despite clear CBN guidelines meant to protect consumers.

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He noted that while banks are expected to offer financial services at fair and transparent costs, customers continue to experience multiple deductions such as SMS alert fees, card and account maintenance charges, transfer fees, stamp duties, and other unexplained debits many of which appear duplicated or unjustified.

He said: “These exploitative practices disproportionately affect businesses, low-income earners, students, and vulnerable groups already struggling amid harsh economic realities. If not urgently addressed, they will further erode public trust in the banking system and undermine financial inclusion efforts.”

“These exploitative practices disproportionately affect businesses, low-income earners, students, and vulnerable groups who are already struggling amid harsh economic realities.

“If not urgently investigated and addressed, they 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 directed the CBN to publish a simplified list of approved bank charges and enforce strict penalties on banks violating the guidelines.

Lawmakers further urged the apex bank to establish an accessible and efficient complaints redress mechanism for customers affected by illegal or excessive charges.

The House also mandated the Federal Competition and Consumer Protection Commission, FCCPC, and other relevant agencies to launch nationwide consumer education campaigns to enlighten Nigerians about their rights regarding bank fees.

The Committees on Banking Regulations and Banking Institutions were tasked with conducting a comprehensive investigation and reporting back within four weeks for further legislative action.

(Vanguard)