House of Reps Launches Probe into Bank Charges

The House of Representatives has resolved to launch an investigation into what it describes as arbitrary and unexplained charges levied on customers by commercial banks across Nigeria. The decision follows growing public grievances over extra deductions from bank accounts.

The motion, moved by Hon. Mukhtar Tolani Shagaya during a plenary session, voiced concern over multiple, often duplicated fees such as SMS alerts, card maintenance, account maintenance, transfer fees and stamp duties. Shagaya maintained that many of these charges contravene the guidelines of the Central Bank of Nigeria (CBN). He warned that when such practices are unchecked, they have the potential to erode public trust in the banking system, undermine small businesses, and hamper financial inclusion efforts.

The House adopted the motion and directed the CBN to publish a simplified, clear list of all permissible bank charges, while also enforcing sanctions against any institution found to be in violation of the guidelines. Further, the House urged the apex bank to establish a robust customer complaints redress mechanism, to guarantee accountability and protect consumers.

An amendment, moved by Mr Wanjiku Eze and seconded by Mr Olamijuwonlo Alao-Akala, broadened the oversight to include both the Committee on Banking Institutions and the Committee on Banking Regulation. These committees were mandated to summon the CBN and major commercial banks to appear before them for scrutiny, with a requirement to report back to the House within four weeks.

Lawmakers emphasised that their intervention aligns with the National Assembly’s constitutional duty to safeguard citizens from exploitative financial practices and to bolster public confidence in the banking sector.

By launching this inquiry, the House intends not only to address individual cases of over-charging, but to ensure systemic accountability and transparency in banking operations across Nigeria.