The House of Representatives has launched a probe into alleged arbitrary deductions by Nigerian banks.
Lawmakers directed the CBN to publish approved bank charges and sanction violators to protect customers.
The House of Representatives has ordered an investigation into what it described as arbitrary and excessive deductions from the accounts of bank customers by deposit money banks across the country.
The decision followed the adoption of a motion of urgent public importance moved by Hon. Tolani Shagaya from Kwara State during Tuesday’s plenary session presided over by Speaker Tajudeen Abbas.
Shagaya, in his motion titled “Need to Curb Arbitrary Bank Charges and Protect Nigerian Customers,” said several banks continue to impose illegal and unexplained fees on customers despite repeated warnings from the Central Bank of Nigeria (CBN).
He warned that such practices threaten public confidence in the banking system and discourage savings, which are critical to Nigeria’s financial inclusion drive.
“These incessant charges have become a major source of frustration to customers and a barrier to achieving a cashless economy,” Shagaya said, adding that many Nigerians already face economic hardship and should not be further burdened by hidden fees.
The House recalled that similar concerns had been raised in 2016 and 2023 when lawmakers accused some banks of abusing the N65 Automated Teller Machine withdrawal charge and making unauthorized deductions in violation of banking regulations.
The lawmakers cited persistent issues such as excessive SMS alert fees, card and account maintenance charges, and interbank transfer costs as examples of deductions that lack proper justification.
Following extensive deliberation, the House directed the CBN to immediately publish a simplified list of all approved bank charges to improve transparency and help customers understand what they are paying for.
The apex bank was also urged to strengthen enforcement and sanction any commercial bank that violates its directives on charges.
In addition, lawmakers asked the CBN to create an accessible complaint and redress platform where customers can report irregular deductions and get timely resolution.
The House also tasked the Federal Competition and Consumer Protection Commission and other relevant agencies to embark on a nationwide awareness campaign to educate Nigerians on their banking rights and how to seek redress.
To ensure compliance, the Committee on Banking Regulations was directed to summon representatives of the CBN and major commercial banks to appear before it. The committee will monitor adherence to existing guidelines and propose further legislative actions to protect consumers.
The House said the move was necessary to restore confidence in Nigeria’s financial institutions and ensure fairness in customer transactions.
