In a significant move aimed at addressing growing public frustration with Nigeria's banking sector, the House of Representatives has issued a summons to the Central Bank of Nigeria (CBN) and leading commercial banks across the country. The directive requires these institutions to appear before lawmakers and provide detailed explanations for the surge in arbitrary and unexplained deductions from customers' accounts. This development stems from a plenary session held on Tuesday, where the lower chamber of the National Assembly adopted a motion highlighting the urgency of the issue, reflecting broader concerns about financial transparency and consumer protection in Africa's largest economy.
The resolution was triggered by a motion of urgent national importance sponsored by Hon. Tolani Shagaya, a member representing the All Progressives Congress (APC) from Kwara State. During his presentation, Shagaya painted a grim picture of the banking landscape, decrying what he described as "incessant, arbitrary, and unexplained charges" levied on unsuspecting customers. He emphasized that these practices persist despite clear guidelines issued by the CBN, which are meant to regulate fees in the financial services industry. Established under the CBN's Guide to Charges by Banks, Other Financial Institutions, and Non-Bank Financial Institutions, these rules are intended to standardize and cap various fees to prevent exploitation. However, Shagaya argued that banks have been flouting these regulations with impunity, leading to a cascade of unauthorized debits that drain accounts without justification.
Delving deeper into the specifics, Shagaya highlighted a litany of charges that have become commonplace grievances for millions of Nigerians. Customers are routinely hit with deductions for SMS alert services, which notify users of transactions; card maintenance fees for debit or credit cards; account maintenance charges that supposedly cover operational costs; transfer fees for moving funds between accounts or institutions; and stamp duties imposed on certain transactions as per government fiscal policies. What exacerbates the situation, according to the lawmaker, are instances of duplicated charges—where the same fee is debited multiple times—or entirely unjustified debits that appear mysteriously on statements. For example, some customers report being charged for services they never activated or for transactions that never occurred, often discovered only after reviewing monthly statements or receiving alerts.
Shagaya's motion underscored the human impact of these practices, noting that they "disproportionately affect businesses, low-income earners, students, and vulnerable groups already struggling amid harsh economic realities." In a nation grappling with inflation rates hovering above 30 percent, currency devaluation, and widespread unemployment, such deductions represent more than mere inconveniences—they erode hard-earned savings and exacerbate poverty. Small business owners, who rely on tight cash flows, find their operational funds siphoned off unexpectedly, potentially leading to failed payments or stalled growth. Students and low-wage workers, often operating on shoestring budgets, face amplified financial stress, with some forced to forgo essentials like food or education fees. Vulnerable groups, including the elderly and rural dwellers with limited access to digital banking tools, are particularly hit hard, as they may not even notice or understand these deductions until it's too late.
The lawmaker warned that if left unchecked, these exploitative tactics would further erode public trust in the banking system—a critical pillar of Nigeria's economy, which boasts over 200 million people and a burgeoning fintech sector. Financial inclusion, a key policy goal promoted by the CBN through initiatives like the cashless policy and agent banking networks, risks being undermined. With millions still unbanked or underbanked, arbitrary charges could deter people from engaging with formal financial services, pushing them toward informal alternatives like cash hoarding or unregulated lenders, which carry their own risks of fraud and insecurity.
The House's response was swift and multifaceted, demonstrating a commitment to accountability and reform. Lawmakers unanimously adopted the motion after robust deliberations, during which several members shared anecdotes from their constituencies about similar experiences. The chamber directed the CBN to immediately publish a simplified, user-friendly list of all approved bank charges. This document, to be disseminated widely through media, bank branches, and online platforms, would empower customers to verify legitimate fees against illicit ones, fostering transparency. Additionally, the apex bank was instructed to enforce strict sanctions on errant commercial banks, which could include fines, suspensions of operations, or even license revocations in extreme cases. Past instances of CBN interventions, such as the 2020 sanctions on banks for forex infractions, serve as precedents, but enforcement has often been criticized as lax.
To address grievance resolution, the House urged the CBN to overhaul its complaints mechanism, making it more accessible and efficient. Currently, customers can lodge complaints via the CBN's consumer protection portal or helplines, but response times are often protracted, and resolutions infrequent. Proposals include integrating AI-driven chatbots, toll-free lines in local languages, and partnerships with telecom providers for seamless reporting. This would align with global best practices seen in countries like the UK, where the Financial Ombudsman Service provides swift redress.
Broadening the scope, lawmakers mandated the Federal Competition and Consumer Protection Commission (FCCPC) and other agencies, such as the Nigerian Communications Commission (NCC) for SMS-related issues, to roll out nationwide consumer education campaigns. These initiatives would inform Nigerians about their rights under the FCCPC Act and CBN guidelines, covering topics like how to spot unauthorized charges, steps to dispute them, and the role of class-action lawsuits. Campaigns could leverage radio jingles in pidgin English, social media influencers, community town halls, and school programs to reach urban and rural audiences alike. Education is pivotal, as surveys by bodies like the Enhancing Financial Innovation and Access (EFInA) reveal that over 60 percent of Nigerians lack basic financial literacy, making them susceptible to exploitation.
Oversight responsibilities were assigned to the House Committees on Banking Regulations and Banking Institutions, which must conduct a thorough investigation. This probe will involve public hearings where bank CEOs, CBN officials, and affected customers testify; forensic audits of transaction logs; and reviews of compliance reports. The committees are required to report back within four weeks, paving the way for potential legislative amendments, such as stiffer penalties in the Banks and Other Financial Institutions Act (BOFIA) or new consumer protection bills.
This summons comes at a time when Nigeria's banking sector is under scrutiny for broader issues, including cybersecurity breaches and naira scarcity remnants from the 2023 cash redesign policy. Commercial banks like Zenith, GTBank, Access, and FirstBank—often implicated in complaints—now face heightened pressure to clean up their acts. Consumer advocacy groups, such as the Consumer Protection Council, have applauded the move, calling it a victory for accountability.
Ultimately, this legislative intervention signals a turning point in safeguarding financial rights. By compelling explanations and reforms, the House aims to restore confidence, promote equitable banking, and ensure that economic hardships are not compounded by institutional greed. As the investigation unfolds, Nigerians await tangible outcomes that could reshape the banker-customer relationship for the better, fostering a more inclusive and trustworthy financial ecosystem in a nation striving for economic recovery.
