ABUJA, Nigeria – The House of Representatives has expressed concern over excessive charges and commercial banks’ unauthorised deductions, which are violations of existing laws.
On Tuesday, July 11, 2023, at a plenary session presided over by Speaker Tajudeen Abass, the House adopted a motion put forth by Representative Godwin Offiono.
This motion mandates the House’s Committee on Banking and Currency to initiate a probe into these excessive charges and report back within one month.
Additionally, the House Committee on Legislative Compliance has been charged with ensuring the findings’ implementation.
Offiono brought the issue to light, claiming to have information indicating some banks and financial institutions are engaged in unethical practices that take advantage of customers through excessive charges and unauthorised deductions.
The lawmaker detailed the customer dissatisfaction with commercial banks, citing an array of charges that banks impose on their customers.
These include Stamp Duty and Value Added Tax, VAT, on all VATable transactions.
Further charges mentioned by Offiono include interest on loans and overdrafts at rates higher than those agreed upon in the offer letter.
The lawmaker also highlighted the unjustifiable increase in interest rates and other fees without the necessary notification and customer consent, a violation of Central Bank Chartered 4 Institute of Bankers of Nigeria, CIBN, guidelines.
“It’s unfortunate that the creation of charges not recognized in the Central Bank Guide to Bank charges has now become a common practice by Commercial Banks,” Offiono said, calling out practices such as wrongful application of maintenance fees, bank overcharging maintenance fees, and including transactions exempted from maintenance charges.
The lawmaker further criticized bank-induced transactions and loan liquidations as part of the myriad infractions.
The upcoming probe signifies a critical step in holding financial institutions accountable for their fee structures and ensuring customer protection in banking services.
The decision will be closely watched by banking customers and the wider financial sector alike.
