By Paul Effiong, Abuja
House of Representatives has mandated its Committee on Banking Regulations to urgently summon the Central Bank of Nigeria, CBN, and major commercial banks to appear before it and explain the rationale behind the increasing cases of arbitrary and incessant bank charges.
This followed the adoption of a motion moved during plenary yesterday by Muktar Shagaya.
Shagaya represents Asa/Ilorin West Federal Constituency of Kwara State.
In his lead debate, the lawmaker expressed deep concern over the exploitative deductions and lack of transparency in the banking sector, noting that millions of Nigerians have suffered undue hardship because of repeated unexplained hidden charges that often go unchallenged by most bank customers.
The lawmaker lamented the illegality against customers, adding that banks consistently declare huge profits every year, while their customers are left frustrated by numerous deductions ranging from stamp duties, SMS alerts, account maintenance fees, transfer charges and other illegal levies.
According to the lawmaker, “the current trend does not only erode public trust, but also undermines the country’s drive toward a cashless economy”.
He equally maintained that despite the CBN’s issuance of guidelines on approved bank charges, major financial institutions, mostly commercial banks have continued to flout the regulations with impunity, while exploiting the ignorance of their customers.
Shagaya argued that such practices amount to economic sabotage which requires urgent intervention to protect the interests of the whole banking public and Nigerians at large.
While adopting the motion, lawmakers urgently called on the CBN to publish a comprehensive and simplified list of all approved bank charges and ensure immediate and strict enforcement of penalties against erring financial institutions.
Consequently, the lawmakers emphasized the need for transparency and accountability in the banking sector, maintaining that the current situation does not go down well with customers, as it is unsustainable.
They tasked the CBN on the establishment of an accessible and efficient complaints mechanism for the purpose of addressing customers complaint with a view to tackle them.
According to the lawmakers, CBN must guarantee prompt resolution and restitution for affected customers without unnecessary bureaucracy.
During the deliberations, several lawmakers supported Shagaya’s motion, even as some cited personal and constituents experiences of arbitrary deductions.
The House thereafter called for closer monitoring of commercial banks operations in order to ensure strict compliance with consumer protection standards and financial fairness.
Consequently, it urged the Federal Competition and Consumer Protection Commission, FCCPC, among other relevant agencies to collaborate with civil society groups to launch a nationwide awareness campaign to educate customers on their rights regarding bank charges.
They maintained that such sensitisation would empower Nigerians to challenge unlawful deductions and demand transparency and accountability in all transactions.
Shagaya, who had commended the House for its unanimous support, informed that his motion was not only timely, but essential in restoring fairness and confidence in Nigeria’s financial institution and sector.
He, however reaffirmed readiness to ensure that banks operate within the legal legislative framework set by regulatory authorities.
The Committee on Banking Regulations was mandated to immediately commence engagement with the CBN and other commercial banks, as well as report back to the House within four weeks for further legislative action.
