Reps condemn arbitrary bank charges and summon the CBN and major banks to explain excessive deductions from customers’ accounts

Arbitrary bank charges have once again sparked outrage in Nigeria’s lower legislative chamber as the House of Representatives on Tuesday ordered an investigation into what it described as excessive and unjustified deductions from customers’ accounts by commercial banks.

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The motion, sponsored by Kwara lawmaker Tolani Shagaya, urged the Central Bank of Nigeria (CBN) to publish a simplified list of approved fees and ensure banks comply strictly with its guidelines.

Shagaya warned that continued arbitrary bank charges could erode public trust, discourage savings, and undermine the nation’s financial inclusion drive.

He told colleagues that many Nigerians are battling economic hardship while struggling with unexplained deductions ranging from card maintenance fees to interbank transfer costs and SMS alert charges.

“When citizens lose confidence in the banking system, it defeats the government’s effort to build a digital and cashless economy,” he said.

Following heated debate, the House mandated its Committee on Banking Regulations to summon the CBN and top commercial bank executives to explain the persistent issue of arbitrary bank charges despite previous warnings from regulators.

Lawmakers also directed the apex bank to enforce sanctions on any financial institution found guilty of breaching customer protection rules.

Speaker Tajudeen Abbas, who presided over the plenary, described the motion as timely, noting that the legislature would not tolerate practices that exploit citizens.

The House further called on the Federal Competition and Consumer Protection Commission to launch a public awareness campaign educating customers on their rights and avenues for redress.

The resolution marks the latest in a series of parliamentary interventions aimed at addressing recurring complaints about arbitrary bank charges in Nigeria’s financial sector.

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Lawmakers say the move is part of broader efforts to restore transparency, protect consumers, and rebuild confidence in the country’s banking system.