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Reps to probe excessive charges imposed by banks on transactions

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The House of Representatives on Wednesday unveiled plans to investigate the activities of all the Deposit Money Banks operating across the country with a view to check excessive charges imposed on customers.

The resolution was passed sequel to the adoption of a motion sponsored by Hon. Sergius Ogun.

In his lead debate, Hon. Ogun observed that Section 88(1 and 2) of the 1999 Constitution (as amended) empowered the National Assembly to conduct investigations into the activities of any authority executing or administering laws made by the National Assembly.

“The House is aware that most of the Deposit Money Banks in Nigeria impose excessive and non-statutory charges on varying bank transactions carried out by customers.

“The House is also aware that in January 2020, in the bid to, among other things, stop the indiscriminate imposition of charges by Deposit Money Banks, the Central Bank of Nigeria (CBN) issued a Guide to Charges by Banks, other Financial Institutions and Non-Bank Financial Institutions, stating the approved bank charges to be imposed by Deposit Money Banks.

“The House is concerned that despite the Guide issued by the CBN, some Banks still deduct outrageous amounts of money from their customers in the guise of bank charges with different descriptions.

“The House is worried that in most cases, the deductions are already covered by the CBN approved monthly Account Maintenance Fee (AMF), thus amounting to double deduction.

In his remarks, Hon. Sada Soli observed that the Central Bank of Nigeria’s policy on financial inclusiveness led to money deposit banks charging customers for both deposits and withdrawals, including other changes which were burdensome on bank customers.

To this end, the House mandated its Committee on Banking and Currency to investigate the excessive charges on bank transactions by Deposit Money Banks in Nigeria and report back within four weeks for further legislative action.

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