House of Reps probes excessive charges by banks

House of Representatives

House of Representatives

The House of Representatives is investigating alleged excessive charges on transactions by commercial banks in Nigeria.

In a resolution it passed in Abuja on Wednesday, the House mandated its Committee on Banking and Currency to conclude the investigation within four weeks and report back for further legislative action.

A lawmaker from Edo State, Rep. Sergius Ose Ogun, moved a motion that led to the resolution during the plenary of the House presided over by the Speaker, Rep. Femi Gbajabiamila.

The resolution secured a unanimous voice vote.

Part of Ogun’s motion reads, “The House notes that Section 88 (1) and (2) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) empowers the National Assembly to conduct investigations into the activities of any authority executing or administering laws made by the National Assembly.

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

“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.

“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.

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

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