Nigerian Parliament Summons Central Bank Governor Over Mounting Public Anger on Bank Charges

In a decisive move reflecting widespread public discontent, the House of Representatives has formally summoned the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, to answer for the alleged arbitrary and excessive charges levied by commercial banks on their customers. This summons represents a significant escalation in the ongoing battle for financial transparency and consumer protection in Nigeria’s banking sector.

The resolution was passed during a plenary session on Monday following the adoption of a motion moved by Hon. Muktar Shagaya, the representative for Ilorin West/Asa Federal Constituency. The motion highlighted a growing chorus of complaints from ordinary Nigerians who feel besieged by a barrage of unexplained deductions from their hard-earned money.

“Unjustified Charges Eroding Public Trust” — The Motion’s Core Argument

Hon. Shagaya’s motion painted a stark picture of the current banking experience for many Nigerians. He detailed how citizens are grappling with multiple, often cryptic, charges that appear on their bank statements, despite the existence of a CBN guide to bank charges meant to prevent such practices. This guide, known as the “Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions,” is supposed to standardize and legitimize fees, but its enforcement appears to be lacking.

“While banks are expected to provide financial services at fair costs, many customers have repeatedly experienced multiple and unjustified charges,” Shagaya stated on the floor of the House. He argued that these practices are not merely an inconvenience but a fundamental threat that undermines public confidence in the financial system, discourages financial inclusion, and places an undue burden on individuals and small businesses already navigating a challenging economic landscape.

The litany of charges identified as particularly problematic includes:

• SMS Alert Fees: Charges for notifications customers often rely on for security.
• Card Maintenance Fees: Regular deductions for the mere possession of an ATM card.
• Account Maintenance Charges: Fees for the basic service of holding an account.
• Interbank Transfer Levies: Costs associated with moving money between different banks.
• Stamp Duties: A government-mandated charge that is sometimes applied incorrectly or excessively.
• Duplicate and Unexplained Deductions: The most egregious category, where customers see the same charge multiple times or a fee with no clear justification.

House of Representatives Lays Down the Law: Key Resolutions

Following a robust debate that cut across party lines, the House unanimously adopted a series of resolutions designed to tackle the issue head-on. These resolutions signal a comprehensive approach, targeting both the regulator and the regulated institutions.

Summoning the Apex Bank

The core of the action is the summons issued to the CBN Governor, Olayemi Cardoso. He is expected to appear before the House Committee on Banking Regulations to provide a detailed explanation on what the CBN is doing to curb these excesses. Lawmakers will demand answers on the effectiveness of the bank’s monitoring and enforcement mechanisms.

Bank CEOs in the Hot Seat

Beyond the regulator, the chief executives of major commercial banks are also to be invited to an investigative hearing. This move places direct accountability on the institutions implementing these charges, forcing them to justify their pricing models directly to the people’s representatives.

Directives to the Central Bank of Nigeria

The House issued specific directives to the CBN, mandating it to take concrete steps:

• Publish a Simplified List of Charges: The CBN is to create and widely disseminate a comprehensive, clear, and easy-to-understand list of all approved bank charges. This aims to empower customers with knowledge, making it harder for banks to slip in unauthorized fees.
• Enforce Strict Penalties: The House directed the CBN to impose significant sanctions on banks found to be in violation of the approved tariff guide. The perception of impunity has been a major driver of public frustration.
• Establish a Redress Mechanism: A key resolution calls for the setup of a robust, transparent, and efficient customer complaint and redress system. Many customers report that attempting to dispute a charge is a labyrinthine process that often leads nowhere.

Role of Consumer Protection Agencies

Recognizing that this is also a consumer rights issue, the House has mandated the Federal Competition and Consumer Protection Commission (FCCPC) and other relevant agencies to launch a nationwide awareness campaign. This campaign would educate bank customers on their rights, the approved charges, and the steps to take when they encounter unfair deductions.

Strict Timeline for Action

To ensure this issue does not get buried in bureaucratic delays, the House Committee on Banking Regulations was given a strict deadline of four weeks to report back with its findings and concrete recommendations for legislative action.

The Fuel Behind the Fire: A Background of Growing Public Frustration

The House’s action did not occur in a vacuum. It is a direct response to a groundswell of anger that has been building for months, primarily voiced on social media platforms, radio call-in shows, and in everyday conversations. The common grievances that have fueled this outcry include:

• Delayed Failed Transaction Refunds: When electronic transactions fail, customers often wait for days or even weeks to get their money back, despite a CBN policy mandating automatic refunds within 24 to 48 hours.
• Hidden Charges for Digital Services: As banking moves increasingly online, customers are encountering new and often poorly explained fees for USSD transfers, mobile app transactions, and other digital services.
• A Culture of Opacity: Many customers report that when they seek explanations for certain charges, bank staff are either unable to provide a clear answer or give conflicting information.

This environment has led to a significant trust deficit. While the CBN has periodically issued guidelines, the consistent feedback from the public is that monitoring and enforcement have been lax, allowing banks to operate with a sense of impunity.

Consumer Protection Moves to the Forefront

The legislative intervention dovetails with actions from other government bodies. The Federal Competition and Consumer Protection Commission (FCCPC) has already publicly committed to enforcing the CBN’s 48-hour refund policy for failed transactions. The agency’s CEO, Babatunde Irukera, has previously hinted at setting up a dedicated compliance team to monitor bank violations and respond more swiftly to consumer complaints.

The summoning of the CBN Governor by the House of Representatives significantly raises the stakes. It transforms customer complaints from a regulatory concern into a full-blown political and parliamentary issue. This multi-pronged pressure from both the legislature and consumer protection agencies is expected to create a powerful impetus for change, potentially leading to stricter enforcement, greater transparency, and long-awaited relief for millions of Nigerian bank customers.

For the average Nigerian, this parliamentary action is a beacon of hope—a sign that their persistent complaints about mysterious bank charges are finally being heard at the highest levels of governance. The coming weeks, as the CBN Governor and bank CEOs prepare their responses, will be critical in determining whether this intervention will translate into tangible reform or become another forgotten resolution.

Full credit to the original publisher: Toscad News – https://toscadnews.com/14/10/2025/reps-summons-cbn-governor-over-alleged-excessive-bank-charges/