Like it has happened several times before, the House of Representatives has officially summoned the Central Bank of Nigeria (CBN) and major commercial banks. This time, it’s over what it calls “arbitrary, excessive, and unexplained” charges being deducted from customers’ accounts.
In a country where many are already stretched thin by inflation, job insecurity, and rising cost of living, these extra bank fees feel like salt in the wound. And once again, students, early-career professionals, and microbusiness owners are among the hardest hit.
What Exactly Is the Reps’ Motion About?
On 15 October 2025, the House adopted a motion of urgent national importance, moved by Hon. Tolani Shagaya (Kwara), titled “Need to curb arbitrary bank charges and protect Nigerian customers.”
According to the motion, commercial banks have persistently deducted hidden or unjustified charges like:
- SMS alert fees
- Card maintenance charges
- Account maintenance fees
- Excess interbank transfer costs
- Stamp duties and other nebulous “deductions”
The House demanded that the CBN publish a simplified and comprehensive list of all approved bank charges, and enforce sanctions on banks that flout rules. This would ensure that banks don’t just deduct people’s money willy-nilly. Interbank charges, for instance, are supposed to only take effect from the third ATM transaction from another bank. Banks, however, have been doing what they like, because, apparently the rules are but a mere suggestion.
Reps are also demanding an accessible complaints redress mechanism, and have ordered the Committee on Banking Regulations to summon CBN Governor, Olayemi Cardoso, and bank executives to explain themselves.
Small Charges That Add Up to Become Transport Money
Younger Nigerians have to live with tight margins. Millions are juggling side hustles, loans, gigs, or just trying to survive the monthly bills. When a bank quietly deducts N100 here, N500 there, it chips away at your little cushion.
These deductions might seem small, but they add up — especially for low-income and vulnerable users. Especially when that hundred or 300 is the difference between being able to collect a whole N1000 from POS and not. :
These practices erode trust in an already flailing banking system. If people feel banks are taking advantage, they might revert to cash or informal services. It undercuts financial inclusion efforts too, which is something CBN is aiming for. The CBN’s goal to bring more Nigerians into formal banking is hampered when those very customers feel exploited.
It disproportionately affects students, startups, and petty traders as they deal with small amounts of money the most. Petty cash becomes crucial for them. These charges are not just a nuisance, they’re a huge problem in an already fragile economy.
Is CBN Doing Enough to Curb This?
The CBN has in past years issued guidelines on permissible bank charges. Yet, as the House notes, many banks continue to ignore them with impunity. They will continue to do it as long as they feel they can get away with it. The House’s call to summon the CBN Governor, Olayemi Cardoso, is a chance for actual accountability.
If CBN is serious about protecting consumers, it must:
- Enforce rules vigorously: Apply sanctions when banks violate fee guidelines. Regardless of the bank’s reputation or its customer base.
- Publish transparent charge schedules: Customers should easily access and understand what they’re being charged and why. Too many times, banks don’t even say why they’re deducting, you often have to go through a strenuous process to get the information you need.
- Streamline redress mechanisms: Complaints should be handled quickly and fairly.
- Educate the public: Many customers don’t even know their rights or how to challenge unfair deductions.
If CBN fails to act, its role becomes symbolic, and Nigerians will see it as complicit in banks’ profiteering.
Will This Be Different from Past Probes?
We’ve seen motions like this before. In 2023, the House expressed displeasure at illegal banking deductions. In 2016, they raised alarm over ATM withdrawal abuses.
The question now is whether this will be different?
If the past is anything to go by, words are cheap. Without enforcement and follow-through, this will be another grand statement with no teeth, and the same story repeats when customers wake up to missing funds.
Can Nigerians Even Do Anything In All This?
While the House and CBN spar, ordinary citizens aren’t powerless. Here’s what we advise:
- Stay alert: Monitor your bank statements regularly for unknown deductions. It’s always good to have a fairly accurate idea of how much should be in your bank account at any given time, so that you can spot when something is missing.
- Demand explanations: Ask the bank to justify every charge you didn’t consent to. Emails, calls, visit the banking hall if you need to.
- Use official channels: File complaints through bank customer service, CBN consumer protection units, or FCCPC. Apply pressure.
- Support transparency: Share stories, demand the published schedule of charges.
- Switch banks if needed: Move to institutions with better reputations for fair practices. Let banks know they can’t do whatever they like and still keep customers.
Collective pressure is often what forces change in Nigeria.
Conclusion
We can’t let arbitrary bank charges become normal. In a country where inflation, unemployment, and insecurity are already weighing heavily, banks shouldn’t be an additional burden.
For the youths, for those just trying to make ends meet, for students taking loans, every naira counts. The House’s move to summon CBN and banks is welcome, but it must lead to action.
If CBN clamps down, enforces rules, penalizes offenders, and protects consumers, this could mark a turning point. But if the grandstanding ends in inaction, the cycle resumes, and the most vulnerable keep paying the price. And we just keep going round and round in circles. Most importantly, banks will be emboldened, and they’d do worse.
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