Reps summon CBN, banks over arbitrary charges
The House of Representatives has resolved to investigate the growing complaints by Nigerians over arbitrary and unexplained deductions by commercial banks across the country. The resolution followed a motion by Hon. Tolani Shagaya (APC, Kwara), who raised concerns about what he described as “incessant, arbitrary, and unexplained charges” being deducted from customers’ accounts despite existing […]
The House of Representatives has resolved to investigate the growing complaints by Nigerians over arbitrary and unexplained deductions by commercial banks across the country.
The resolution followed a motion by Hon. Tolani Shagaya (APC, Kwara), who raised concerns about what he described as “incessant, arbitrary, and unexplained charges” being deducted from customers’ accounts despite existing Central Bank of Nigeria (CBN) regulations.
However, Daily Trust reports that a similar motion was moved on October 24, 2024, by another lawmaker.
Presenting his motion during plenary on Tuesday, Shagaya noted that while banks are expected to provide essential financial services at fair costs, many Nigerians have continued to face multiple deductions such as SMS alert fees, card maintenance fees, account maintenance charges, interbank transfer fees, stamp duties, and other unexplained debits, many of which he said, are duplicated or unaccounted for.
He lamented that such practices persist even though the CBN has issued clear guidelines regulating bank tariffs, most of which are being flouted with impunity by financial institutions.
“These exploitative practices disproportionately affect businesses, low-income earners, students, and vulnerable groups who are already struggling amid harsh economic realities.
“If not urgently investigated and addressed, they will continue to erode public trust in the banking system, increase financial exclusion, and undermine the CBN’s financial inclusion objectives,” he said.
Adopting the motion, the House urged the CBN to publish a comprehensive and simplified list of approved bank charges and ensure strict enforcement of penalties against erring banks.
The lawmakers also called on the apex bank to establish an accessible and efficient complaints redress mechanism for customers affected by illegal or excessive charges.
In addition, the House urged the Federal Competition and Consumer Protection Commission (FCCPC) and other relevant agencies to embark on nationwide consumer education campaigns to enlighten customers about their rights regarding bank fees and charges.
The motion further directed the House Committee on Banking Regulations and Banking Institutions to invite the CBN and major commercial banks to appear before it and explain the recurring cases of arbitrary deductions.
The committees were also mandated to report back to the House within four weeks for further legislative action.
Same motion in 1 year
Daily Trust recalled that the House of Representatives had last year mandated its Committees on Banking Regulations, Banking and other Ancillary Institutions, and Digital and Electronic Banking to investigate the various charges and fees imposed by commercial banks on their customers.
The House mandated the committees to report back within four weeks for further legislative action following a motion by Rep. Ganiyu Adele Ayuba.
Ayuba had said that the Central Bank of Nigeria (CBN), through its instrument titled “The guide to charges by banks, other financial and non-bank financial institutions”, revised from time to time, regulates the types and amounts of charges Commercial Banks can impose on their customers’ accounts;
The lawmaker added that the CBN’s Guide, revised in 2020, permits commercial banks to charge customers repetitive fees such as Account Maintenance Fee, ATM Card Maintenance Fee, Electronic Transfer Fee, and SMS Alert Fee.
Rep. Ayuba said the CBN’s cashless policy has compelled customers to conduct transactions electronically, thereby increasing commercial banks’ charges/fees, which in turn affects customers.
The lawmaker said, “Petty traders whose profit may be less than fifty naira and pay through electronic means lose such a small profit due to bank charges or fees.
“While commercial banks are making billions in the name of unauthorized charges and fees from customers’ accounts, customers, especially petty traders, are unknowingly losing their profits due to these bank charges.”
Daily Trust reports that many Nigerians have expressed concerns over arbitrary charges, as highlighted below.
ATM and card costs
In response to rising costs and the need to improve the efficiency of Automated Teller Machine (ATM) services, the Central Bank of Nigeria (CBN), on 11 February 2025, introduced new charges for both “on-site” and “off-site” withdrawals.
Nigerians now pay higher fees on cash withdrawals. On-site ATM withdrawals—those made at a machine owned by a bank but outside its branch premises—attract N100 per N20,000 withdrawn.
Off-site ATM withdrawals, such as those at shopping centres, airports, or standalone cash points, will incur a N100 fee plus a surcharge of up to N500 per N20,000 withdrawal, bringing the total possible charge to N600 for every N20,000.
Withdrawals from an account holder’s own bank’s ATMs remain free.
Similarly, debit and credit cards have annual maintenance fees. Savings account-linked debit cards incur N50 per quarter, while issuing, replacing, or renewing credit cards attracts a N1,000 charge.
In addition, customers who use hardware tokens for internet banking—a security device often required for high-value transfers—must pay up to N2,500 for the device.
Cybersecurity levy
The CBN initially announced a 0.5 per cent cybersecurity levy on all electronic transactions. The decision sparked a widespread public outcry, prompting the House of Representatives to ask the central bank to suspend its implementation.
In response to the backlash, the CBN announced that the levy was 0.005 per cent on all electronic transactions processed by banks and other financial institutions, which is in line with Cybercrime (Prohibition, Prevention, etc.) Act, 2015.
Under the revised structure, a N10,000 transfer now attracts a cybersecurity levy of N0.50. The charge is N5 for a N100,000 transfer, while transactions exceeding N1 million incur a N50 fee. Although the reduction lessens the burden, it remains one of many fees Nigerians pay in their daily financial transactions.
Electronic fund transfers also come at a cost. Transactions below N5,000 attract a N10 charge, while those between N5,001 and N50,000 incur a N25 fee. Transfers above N50,000 cost N50 per transaction. Though seemingly insignificant in isolation, the frequency of transactions—whether for bills, remittances, or simple transfers—results in a steady erosion of disposable income.
This is in addition to N3.75 in VAT on the service charge, and N6 for SMS notifications.
Additionally, Banks charge N50 quarterly as a card maintenance fee.