The Nigerian Senate on Tuesday summoned the governor of the Central Bank of Nigeria, Godwin Emefieli, Managing Directors of Banks and Bankers Committee among others over increasing cases of illegal deductions by Deposit Money Banks. The issue was brought to the floor of the senate by Senator Magnus Abe in a motion titled “Urgent need to investigate, regularise and amend conflicting, vague and unjust remedies which the Central Bank of Nigeria offers to victims of excess and arbitrary bank charges and illegal deductions by commercial banks.”
While presenting the motion, Abe said “the Senate notes that over the years, commercial banks in Nigeria have indulged in sharp practices of overcharging customers/depositors arbitrarily and excessively, contrary to tariff stipulations, credit and monetary guidelines issued from time to time by the Central Bank of Nigeria.”
Speaking, the Senate President commended Abe on the Motion and stressed that every kobo was important to bank customers.
After extensive deliberation, the Senate mandated the Committee on Banking, Insurance and other Financial Institutions, led by Senator Rafiu Adebayo Ibrahim (APC, Kwara South) to organise a public hearing for the purpose of harmonising and amending laws, rules and guidelines that do not adequately protect the customers and give them substantial remedy when overcharged.
It also urged the government to proactively protect customer’s rights, eradicate short payments of interest and end the culture of excess and arbitrary bank charges.
It maintained that if all the necessary measures are taken, the nation's banking sector would be repositioned to meet international best practices.
