The House of Representatives has resolved to investigate the practice of excess charges and illegal deductions by commercial banks in Nigeria.

The resolution was reached on Tuesday following a motion moved by Godwin Offiono during plenary.

In his motion, Offiono accused commercial banks of causing hardship to customers through excess charges and illegal deductions, adding that the banks also charge outrageous interest rates on loans.

He noted that the banks violate the Central Bank /Chartered Institute of Bankers of Nigeria (CIBN) guideline with the arbitrary charges.

“The creation of charges not recognized in the Central Bank guide to Bank charges is a common practice by Commercial Banks,” he said.

He also raised concerns about “the wrong application of maintenance fees, banks overcharging maintenance fees, the inclusion of transactions exempted from maintenance charge, loan liquidation and bank-induced transactions amongst others.”

Therefore, the lawmakers resolved to mandate the Committee on Banking and Currency (when constituted) to investigate the issue of excess charges and illegal deductions by commercial banks in Nigeria and report back within four (4) weeks for further action.

The House also mandated the Committee on Legislative Compliance (when constituted) to ensure implementation.