Bill To Regulate Arbitrary Bank Charges Passes Second Reading

The House of Representatives on Thursday passed through second
reading a Bill for an Act to amend the Banks and other Financial
Institutions Act.

The bill, which seeks to mandate banks and other financial
institution in Nigeria to state in writing, ”all charges and fees
accruing to any transactions in the banks”, was sponsored by Jones
Onyereri (Imo-PDP).

The bill seeks to amongst others, increase penalties to deter
corporate and individual misconduct.

Mr. Onyereri, while leading the debate, said the bill seeks to
amend the Banking Act and to among other things, regulate banks and
other financial institutions.

He said there was a need to stop the incessant contravention of
banking laws.

The bill, when amended will prohibit carrying on of such
businesses in the country and streamline the operations of banks
and financial institutions in Nigeria to conform with
‘international best practices’.

Nigerians have over the years complained over arbitrary charges
foisted on them by banks, and some have now began to save their
money via cryptocurrency to avoid the banking system and
unnecessary charges.

The Consumer Protection Council (CPC), a government agency that
protects the rights of consumers in Nigeria, had sanctioned some
commercial banks over spurious bank charges.

CPC was reported to have recently ordered FCMB to refund N1.5
billion to the Bauchi State Government and a customer of the
bank.

The House of Representatives on Thursday passed through second
reading a Bill for an Act to amend the Banks and other Financial
Institutions Act.

The bill, which seeks to mandate banks and other financial
institution in Nigeria to state in writing, ”all charges and fees
accruing to any transactions in the banks”, was sponsored by Jones
Onyereri (Imo-PDP).

The bill seeks to amongst others, increase penalties to deter
corporate and individual misconduct.

Mr. Onyereri, while leading the debate, said the bill seeks to
amend the Banking Act and to among other things, regulate banks and
other financial institutions.

He said there was a need to stop the incessant contravention of
banking laws.

The bill, when amended will prohibit carrying on of such
businesses in the country and streamline the operations of banks
and financial institutions in Nigeria to conform with
‘international best practices’.

Nigerians have over the years complained over arbitrary charges
foisted on them by banks, and some have now began to save their
money via cryptocurrency to avoid the banking system and
unnecessary charges.

The Consumer Protection Council (CPC), a government agency that
protects the rights of consumers in Nigeria, had sanctioned some
commercial banks over spurious bank charges.

CPC was reported to have recently ordered FCMB to refund N1.5
billion to the Bauchi State Government and a customer of the
bank.