Yemisi Izuora
The Senate has invited the Governor of the Central Bank of Nigeria, Godwin Emefiele, over arbitrary charges and illegal deductions by commercial banks.
The Senate’s decision was sequel to a motion sponsored by Senator Magnus Abe, who expressed dissatisfaction with the issues of illegal deductions and arbitrary charges by all commercial banks.
Abe in a motion co-sponsored by 22 senators noted 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 CBN.
He stated that the CBN on February 20, 2017 reported that it had recovered about N2.6 billion from banks as excess charges imposed on their customers in 2015 through a statement issued by the then Director, Corporate Communications Department, Muazu Ibrahim.
In 2015 alone, the apex bank investigated about 6,000 of such cases.
Abe said: “Several of the Central Bank of Nigeria applicable rules that should remedy such hardship and discourage sharp practices by the commercial banks are conflicting, vague and unjust, thereby causing the commercial banks to frequently shortchange their customers.
“The requests made by bank customers to the Central Bank of Nigeria for clarification of the rules are largely ignored.
“If this trend is allowed to continue unabated, Nigerians will be worse of for it, while the commercial banks will continue to declare huge profits at the expense of innocent Nigerians from regular depositors to business firms.
“Some of the conflicting, vague and unjust rules include, but not limited to: APG Accounts Irregularity: Some banks charge at its lending rates but pays no interest to the customer on the AFC deposits, while technically the bank is lending the customers part of his funds in the AFC account.
The CBN enjoins banks to maintain a 7 basis points between their lending and deposit rates. This they do on moral suasion. There ought to be specific and enforceable rates.
“Interest on credit balances in customers account: This monetary and credit policy Guideline issued by the Federal Government states that banks must continue to pay interest on credit balances on customer account where negotiated. The banks argue that the customers did not negotiate and so are not entitled to interest. Most customers are not aware of this right. The burden of communicating this right verifiably must rest on the commercial bank.
“Multiple Accounts and Debt Service Reserve Accounts Irregularity: to obtain loans desperate costumers are forced to open separate account by the Banks where certain percentages of receipts from the customers’ income is held for servicing of indebtedness.
“Consequently substantial credit balances are in DSRA accounts without credit interest, while the current account will have large debit balances on which the bank takes their maximum interest. Certainly an unfair practice.”
Other senators like Dino Melaye and Yusuf Yusuf contributed in support of the motion.
Melaye said the motion desires more than resolution, adding that there is the need for the Senate to conduct a public hearing on the matter.
He said billions of naira have gone down the drain with “little, little deduction by banks”.
After exhaustive deliberations on the motion, Senate also resolved to hold public hearing on the matter inviting CBN and Commercial banks in order to proffer lasting solution to the matter.
The President of the Senate, Dr. Abubakar Bukola Saraki, said it is important for the Senate to defend the interest of Nigerians who elected them into office.