By Dipo Olowookere
A bill to mandate financial institutions operating in Nigeria to state in writing all charges and fees accruing to any transactions embarked upon by customers has scaled through the second reading at the House of Representatives.
The bill, sponsored by Mr Jones Onyereri, is tagged a Bill for an Act to amend the Banks and other Financial Institutions Act.
At the plenary on Thursday, the lawmaker argued that the rate at which financial institutions in the country, especially banks, arbitrarily charge customers was becoming very alarming.
He noted that with the amendment, banks would be mandated to explain to their customers what and why a fee was charged.
Mr Onyereri explained that the bill also seeks to increase penalties to deter corporate and individual misconduct.
According to him, his aim is mainly to amend the Banking Act and to among other things, regulate banks and other financial institutions, stressing that there was a need to stop the incessant contravention of banking laws.
Recall that 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.
But 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.
