Banks and ATM Card Maintenance

NIGERIA - Recently, the Senate passed a resolution calling on the Central Bank of Nigeria (CBN) to suspend the Automated Teller Machine (ATM) card maintenance charges being deducted from customers. 

This resolution came as part of a motion on perceived illicit and excessive bank charges on customers’ accounts, sponsored by

Senator Olugbenga Ashafa (Lagos East, APC).

The Senate also called on commercial banks operating in the country to configure their machines to dispense up to N40,000 per withdrawal pending the outcome of the investigation by the Senate committees on excessive and illicit bank charges.  

Speaking on the motion, the president of the Senate, Dr. Abubakar Bukola Saraki said the Senate will always support any motion that affects the lives of Nigerians. The Senate President stated that the Senate must work to ensure that the resolution on the excessive bank charges goes beyond the debate stage, so that whatever action the Upper Legislative Chamber takes would come into effect.

The Senate further directed its Committee on Banking, Insurance and other Financial Institutions to conduct an investigation into the propriety of ATM card maintenance charges in comparison with international best practices and report back to the Senate. In addition, it directed the committees to invite the Central Bank of Nigeria (CBN) governor, Mr. Godwin Emefiele, to explain why official charges approved by the apex bank were always skewed in favour of the banking institutions and against customers and called on the Consumer Protection Council (CPC) to look into the various complaints of excessive and unnecessary charges by Nigerian banks.

Recently, the Senate passed a resolution calling on the Central Bank of Nigeria (CBN) to suspend the Automated Teller Machine (ATM) card maintenance charges being deducted from customers. This resolution came as part of a motion on perceived illicit and excessive bank charges on customers’ accounts, sponsored by Senator Olugbenga Ashafa (Lagos East, APC).

The Senate also called on commercial banks operating in the country to configure their machines to dispense up to N40, 000 per withdrawal pending the outcome of the investigation by the Senate committees on excessive and illicit bank charges.

Speaking on the motion, the president of the Senate, Dr. Abubakar Bukola Saraki said the Senate will always support any motion that affects the lives of Nigerians. The Senate President stated that the Senate must work to ensure that the resolution on the excessive bank charges goes beyond the debate stage, so that whatever action the Upper Legislative Chamber takes would come into effect.

The Senate further directed its Committee on Banking, Insurance and other Financial Institutions to conduct an investigation into the propriety of ATM card maintenance charges in comparison with international best practices and report back to the Senate. In addition, it directed the committees to invite the Central Bank of Nigeria (CBN) governor, Mr. Godwin Emefiele, to explain why official charges approved by the apex bank were always skewed in favour of the banking institutions and against customers and called on the Consumer Protection Council (CPC) to look into the various complaints of excessive and unnecessary charges by Nigerian banks.

The pervasive feeling of many bank customers in Nigeria is that banks have been declaring fat profits year in year out, yet the quality of their services as far as the banking public is concerned leaves much to be desired. From accusations made, the banks are not up and doing with regard to the need for them to deliberately embark on patriotic developmental roles. Banks are particularly accused of growing their loan book not caring about rendering quality service to their customers.

Bank customers have consistently complained about what they describe as excessive and arbitrary charges from the banks. 

We applaud the Senate’s decision on ATM card charges as step in the right direction.

 

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