Coalition Demands Action on Hidden Bank Charges and Customer Exploitation in Nigeria’s Banking Sector
Consumer Trust at Risk as Nigerians Cry Out Over Unexplained Bank Deductions
Nigeria’s banking sector is once again under public scrutiny following widespread outcry from customers, civil society groups, and advocacy organisations over alleged unexplained deductions, hidden fees, and exploitative banking practices.
In a powerful show of public frustration, a coalition of civil society groups under the banner CSOs Against Bank Fraudulent Practices and Customer Victimisation staged a peaceful protest in Abuja, demanding that the Federal Government and the Central Bank of Nigeria (CBN) take decisive action to curb unethical charges and restore public confidence in the financial system.
The coalition accused several banks of engaging in systemic exploitation of customers, through arbitrary charges, delayed reversals, and opaque deduction patterns that have left millions of Nigerians disillusioned with formal banking.
“We cannot stand by and watch financial institutions victimize customers while regulatory agencies remain silent,” declared Ms. Flora Elekwa, Director of Mobilisation for the coalition, during the protest.
“Nigerians deserve transparency, fairness, and accountability from the banks they trust.”
A Growing Pattern of Hidden Deductions
Elekwa and other civil society leaders alleged that cases of unauthorized withdrawals and debit alerts had become alarmingly frequent, with customers often losing thousands of naira without clear explanations.
The coalition cited a case involving Miden Systems Limited, where “thousands of dollars and millions of naira” were allegedly withdrawn under questionable circumstances, prompting petitions to the CBN and anti-graft agencies.
“Our protest is not against digital banking or innovation,” Elekwa explained.
“It’s against exploitation masquerading as service. Banks cannot continue to hide behind fine print and vague policy terms to defraud Nigerians.”
The group submitted petitions to the CBN Consumer Protection Department and the Economic and Financial Crimes Commission (EFCC), demanding immediate investigations and sanctions against banks found guilty of unauthorized deductions or non-transparent billing practices.
Nigerians Speak: ‘Our Money Is Disappearing’
Beyond the CSO protests, ordinary Nigerians have also continued to express frustration over recurrent and unexplained debits from their accounts — many of which, they say, violate the CBN’s approved fee structure.
Mrs. Helen Agodo, a customer of FirstHoldCo Plc, told NAN that her daily debit alerts had become unbearable.
“There was a day I calculated all the debit charges from my bank — it came to over ₦1,000 in just one day,” she lamented.
“Imagine what the bank earns if the same deductions happen across thousands of customers daily. It’s legalized extortion.”
For Cheta Ugochukwu, a Guaranty Trust Bank (GTBank) customer, the situation has reached breaking point.
“I was charged ₦1,146 for SMS alerts in one month — for messages I didn’t even read,” she said.
“This is not just unfair, it’s an abuse of trust. If this continues, many Nigerians will simply withdraw from the banking system altogether.”
Similarly, Mr. Usman Idris, a customer with Fidelity Bank, said he was shocked when ₦3,700 was deducted from his account as ‘maintenance fees.’
“When I went to the bank to ask for an explanation, they told me to write a formal letter. But when they were taking my money, they didn’t ask for permission,” Idris said angrily.
A Crisis of Confidence in the Banking System
The Bank Customers Association of Nigeria (BCAN), led by its President Uju Ogubunka, has confirmed receiving multiple complaints and has written formally to the CBN seeking clarification on the rising incidence of unauthorized deductions and noncompliance with the CBN Guide to Bank Charges.
BCAN, a nonprofit organization that represents the interests of individual and corporate bank customers, said many of these practices violate basic consumer protection principles and threaten the credibility of the cashless banking initiative.
“If Nigerians lose faith in the system, the entire digital banking revolution collapses,” one BCAN official told BRANDECONOMY.
“Trust is the currency of modern finance — and right now, it’s being eroded.”
CBN’s Role Under the Spotlight
The Central Bank of Nigeria has long maintained that all commercial banks must comply with its Guide to Bank Charges, first introduced in 2017 and periodically updated to prevent excessive or arbitrary fees.
However, the recent wave of complaints suggests that compliance and enforcement may be inconsistent.
Consumer rights advocates argue that while the CBN’s Consumer Protection Framework is robust on paper, its implementation remains weak, allowing some banks to exploit grey areas in the system.
BRANDECONOMY analysis shows that some of the most common violations include:
- Charging multiple “maintenance” fees within a single billing cycle;
- Deducting excess SMS or e-alert fees above approved limits;
- Delaying reversals on failed electronic transactions;
- Charging unauthorized “processing” or “administrative” fees;
- Misapplying electronic transfer levies (ETL), with some banks deducting ₦100 instead of ₦50 per transaction.
If unaddressed, experts warn, these actions could undermine Nigeria’s financial inclusion agenda, pushing many low-income citizens back into cash-based, informal transactions.
The Regulatory and Legal Dimensions
Under the Banks and Other Financial Institutions Act (BOFIA) 2020, the CBN is empowered to sanction financial institutions for infractions against customers — including fines, suspension, or withdrawal of operating licenses for repeat offenders.
Legal practitioners also note that arbitrary or unexplained deductions can constitute both civil and criminal breaches, particularly under sections relating to fraud, breach of trust, and unfair trade practices.
“These charges violate both consumer protection law and basic contract principles,” said one financial law expert.
“The CBN must make an example of non-compliant banks to restore public trust.”
The Federal Competition and Consumer Protection Commission (FCCPC) also has a mandate to protect consumers from exploitative practices across industries — but financial experts believe its collaboration with the CBN must be strengthened for greater impact.
BRANDECONOMY Insight: Why This Matters
Nigeria’s financial ecosystem is at a critical crossroads.
While digital innovation has expanded access to financial services, the disconnect between customers and the institutions that serve them continues to widen.
Hidden bank charges and unclear communication undermine the very foundation of financial inclusion and digital trust, which are pillars of Nigeria’s Fintech and cashless economy goals.
In BRANDECONOMY’s analysis, the current outcry is a symptom of deeper structural weaknesses in Nigeria’s retail banking model — one overly focused on revenue generation rather than customer retention or satisfaction.
Unless systemic reforms are implemented, the risk is that consumer backlash could slow digital adoption, undermine fintech partnerships, and drive financial exclusion.
The Path Forward: Restoring Trust and Accountability
Stakeholders agree that transparency and accountability are key to rebuilding public trust in the banking system.
Several urgent actions have been proposed to address the crisis:
1. Stronger CBN Enforcement
The apex bank must go beyond issuing circulars and conduct real-time compliance audits, with public disclosure of penalties for erring banks.
2. Independent Consumer Redress Mechanism
A customer protection board — independent of both banks and regulators — should be empowered to resolve disputes quickly and enforce compensation where due.
3. Digital Transparency
Banks must introduce open dashboards within mobile apps, detailing every charge with reasons, timestamps, and applicable CBN references.
4. Public Education
Organisations like BCAN and CSOs should intensify financial literacy campaigns, educating citizens about their rights and how to challenge unauthorized deductions.
5. Strengthening Civil Society Oversight
Coalitions such as CSOs Against Bank Fraudulent Practices can serve as whistleblower watchdogs, ensuring customer complaints are not swept under the rug.
Conclusion: The Banking Sector Must Relearn Trust
The Nigerian banking system, once seen as a safe haven for deposits, is now being tested by public outrage and declining confidence.
What began as isolated complaints has grown into a nationwide consumer rights movement demanding transparency, fairness, and respect.
As BRANDECONOMY observes, sustainable financial growth cannot thrive on customer exploitation.
Every successful financial ecosystem — from Kenya’s M-Pesa to India’s UPI — was built on trust, transparency, and fairness.
If Nigerian banks and regulators can confront these issues head-on, the country can still achieve its goal of a digitally inclusive, customer-first economy.
If not, the silent exodus from formal banking will continue — with profound implications for Nigeria’s economic future.
