Court Dismisses Case Against CBN's Directives on Bank Charges

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Wednesday, February 10, 2021 / 8:03 AM / By CBN / Header Image Credit: Amehnews


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The Federal High Court sitting in Abeokuta, Ogun State Capital, has dismissed a suit instituted by a legal practitioner, Olumide Babalola, challenging the Central Bank of Nigeria (CBN) policy on Current Account maintenance Fee contained in the Guide to the Charges by Banks and other financial Institutions of January 2020.

 

Babalola had instituted the action in the name of his law firm, Babalola LP, in which he contended that the policy and guidelines of the CBN violated his fundamental human rights.

 

The CBN, through its Counsel, Adeleke Agbola, of Cheakley Chambers, however challenged the suit on the ground that the plaintiff lacked the legal capacity to institute the suit on a policy that affects the public.

 

In his Notice of Preliminary Objection to the Suit, Agbola had contended that the plaintiff failed to show that the CBN acted in bad faith or breached any law by issuing the guidelines.

 

The trial judge, Justice M Shittu Abubakar, after careful analysis of the case, on Wednesday, February 3, 2021, dismissed the suit in its entirety for lacking in merit and upheld the preliminary objection.

 

The Court held that guidelines issued by the CBN, authorizing deduction of Current Account maintenance charges was lawful and within the statutory powers of CBN.

 

The Court also concurred with the argument canvassed by the CBN Counsel that the Plaintiff has not shown that the CBN breached any known law by issuing the guidelines.


Justice Abubakar also held that the Plaintiff/Applicant ought to have negotiated with his bank, Access Bank Plc for a reduction of his charges instead of dragging the CBN to Court.


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Other Relevant CBN Circulars

1.     CBN Issues Approvals-In-Principle To Three Payment Service Banks - Sep 18, 2019

2. CBN Approves Charges On Withdrawals And Deposits; Unbundles Charges on Electronic Merchants - Sep 18, 2019

3.    CBN Amends Guide To Charges By Banks And Other Financial Institutions In Nigeria - Sep 10, 2019

4.  Guide To Bank Charges Circular To All Banks, OFIs And Mobile Payments Operators - 2017 - Apr 2017


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Related News/Links on Bank Charges By Proshare

1.       Bank Charges: Role, Responsibilities and Rights - Jul 27, 2017

2.      VIDEO: The Role of Government Is To Protect Consumers - Sola Salako - Jun 13, 2017


Proshare Nigeria Pvt. Ltd.


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3.  Japaul Plc's Access Bank Burden: Excessive Charges Unhinge Relationship As FHC Vacates Mareva Order - May 07, 2019

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8. CBN commences revision of bank charges - Jul 09, 2012

9. Multiple bank charges worry CBN - Dec 08, 2006


Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

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