End ‘hidden’ charges, unethical marketing, Gbajabiamila informs banks

The Speaker of the House of Representatives, Femi Gbajabiamila, has shown concern over the method Deposit Money Banks charge account holders extensively; criticising that besides known charges, there seemed to be additional ‘hidden’ charges that banks enforced on their customers.

Gbajabiamila, who disclosed that the House was worried that such a practice made customers powerless, urged Nigerian banks to devise techniques to tackle high charges on loans and other services they rendered.

The Speaker stated this when the board and management of Standard Chartered Bank, led by the Chief Executive Officer, Mr Lamin Manjang, paid a visit to him, in accordance with a statement released on Monday by his Special Adviser on Media and Publicity, Lanre Lasisi.

The statement was named, ‘Gbajabiamila voices concern over banks’ ‘hidden’ charges, exploitative marketing in Nigeria’.

Gbajabiamila said, “We have issues that come up in your industry, so this visit is a welcome development. One of the issues at stake is the rate at which banks charge customers. There are claims that banks have hidden charges. This has come up a couple of times on the floor of the House. This is something that we should look into.”

The Speaker, however, showed concern over the form of ‘exploitative marketing’ some bank marketers were exposed to, asking if that was the practice worldwide.

He asked, “You have corporations in the UK and other parts of the world. What obtains here in banking, in terms of marketing – sending people to go and knock at people’s offices and all that; does it obtain in those places? If it doesn’t obtain in those countries, it is not international best practice; why should it obtain here?”

Gbajabiamila recalled how he presented a bill against corporate prostitution a few years back but the legislation did not succeed.

He said, “We are here to support you. Whatever we need to do, we should do it to support you. We need to know the kind of marketing that takes place. Is it digital marketing?

“We also have to set realistic targets for the marketers. We have the responsibility to protect Nigerians, and we also have the responsibility not to kill your business. So, it is a delicate situation.”

The Chief Executive Officer of Standard Chartered Bank had earlier informed the speaker that his bank was one of the oldest banks in Nigeria and that it had a robust presence in Asia, the Middle East and Africa.

Manjang declared that having being the CEO of the bank two years ago, it became essential to pay a visit to the speaker to reaffirm the commitment of the bank to Nigeria.

Replying to the question of exploitative marketing, Manjang disclosed that it was standard for banks to market their products to customers but further said that it had to be ethical.

He stated, “It is not peculiar to Nigeria, but it has to be ethical. Teams usually go round, but the ethical conduct has to be there.

“You need to have marketing for people to know what you offer. If there are any abuses or conducts that are not ideal, they should be called out and addressed.”