- The Central Bank of Nigeria has revealed the right bank charges in response to Nigerians’ complaints about high bank charges
- CBN also announced a decrease in electronic costs one of the contentious issues between banks and customers
- Nigerian banks are making a lot of money from electronic transactions, having made over N200.45 billion from e-business transactions
The guideline signed Chibuzor Efobi, for the Director, Financial Policy and Regulation Department, stated that the review was in response to “further evolution in the financial industry in the last few years’’.
The apex bank stated that the new guide included review of other bank charges to align with market developments.
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It stated that it also comprised inclusion of new sections on accountability /responsibility and a sanction regime to directly address instances of excess unapproved, (arbitrary) charges.
It added that the revised guidelines took effect from Jan.1.
The News Agency of Nigeria (NAN) reports that the CBN has the mandate to issue the guide to bank charges.
The guide provides a basis for the application of charges on various products and services offered by banks and other regulated institutions under the purview of the apex bank.
The guide was first released in 2004 and revised in 2013 and 2017 due to market developments such as new innovations in products and channels, as well as new industry participants.
Here are some of the major electronic charges
- Annual Card maintenance fee on foreign currency (FCY) denominated cards is reduced to $10 from $20.
- ATM charges are reduced to N35 after third withdrawal within a month from N65
- The charge for hardware token will on cost recovery basis subject to a maximum of N2,500 from previous maximum charge of N3,500
- Fee for SMS mandatory alert will be on cost recovery from previous maximum charge of N4.
- Bill payment via e-channels will attract a maximum charge of N500 from 0.75% of the transaction value subject to a maximum of N1,200.
- A fee scale for electronic transfers to replace the current flat fee of N50. Accordingly transfers below N5,000 will attract a maximum charge of N10; transfer from N5001 – N50,000 -N25; and transfers above N50,000- N50
- Card maintenance fee on current account has been removed as the accounts already attract account maintenance fee. Savings accounts will now attract a card maintenance fee of N50 per quarter from N50 per month
Nigeria largest banks by customer deposits
Meanwhile, total customer deposits in nine Nigerian banks climbed to N30.81 trillion at the end of the first quarter of this year, up from N29.73 trillion in December 2020.
United Bank for Africa Plc was the top bank in terms of customer deposits as of March 31, 2021, with deposits growing to N5.79 trillion from N5.68 trillion in December.
Others were revealed in the report which used public information from the banks audited accounts published on the Nigerian exchange website.