Goodbye COT, Hello Maintenance Fee! CBN Introduces New Charge on Current Account Transactions

The Central Bank of Nigeria (CBN) has announced that bank customers will start paying a maintenance fee on current account transactions.

CBN’s Financial Policy and Regulation Department Director Kelvin Amugo, in a circular released by the apex bank said that the new fee, a negotiable current account maintenance fee not exceeding N1 for ever N1 million, may be charged in respect of all customer-induced debit transactions.

Amugo, who said that the CBN was not oblivious of the impact of declining crude oil prices, operation of Treasury Single Account, and some other market turbulence on the viability and stability of the banking system, explained that the new fee was introduced in the interest of stability of the banking system.

The fee is coming weeks after the regulator struck out Commission on Transaction (COT) fee, which contributed significantly to lenders’ profitability.