Banks Multiple Charges Unsettles Customers

Following the reduction in interest rates and zero Commission on Turnover, many bank customers are becoming disgruntled as banks in the country have resorted to multiple charges on customers’ accounts.

The banking industry has been at an edge since the easy access to government funds, at zero cost, was blocked, owning to the enforcement of the TSA. The development became heightened when the Central Bank of Nigeria (CBN) embarked on monetary easing which reduced the cost of borrowing, with some customers renegotiating downward their interest rates on loan, as the apex bank adjusted the monetary policy rate to 11 percent, from 13 percent.

There were no fewer than 10 charges associated with banking activities, including the maintenance fees which banks are now charging on monthly basis on current accounts, and the Value Added Tax on virtually every charge against customer, including the charges on SMS alert.

Also charges for transfers online; over-the-counter; and mobile App; Remote-on-Us (charges incurred for using other banks’ ATM to withdraw money more than three times in a month); and the recently introduced stamp duties charge. The cost of acquiring cards from N600 to N1000, with a VAT charge afterwards.

However, with the N115 maintenance charge already on current account, the banking industry would be making about N1.7 billion from customers monthly. The figure represents an average of N58 million daily.