Nigerians Pay N715bn For Electronic Transactions, Others

Nigerians Pay N715bn For Their Electronic Transactions, Others

Nigerians paid a sum of N714.61 billion to 11 banks in the country for their electronic transactions and other commissions.

The aforementioned figure paid between January and September 2022, represents a 16.92% increase from the N611.21 billion earned by the banks from the income source in the corresponding period of last year (2021).

The financial institutions that received the payments were – Zenith Bank Plc, Sterling Bank Plc and Subsidiary, Stanbic IBTC Holdings Plc, Wema Bank Plc, Fidelity Bank Plc, and Union Bank of Nigeria Plc.

Others were -United Bank for Africa Plc, Unity Bank Plc, First Bank of Nigeria Holdings Plc, Guaranty Trust Holding Company and Subsidiary Companies, and Access Holdings Plc.

BizWatch Nigeria understands that the other commissions include -credit-related fees and commissions; account maintenance charges; corporate finance fees; e-business income; asset management fees; commissions on foreign exchange deals; commissions on touch points; shared service fees; income from financial guarantee contracts issued; account services, maintenance, and ancillary banking; and transfers related charges.

How the banks recorded their electronic transactions

As seen in their financial records for the nine months period under review, the banks disclosed below their electronic transactions by customers:

  • UBA -N138.08 billion.
  • Zenith Bank Plc-N117.90 billion
  • Wema Bank -N12.02 billion
  • Fidelity -N25.04 billion
  • Stanbic IBTC -N72.47 billion
  • Union -N12.65 billion
  • Sterling -N19.84 billion
  • Access -N133.49 billion
  • GTCO -N66.94 billion
  • FBN -N110.84 billion.
  • Unity Bank -N5.34 billion)

Expert laments excesses charges by the banks

Uju Ogubunka, the President of the Bank Customers Association of Nigeria (BCAN), lamented that financial institutions in the country were burdening their customers with excessive charges.

His words: “The issue of excess charges have been a major source of concern to us as an association. We have since been fighting it and we will not stop.

“However, I must say that in most cases, the excess charges imposed on bank customers are not deliberate but a result of a capacity-building problem. That is when new recruits or inexperienced hands handle transactions and overcharge.

“Also, most times, when the banks overcharge, they are made to repay customers with prime interest plus two percent.”