Central Bank of Nigeria (CBN) has hiked fees charged by banks on debit and credit card maintenance from N100 a year to N50 per month. The new tariff regime takes effect from May 1, 2017, as part of its charges review by banks and other financial institutions in the country.
The “Guide to Charges by Banks and Other Financial Institutions” provides a basis for the application of charges on various products and services offered by the banks and other financial institutions in Nigeria to their customers.
According to Kevin Amugo, director of Financial Policy and Regulation Department at the CBN, the charges came after extensive consultation with stakeholders. “The aim of the guide is to enhance flexibility, transparency and competition in the Nigerian banking industry,” he noted.
Amugo explained that, “where a charge is stipulated as “negotiable”, banks and other financial institutions are required to draw the attention of customers to their rights to negotiate and the two parties are required to mutually agree on the applicable interest and/or charge via a verifiable means.”
Although the Guide provides for charges on various products and services of the banks and other financial institutions, it is inexhaustive. The banks and other financial institutions are required to present any new product, service or charge not covered by the guide to the CBN for prior written approval.