E-Financial
CBN, CPC Look Elsewhere as Banks Milk Nigerians through ATMs
Stephen Ubimago, law editor at the Independent newspapers has asked the Central Bank of Nigerian (CBN) and the Consumer Protection Council of Nigeria (CPC) to act and stop needless extortion of ATM users in Nigeria.
Ubimago, said that that banks have continued to programme their ATMs in such a way as to extort users of the machines, while the CBN has simply been aloof.
Because the closest deposit money bank to where Babatunde Ajiri, a furniture-maker, has his workshop and showroom is the Sterling Bank branch along the Sango-Ogbayo Road, in Ogun State, he had often made withdrawals from his First Bank account using the Automated Teller Machines (ATM) at the said Sterling Bank branch.
To be sure, he is usually charged N65 on his third withdrawal transaction from the Bank’s ATM using his First Bank debit card.
Ordinarily, a user is charged for what the Central Bank of Nigeria (CBN) calls an “extended use of other banks’ ATMs,” unlike when he uses the ATM of his own bank.
According to reports, the said N65 is a fee meant for, among other things, the maintenance of the machines.
But the disturbing part of the story is that from the said Sterling Bank ATM, a user cannot withdraw more than N10, 000 in one transaction.
Thus for a withdrawal of N30, 000, a user must make three transactions. This means that for those three transactions on the machine, he will be charged the statutory N65; and for a N100, 000-withdrawal, an excessive N195 is charged. This is a rip-off, to state the least.
As such, Ajiri has practically stopped using the said Sterling Bank’s ATM, save on occasions when he is withdrawing small sums.
He now prefers journeying all the way to Sango just to access any of the ATMs of the First Bank branch located there, for at least he wouldn’t be charged so extortionately except the sum of N50 once in a month, which is fair enough.
According to Ubimago, to state that the said Sterling Bank branch is making a kill from programming its ATMs to only dispense such atomistic sum is to state the obvious.
And the fact that the bank is the only major financial institution operating in the Ijoko- Ota area means it is operating in a niche environment or indeed like a monopoly.
However, from most banks’ ATM a user could withdraw at a go N20,000 – meaning that before the N65 statutory fee could be charged on his account (that is, if he is not a customer of the bank), he must have withdrawn at least N60,000. This is also fair.
Therefore, for ATM users like Ajiri, the problem is not the N65 charge upon every third withdrawal transaction on another bank’s ATM; but the fact that it appears the CBN does not seem to regulate the banks in terms of how they programme their ATMs to dispense cash.
And Ajiri’s story is not isolated.
Miss Agatha Young, a First Bank customer and Abuja resident, narrating a similar experience said, “I live in Kubwa, and almost all banks’ ATMs in my area dispense maximum of N10, 000.
“Recently, I needed to withdraw N200,000 and my bank’s ATM was crowded, so I went to use another bank’s ATM only to discover that the machine was dispensing only N10,000 per transaction.
“I was only able to withdraw N150, 000 because other customers were waiting on the queue and I was tired of going through the same process.
“I also discovered I was charged so much for those transactions as I had exceeded three withdrawal limit using the other bank’s ATM, which is outrageous.’’
Another user, Sunday Mgbede, a Guarantee Trust Bank customer, residing in Nyanya, another Abuja suburb, said most of the ATMs in his area dispensed maximum of N10, 000 per transaction.
“If you want to make withdrawals at weekends around the Nyanya/Mararaba axis, you will discover that only few ATMs are dispensing over N10, 000 per transaction,” he said.
“The concerned authorities should please look into this matter because people are suffering, there is no money in the country, yet banks want to make profit off customers.”
Another customer of First Bank, Erica Jonah, said she used her ATM card to withdraw N100,000 from another bank and discovered the machine was programmed to dispense N10,000 per transaction and was charged N65 per transaction.
Jonah said that was not her first experience, describing the practice by banks involved as fraudulent.
It is in light of the foregoing that the Senate on Wednesday, October 17, last year, asked its committees on Banking, Insurance & other Financial Institutions and Finance to invite Mr Godwin Emefiele, the CBN Governor, to explain why its approved official charges are skewed in favour of banks as against ordinary bank customers.
The committees are also to investigate the propriety of ATM Card maintenance charges in comparison with international best practices and report back to the Senate.
These resolutions were sequel to a motion sponsored by Gbenga Ashafa (APC, Lagos East) on “Illicit and Excessive Charges by Nigerian Banks on customers account with particular focus on Automated Teller Machine (ATM) Maintenance and Withdrawal Charges.”
Ashafa noted there have been several complaints from Nigerians generally and on social media concerning illicit and excessive charges by commercial banks on customers’ account with particular focus on ATM maintenance charges and ATM withdrawal charges.
It would be recalled that the CBN in 2017 increased the maintenance fees charged by banks on debit and credit card maintenance from N100 a year to N50 per month (N600 a year) as contained in its “Guide to Charges by Banks and other Financial Institutions.”
Ashafa also expressed worry that most banks have deliberately manipulated their ATM not to dispense more that N10,000 per withdrawal in some cases and in most cases not more than N20,000.
“This is a deliberate ploy to manipulate the ATM machines which are ordinarily manufactured to dispense as much as N40,000 per transaction, in order to attract more bank charges from customers who are forced to carry out more transactions due to the manipulated machines,” Ashafa said on the occasion.
“It appears the CBN is becoming insensitive to the plight of Nigerians who are already complaining of excessive charges by commercial banks. If the CBN is trying to encourage a cashless Nigeria, why should they be making it more difficult and expensive for Nigerians to do transactions.”
In his contribution, Ike Ekweremadu, the Deputy Senate President, urged the CBN to live up to its responsibility of protecting the interests of Nigerians and not just the banks.
He also chided the Consumer Protection Council (CPC) for not “living to expectation,” calling on the institutions to wake up to its responsibility of protecting the interest of customers.
The Senate, thereafter, urged banks to allow N40, 000 maximum per withdrawal through an ATM and not N10, 000.
Despite these and other resolutions passed by the Senate, the banks have been defiant.
The CBN and CPC must therefore urgently act to rein in this needless exploitation of Nigerians in the name of ATM maintenance charges; otherwise the leadership of these institutions should resign.
The sixteenth season of DiamondXtra, a savings and reward account where customers of Access Bank are rewarded with several prizes, have been unveiled in Lagos.
L – R : Doris Okpara, Product Manager, DiamondXtra; Ngozi Igboanugo, Regional sales Manager Festac 1&2 & mainland Access Bank; Bolarinwa Animashaun, Regional Sales Director Lagos 2 Access Bank ; Emeka Ezikeugo, Diamondxtra N200,000 Onsite winner; and Adaeze Ume, Head Consumer liabilities, Access Bank during the launch of Diamondxtra Season 16 held at Alaba International Market Lagos yesterday.
The Season 16th of the special interest yielding hybrid account which allows deposit of both cash and third-party cheques has been upgraded as customers will win prizes to the value of N200 million and three SUVs, amongs other mouthwatering prizes.
Speaking at the unveiling in Alaba International Market, Lagos, Mr Bolarinwa Animashaun, regional sales director, Lagos, said the new season will bring more goodies to the customers as the bank has taken their interest at heart.
“In the last fifteen years, we have been able to ensure customer loyalty, reward committed customers over time and show that we are a bank that is ready to empower people and partner with people.
“If I take it into specific figures, we have rewarded 26,696 customers and we’ve given a total sum of N6.5 billion over the period.
This Season16is interesting, because, we have seen a lot of opportunities to expand into digital opportunities and this time around, we will be rewarding 15,786 customers, and 10,000 of them will be digitally rewarded.
“This is almost half of what we have done over the last 15 years. So that is what is making it special. We have takenit into the possibilities of how technology can expand our business and reward customers”.
The draws for the new season are going to be the same like the previous ones as it will be held in different regions.
“So, we start from the monthly draws, quarterly draws and the annual draws. What makes it extremely interesting this year is that we will be rewarding with up to N200 million in prizes and we have added some very interesting gifts. We will be given out three SUVs as part of the N200 million price for this year”, Animashaun added.
At the unveiling, Access Bank conducted onsite draws where 48 customers who have DiamondXtra accounts and were present at the unveiling won cash prizes ranging from N20,000 to N200,000.
Breakdown shows 40 customers won N20,000 each, five customers won N50,000, two customers won N100,000, while one customer went home with N200,000.
Among winners of the N20,000 prize was Mr Victor Edobor, who said he opened the DiamondXtra accounts 24-hours before the draws.
One of the two winners of the N100,000 prize, Mrs. Maureen Nneka Oforka, said she was surprised to have won at the well-attended event as that was her first time winning any prize.
She said, “I have never won any prize in my life. This is my first. I came here reluctantly and thank God, I am here and I am a winner of N100,000 which has already been paid into my account.
The grand prize winner of N200,000, Mr. Emeka Ezikeugo, a trader in Alaba, said. “I will forever be grateful to Access Bank for the prize as I was not expecting it. I thank the bank for showing leadership among its peers”.
To be part of the winning train and qualify for the DiamondXtra season 16 which is open to both new and existing customers, new customers are required to open a DiamondXtra savings account with just N5,000 by dialling *901*5# or walking into one of our branches to open the account.
However, the more multiples of N5,000 both new and old customers save, the higher their chances of winning at the monthly, quarterly and annual draws.
DiamondXtra is an interest yielding hybrid account which allows deposit of both cash and third party cheques. Hybrid means a combination of both savings and current account features. The DiamondXtra reward scheme has given away over N6.5 billion in cash and household items to over 15,000 loyal customers over the last 15years. Please click HERE to learn more.
Recognising the underrepresentation of women in the technology sector, Lafarge Africa Plc, has launched the Girls in Tech Program, a pioneering initiative aimed at empowering young women in technology.
Meticulously crafted to bridge the gender gap in tech and empower 10 young females between the ages of 18-25 years from Lafarge Africa Host communities in Cross River State, the program is poised to make a significant impact in the region.
The Girls in Tech Program seeks to harness the unique talents of these young women and introduce them to the dynamic world of technology. By providing them with essential skills and opportunities, the initiative aspires to equip them to become self-reliant as well as problem solvers in society.
In collaboration with Aptech and Arena Multimedia,globally recognized leaders in technology incubation and opportunity, as well as The Bridge Leadership Foundation, the boot camp promises to be a transformative experience for the participating girls, who are eager to make their mark in the tech industry.
Speaking during the onboarding to flag-off in Calabar recently, the Plant Manager, Lafarge Africa Plc, Sotirios Valsamakis, who was represented by the Human Resources Business Partner, Lafarge Africa Plc; Barong Ita, revealed that the program was in line with the company’s commitment to diversity and inclusion.
She also added that the initiative is designed to ignite a spark of inspiration, hope, and possibilities in the heart of the selected girls across the host communities.
“As an organization, people are an integral part of our sustainability drive, and we are invested in building lasting progress by empowering members of our host communities. We also recognize the need for greater and greener diversity and inclusivity within the tech sector.”
Today’s event is not just about launching a program. It is about igniting a spark of inspiration, hope, and possibilities in the hearts of these young women. It is about challenging stereotypes.”
Also speaking at the event, the Cross Rivers State Commissioner for Science, Innovation & Technology, Justin Beshel represented by Edwin Adie, Technical Senior Advisor, Cross Rivers State Ministry of Science & Technology commended Lafarge Africa for the initiative adding that it is in line with the State government’s plan towards science, technology and innovation development.
As the country faces economic challenges, the need for adaptive strategies in the fintech industry becomes paramount. In line with this, leading Fintech startup, Hydrogen Payment Services Limited (‘Hydrogen’), has teamed up with Co-creation Hub (‘CcHub’) to host an insightful event themed, ‘Adapting Fintech Business Models to Economic Climes’.
The event, set to take place on Thursday, April 18, 2024, from 12:00 WAT at the CcHub office in Sabo, Lagos, will delve deep into the intricacies of Nigeria’s economic challenges and how these influence the fintech ecosystem.
Participants will gain actionable insights on how to adapt fintech business models to volatile economic conditions by prioritising flexibility, agility, and customer-centricity.
This collaboration underscores the shared commitment of both entities to empower aspiring founders venturing into the Fintech space amidst economic uncertainties.
By leveraging their respective expertise and resources, Hydrogen and CcHub aim to equip emerging entrepreneurs with the knowledge, tools, and support needed to thrive in today’s dynamic economic conditions.
Emeka Awagu, Chief Technology Officer at Hydrogen, commented on the strategic partnership with CcHUB: “Our alliance with CcHUB amplifies our shared commitment to pioneering transformative solutions in Nigeria’s fintech sector.
“By leveraging Hydrogen’s technological expertise alongside CcHUB’s innovative approach, we are primed to set a new standard for fintech excellence and drive impactful change across the industry.”
The event will feature a distinguished panel of industry experts and thought leaders, including, Ina Alogwu, Group Director, Digital Transformation, ARM HoldCo; Emeka Awagu, Chief Technology Officer, Hydrogen, and Miracle Ezechi, Digital Marketing Manager, Hydrogen.
The panel discussion will be moderated to encourage an engaging and insightful conversation on the strategies and innovations required to thrive in Nigeria’s Fintech landscape amidst economic challenges.
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