Nigerian Banks and Killer Charges

The new N100 monthly maintenance fee on Automated Teller Machines (ATM) cards by some banks is a malevolent reflection of avarice of Nigeria’s financial institutions.

Just like other charges, the monthly maintenance fee is not consistent with the monetary policies of the Central Bank of Nigeria (CBN).

And because of lax regulation, many account holders are overcharged/under-credited to the extent of closing their businesses and losing their properties to banks, thereby affecting adversely the financial inclusion strategy of the CBN.

Introducing fees and charges at will means that the banks do not follow the CBN’s guide to bank charges, but do as they deem fit.

This is clearly not acceptable.  CBN and federal legislators must stamp their feet and rein the banks in.

It is worrisome that the same banks which agreed to abolish interbank transaction charges on ATM are the ones sneaking monthly charges through the back door.

If this charge is allowed, it will add to some already existing charges like;  debit/ Overdraft/ loan interest;  fees on facilities granted;  Commission on turnover(COT) and VAT on COT; VAT on non-VAT transactions; Inappropriate management of Commercial Papers  and Bankers Acceptance; Foreign Exchange( Forex) sales, bidding and rates; undue default fees.

Others are; under-credit of interest on interest yielding investments;  unauthorized and unusual debits to customers accounts; unremitted Withholding taxes; Inclusion of unknown cheques in your accounts as well as overcharge for cheque book replacement.

It not only speaks to the integrity of the banking system but suggests the uselessness of having monies in the banks when it cannot work for you but rather you working for the banks.

Many operators of micro, small and medium scale businesses said that high lending rates by deposit money banks in the country are denying them access to credit facilities, thereby leading to the collapse of many small businesses.

Deposit money banks charge as high as 19 per cent to 25 per cent interest rates on loans given to SMEs, a development, which operators described as “destructive” to indigenous businesses.

Banks find it more attractive to invest other people’s money in treasury bills or engage in forex trade rather than finance SMEs.

Time is now to do something about the inherently lazy unproductive banking system that has served to spread poverty.