Nigerians to Boycott Banks Today over Excessive Charges

Nigerians are planning to shun banking activities today to protest exorbitant deductions by commercial banks in the country.

Consumer Advocacy Foundation of Nigeria (CAFON), a not-for-profit group dedicated to advocacy for consumer rights and protection in Africa’s largest consumer market is leading the protest.

Also, Constance Shareholders Association of Nigeria (CSAN), on Monday urged all bank users to join ‘No Banking Day’ protest on March 1.

Sola Salako, president, CAFON said that the #NoBankingDay is aimed at pressuring Nigerian banks to review their charges downwards.

CAFON is also calling for a review of bank forms and contracts to include more protection for consumers and for consumer complaints to be resolved promptly and satisfactorily.

Other demands are that banks must clear fees with consumers before debiting their accounts and that CBN must review the new Stamp Duty Charge, Account Maintenance Charge and Debit Card Maintenance Fees.

“March 1 is “No Banking Day” Protest against excessive bank charges Dear Nigerian Banks Consumers For many years now, consumers of banking services have been subject to series of poor and unsatisfactory transaction and relationship terms,” Salako said on the organisation’s website.

“We have endured excessive charges, illegal fees and unfair contracts that only protect the bank but do not protect the consumers.

“Banks debit our accounts at will for charges we never agreed to or were not aware of; they charge us for every little service; we pay for getting our statements; introduction letters; and now, some banks are charging N200 for the use of deposit and transfer forms!”

“ATM withdrawals that were free now cost N65 on 3rd withdrawals,” she said.

“ We pay N1000 for debit card issuance and renewals; we pay N105 for every online transfer; and they still charge N105 as Annual Debit Card Maintenance and now, a new Stamp Duty charge of N50 on every credit of over N1000 has just been introduced.”

“COT that was supposed to end finally in 2016 is now being reintroduced as 1% of every withdrawal purportedly as Monthly Current Account Maintenance Fees!”

“That is why CAFON, a consumer rights NGO is calling consumers to join us in protest against banking exploitation by declaring Tuesday, March 1 2016 as NO BANKING DAY!” Salako said.

Elsewhere, Shehu Mikail, national president, Constance Shareholders Association of Nigeria (CSAN), on Monday urged all bank users to join ‘No Banking Day’ protest on March 1.

He spoke in support of the scheduled protest against excessive bank charges organised by CAFON and Coalition of Nigerian Consumer Protection Association.

Mikail said the Central Bank of Nigeria (CBN) had directed all commercial banks to charge customers N50 on deposits from N1, 000 and above, as part of Nigeria’s stamp duties law on financial transactions.

“Apart from the above, there are other silent charges administered by Nigerian banks,” he said. He said there was need to alert the federal government on these excessive charges by Nigerians banks.

Mikail suggested that government should come up with a good economic blue print on how to restructure the economy.

He described the charges as another way of imposing extra tax on the masses, adding that the policy would discourage people from banking.

“Nigeria is largely under-banked especially in rural areas,” he said. “So, this type of policy will worsen the situation; in particular for traders doing business in the rural areas. “It will have negative effects on the cashless monetary policy that is already in place as it is also another way of imposing extra tax on the masses.

“It would discourage people from keeping money in the banks as Nigeria is largely under-banked, especially the rural areas.

“So, this type of policy will worsen the situation, in particular for traders doing business in the rural areas.

“It will have negative effect on the cashless monetary policy that is already in place. “The CBN should jettison this method of taxation and come up with a monetary policy that will strengthen the naira to grow the economy, instead of putting another tax burden on the people.”

He asked the CBN and banks on the right track, pleading with all banks users not to carry out any banking transactions on March 1.

“All bank users should not visit banks to transact any business; we should not use our ATM from 12 am to 12 midnight on March 1,” he said.

“There should not be any online payment and issuance of any cheque or banking instrument on March 1.

“All bank users must avoid any financial transactions on March 1 and if you must, avoid banks.”