- Igbo traders in letter to the Central Bank of Nigeria sounded the alarm over excessive fees from commercial banks in Nigeria
- They argued that majority of charges, deductions were illegal and want CBN to force bank to shut down
- CBN responded by asking Igbo traders and Nigerians to resist unnecessary fees from commercial banks.
The Central Bank of Nigeria (CBN) has responded to the appeal of Igbo traders and Nigerians on the bank charges imposed on them by deposit banks (DMBs).
According to CBN, Nigerians have a right to resist arbitrary and illegal bank charges and should not sit idly by until they are satisfied.
However, the governor of the CBN, Godwin Emefiele, wants bank customers to have the guide to bank charges.
He noted that Nigerians should read his guide to banking very well and resist any illegal accusations.
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“Go read your Guide to Bank Fees, you must not authorize any bank to pass on your account discretionary charges that are not included in the Guide to Bank Fees.”
Emefiele also urged bank customers to take the guide with you, as they will be carrying any holy books brought back by Nation.
Igbo traders had called on the governor of the CBN that depositors and other bank account operators in Nigeria were facing “unbearable” transaction fees.
Emefiele praises their gestures, noting:
“If you find bank charges that aren’t listed in the guide, sound the alarm. We have our customer protection department, we have always advertised our own email hotline where you can always reach us ”.
“Always talk to the bank to waive the charge because it is not supposed to be there, you can also contact the banks with lawyers and accountants to make a waiver of all illegal bank charges.
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List of bank charges approved by CBN
A check on the CBN Guide to Bank Charges required that details of all fees and charges applicable to a transaction be disclosed to the customer at the time of consumption, (if applicable) and the receipt / alert / confirmation of the transaction for all charges must contain a description of the charge.
The guide also noted that for electronic funds transfer, the guide states that transfers under 5,000 N will incur a fee of 10 N, 5,001 to 50,000 N will attract 25 N and that transactions above 50,000 N will attract a fee of N 10. 50 N.
While for current account maintenance fees (CAMF) applies to current accounts ONLY with regard to customer-induced debit transactions to third parties and debit transfers / deposits to the customer’s account in another Bank.
The guide also noted that CAMF’s fees are negotiable subject to a maximum of N1 per mile.
Penalties for banks
The guide also specifies the penalties for banks that go against the guide’s precepts.
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It reads in part:
“Financial institutions should note that any breach of the provisions of this guide results in a penalty of N 2,000,000 per breach or as may be determined by the CBN from time to time.”
He also added that where it turns out that a bank has wrongly imposed a particular charge on its customers, the provision of section (i) will apply for each customer’s charge.
“Failure to follow the CBN directive with respect to any violation will result in an additional penalty of N 2,000,000 per day until the directive is followed or the CBN can determine from time to time.”
Banks are required to register each complaint received from their customers in the Consumer Complaints Management System (CCMS) and must generate a unique referral code for each complaint filed, which must be given to the customer.
Failure to log in and provide the code to the customer is a violation and is liable to a penalty of N 1,000,000 per violation. “
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In addition, a penalty of N 100,000 imposed on a financial institution that contravenes the provisions of Part 6C
CBN spends 58.61 billion naira to print 2.518 billion naira banknotes
In a related story, Legit.ng reported that the Central Bank of Nigeria revealed that it spent 58.61 billion naira to print naira banknotes for distribution in the country.
According to the CBN, 2.51 billion coins of banknotes of various denominations were printed to meet the foreign exchange needs of the economy.
The amount spent in 2020 on printing is a significant drop from what CBN spent in 2019, 2018.