Research by Nairametrics; an online medium has revealed that Nigeria’s tier-1 banks — comprising of First Bank Plc, UBA, Guaranty Trust Bank, Access Bank, and Zenith Bank (FUGAZ) generated a total of N18.4 billion from bank maintenance charges in Q1 2020.
This sum is 17.12% more than N15.6 billion that was generated by the five banks during the corresponding period in 2019.
Zenith Bank Plc topped the chart with N5.7 billion, followed by Access Bank Plc, N3.9 billion, and Guaranty Trust Bank Plc with N3.3 billion.
First Bank Plc and United Bank for Africa Plc come in fourth and fifth positions with N3.1 billion and N2.3 billion.
Recall that according to a directive by the Central Bank of Nigeria, CBN on bank charges, Nigerian banks are allowed to charge their customers a “negotiable” N1 per mille {per thousand}. What this means is that banks can charge N1 per N1000 debit transactions on current accounts. Banks’ account maintenance charges come in the form of COT (i.e., Commission on Turnover) which is a charge levied on customer withdrawals by their banks. In Nigeria, these charges are mainly applicable to current accounts.
“Current Account Maintenance Fee (CAMF): Applicable to current accounts ONLY in respect of customer-induced debit transactions to third parties and debit transfers/lodgments to the customer’s account in another bank. Note that CAMF is not applicable to Savings Accounts,” said part of the CBN directive issued and signed by Kevin N Amugo, Director, Financial Policy and Regulation Department of the apex bank.
Banks’ earnings from account maintenance charges, though low when compared to other revenue streams, still make up a significant portion of their non-interest income.
Recall that banks’ customers in Nigeria are subjected to arbitrary deductions which have left them aggrieved.
