Okechukwu Unegbu, a renowned financial expert, has urged the Central Bank of Nigeria (CBN) to take immediate action to address the growing issue of excessive service charges levied by Deposit Money Banks (DMBs).
Unegbu, who previously served as the president of the Chattered Institute of Bankers of Nigeria (CIBN), made this appeal during a recent interview with the News Agency of Nigeria in Abuja. According to him, banks no longer exhibit empathy towards their customers as they did in the past.
“What we are witnessing now is a situation where DMBs impose numerous and unexplained charges on their customers without delivering any corresponding service,” Unegbu stated. “Most bank officials have little to no knowledge about banking, and even the heads of these banks are often complicit.”
Unegbu further advised Folashodun Shonubi, the acting CBN governor, to carefully examine the relationship between DMBs and their customers and take full responsibility for regulating their activities. He emphasized that the primary purpose of any bank should be to serve its customers without expecting any special favors in return.
In the past, the only charges applied by banks were the Commission on Turnover (COT) and interest payments on loans, both of which were strictly regulated by the CBN. However, Unegbu noted that in recent times banks have found innovative ways to generate additional revenue, often at the expense of their customers. He also revealed that the CIBN has previously addressed this issue, urging banks to conduct their operations ethically and prioritize the needs of their customers.
The News Agency of Nigeria has reported numerous complaints from Nigerians who have been subjected to multiple, unexplained fees deducted from their bank accounts. However, according to investigations, there are specific bank charges that have been approved by the CBN.
For instance, Electronic Funds Transfer attracts a fee of N50 for transactions above N50,000, N25 for transactions between N5,000 and N50,000, and N10 for transactions below N5,000. In the case of ATM withdrawals from other banks’ ATMs, the charge is N35 for the third withdrawal within the same month.
Card Maintenance Fees for Naira Debit/Credit Cards linked to savings accounts are capped at a maximum of N50 per quarter. For foreign currency-denominated debit/credit cards, the charge is set at $10. Hardware token charges are subject to cost recovery, with a maximum fee of N2,500.
The CBN has also established standardized charges for card issuance, replacements, renewals, and various other services such as Intra-Scheme Money Transfers and Bill Payment via e-channels.
The apex bank has warned that any financial institution found to be in violation of the approved charges will be liable to pay a penalty of N2 million per infraction, or as determined by the CBN.
To address any complaints or concerns regarding bank charges, the CBN has encouraged bank customers to contact them via email at cpd@cbn.gov.ng.
In light of the growing discontent among Nigerians regarding exploitative bank charges, it is crucial for the CBN to take swift action and ensure that DMBs operate fairly and transparently. It is imperative for banks to prioritize their customers’ interests and deliver value without burdening them with excessive fees and charges. The CBN, as the regulatory authority, must actively enforce regulations to protect customers and restore trust in the banking sector.
