Business
CBN Recovers N8.6bn Excess Bank Charges
The Central Bank of Nigeria last Monday said it had recovered N8.6 billion as excess charges fraudulently collected from customers by Deposit Money Banks.
The amount was recovered between May 29, 2012, when the Consumer Protection Department was created to protect the interest of consumers, and March 31 this year.
The Deputy Director, Consumer Protection Department, CBN, Mrs. Umma Dutse, made the disclosure during a chat with journalists in Abuja.
She said within the period, the central bank had received about 2,800 complaints bearing on excess charges, conversion and frauds, adding that some of the banks had been given the mandatory N2m fine.
The department was created with a view to promoting consumer confidence in the banking industry. Its role also includes advocacy, enlightenment, education and promotion of awareness among consumers in the industry.
Dutse said, “So far, the department have received and treated over 2,800 complaints from consumers against Deposit Money Banks as at the end of the first quarter of 2013.
“We have also been able to recover more than N8.6bn in favour of various consumers. The figures that I have just mentioned exclude complaints that have to do with Automated Teller Machines and electronic-related complaints, and also complaints from other financial institutions like microfinance institutions and Primary Mortgage Institutions. They are just complaints against Deposit Money Banks.”
She also said, “We have had cause to sanction some banks for breach of regulatory violation the normal N2m; and another thing is that the banks are compelled by the regulation to indicate in their annual financial statements all these breaches.
“So, I don’t think banks would want their shareholders to be seeing all these statistics that they are not consumer-friendly. I am sure with these, we will see great changes very soon.”
The disclosure came barely a week after the Bankers’ Committee of the CBN revealed its plan to investigate the excessive charges imposed on customers by Deposit Money Banks.
Bank’s customers had in recent times complained about fresh and arbitrary charges imposed on them by the DMBs.
Although only few banks had announced publicly their plans to introduce new charges, investigation by our correspondent revealed that some of them had introduced the charges secretly.
For instance, First Bank of Nigeria Limited, Skye Bank Plc and Keystone Bank Limited recently introduced monthly maintenance fee on ATM cards, a move customers said was an indirect replacement of the scrapped N100 charge on ATM withdrawals.
Some banks were also said to charge as high as N50 for SMS to alert their customers of transactions on their accounts, far above the usual N4 that all mobile telecommunications providers charge for text messages.
Other arbitrary charges include N500 monthly maintenance fee for every current account, depending on the bank; and N5 inter-state commission on every N1,000 transferred into or withdrawn from savings accounts in a state different from where the savings account is opened or domiciled.
In some banks, customers forfeit their monthly interests when they withdraw more than three times in a month from a particular account.
But Dutse said the CBN would continue to ensure fair treatment as well as inculcate ethical practices among financial service providers in their relationship with consumers.
To achieve this, she said the bank would put in place a very strong monitoring and compliance scheme that would enable banks to stop arbitrary charges.
She said, “We are going to put a very strong monitoring and compliance scheme that is going to ensure that the banks do what they are supposed to do and I can assure you that with time, the banks will stop all these charges.
“All they need is to be monitored and to ensure that they are complying with regulation.”
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
