Business
Banks Begin Implementation Of Reduced Charges
Some banks have commenced the implementation of the reduced bank charges as instructed by the regulator, the Central Bank of Nigeria, with effect from January 2020.
While some banks have notified their customers of the reduction in the new charges, some others are yet to do so.
First Bank disclosed its compliance in a notice on reduced charges on its electronic banking channels to customers.
It stated, “Following the CBN’s revised guide to charges by banks, other financial and non-bank financial institutions, charges on our electronic banking channels have been reviewed downwards and would take effect from 1 January, 2020.”
Fidelity Bank Plc also stated in a notice to its customers that “in line with the Central Bank of Nigeria’s directive to implement provisions in the revised guide to bank charges, we wish to inform you about the reduction in charges for the following transactions effective January 01, 2020.”
In furtherance of its quest to make financial services more accessible and affordable to various stakeholders in the economy, the CBN recently reviewed downward most charges and fees for banking services as contained in the new guide to charges by banks, other financial, and non-bank financial institutions, with effect from January 1, 2020.
The Director, Corporate Communications at the CBN, Isaac Okorafor, explained some of the major highlights of the new guide on the bank charges to include the removal of card maintenance fee on all cards linked to current accounts.
He said it included a maximum of one naira per mille for customer-induced debit transactions to third parties and transfers or lodgements to the customers’ account in other bank on current accounts only, and a reduction in the amount payable for cash withdrawals from other banks’ Automated Teller Machines (remote-on-us) as well as from N65 to N35, after the third withdrawal within one month.
Other reductions are Advance Payment Guarantee, which was pegged at a maximum of one per cent of the APG value in the first year and 0.5 per cent for subsequent years on contingent liabilities.
On debit card charges, Okorafor stated that the new guide stipulated that a one-off charge of N1,000 applied to the issuance of cards, irrespective of card type (regular or premium).
The same one-off charge of N1,000 applied for the replacement of debit cards at the customer’s instance for lost or damaged cards.
He added that upon expiry of existing cards, customers were to pay the same one-off charge of N1,000 irrespective of card type. Conversely, no charge should be required for pre-paid card loading/unloading.
He explained that the current NIP charges applied to use of Unstructured Supplementary Service Data, purchase with cash-back would attract a charge of N100 per N20,000 subject to cumulative N60,000 daily withdrawal.
Also, for cards linked to savings account, the maintenance fee was reduced to a maximum of N50 per quarter from N50 per month, amounting to only N200 per annum instead of N600.
Okorafor said that there would be no more charges for reactivation or closure of accounts such as savings, current and domiciliary accounts.
Status enquiry at the request of the customer (like confirmation letter, letter of non-indebtedness and reference letter) would now attract a fee of N500 per request, he said.
On current account maintenance fee, he said the guide stated that this would be applicable only to current accounts in respect of customer-induced debit transactions to third parties and debit transfers and lodgements to the customer’s account in another bank.
According to him, it was not applicable to savings accounts.
The director said the CBN carried out the review of the guide, which also prescribed charges permissible for other financial institutions and non-bank financial institutions, in order to align with market developments.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.
-
Editorial2 days agoThat Oshiomhole’s Call On FG’s Road Projects
-
Education2 days ago
Environmental Education Remains Critical Tool To Address Environmental Challenges Says Experts
-
Education2 days ago
UNIPORT VC Receives Probe Report on Student Union Crisis
-
City Crime2 days agoTinubu Appoints Ex-Tide Staff Registrar Of Chartered Chemists
-
Oil & Energy2 days ago
NCDMB, BOI Unveil $100m Nigerian Content Equity Fund …Set To Invest $5m In Oil Firms
-
Business2 days ago
PTDF Committed To Tinubu’s Development Plan – CEO
-
Education2 days ago
IAUE Holds Pre-Resource Assessment Workshop for HODs and Deans Ahead of NUC Verification
-
Politics2 days ago
Yilwatda’s Birthday Outreach Demonstrates Leadership – Kefas