Zenith leads as seven commercial banks withdraw over N75 billion from customer accounts as maintenance fees

  • Account maintenance fees are levied on all debit transactions initiated by the customer, and the bank collects these fees at the time of the transaction
  • The investigation revealed that more than seven commercial banks collected more than N75 billion in customer account management fees.
  • The account maintenance fee tax has been the subject of intense discussion for businessmen and Nigerians over the years

Eight commercial banks generated around N75.16 billion from maintaining customer accounts in the 12 months of 2021, analysis of annual bank results submitted to the Nigerian Exchange found.

The amount in 2021 represents a 12% increase from the 53.8 billion naira the banks surveyed charge their customers for account maintenance.

The banks featured in this report are United Bank of Africa (UBA), Zenith Bank, First City Monument Bank (FCMB), Guaranty Trust Holding Company Plc (GTCO), Unity Bank, Sterling, Fidelity and Wema bank.

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Zenith leads as seven commercial banks withdraw over N75 billion from customer accounts as maintenance fees
Bank customers attempt to make withdrawalsCredit: Adeosun

Among the aforementioned banks, Zenith Bank recorded the highest debit for account maintenance; 31.3 billion naira of customers.

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GTCO comes next with customers paying N16.6 billion for account maintenance in the 12 months of 2021.

UBA earned N11.44 billion from customer maintenance fees, while FCMB raked in N4.8 billion.

Sterling Bank collected 1.34 billion naira for account maintenance fees, while FCMB removed 2.2 billion naira during the six-month period.

Customers of Fidelity and Sterling banks paid N4.1 billion and N2.9 billion respectively for maintaining their accounts.

Wema Bank, Unity Bank earned N2.1 billion and N1.6 billion respectively from their clients for managing their accounts.

Zenith leads as seven commercial banks withdraw over N75 billion from customer accounts as maintenance fees
Source: original

The expert speaks

Commenting on the development, the Chairman of the Bank Customers Association of Nigeria (BCAN), Dr. Uju Ogubunka, attributed the growth in account maintenance fees to the increase in banking customer transactions.

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According to him, the increase in account maintenance fees shows that more Nigerians are transacting more, Vanguard reports.

He stated:

“Several factors can increase account fees. Like I said, it’s a function of a transaction. If transactions increase, banks will have a reason to charge these fees. Remember that the name is account maintenance and there is a rate stipulated by regulators that should be charged.

”So these rates once they are maintained and increase, it means that customers are transacting more than anyone would have thought.

“The only issue you might have is if it can be proven that the basis on which these fees are collected by banks is not in line with the principles and regulatory requirements that guide the collection of account maintenance fees. “

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CBN Guidelines on Account Maintenance Fees

According to the Central Bank of Nigeria 2020 guidelines, Account maintenance fees (CAMF) are applicable to current accounts only with regard to debit transactions induced by the customer towards third parties and debit transfers/deposits to the customer’s account in another bank.

CBN added that the CAMF is not applicable to savings accounts. The rate is negotiable up to a maximum of N1 per mile.

10 commercial banks spend over 400 billion naira on staff salaries

In a similar report, Legit.ng revealed why working in banking is a dream for many Nigerian graduates.

The leaked report that around 10 commercial banks spend on salaries and wages of their employees exceeded N400 billion in 2021.

The amount entered in the report only covers salaries and wages and does not include other staff costs or pension contributions which constitute staff costs.

Source: Legit.ng

About Ruben V. Albin

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