FBN Holdings, FCMB, 4 others rake in N17.71bn maintaining customer’s current account
FBN Holdings Plc, FCMB group Plc and four other banks generated N17.71billion for maintaining customers’ current account in the first half (H1) of year 2022.
This is an increase of 24per cent from N14.27billion generated by these six banks in prior first six months of 2021.
The other banks are; Wema Bank Plc, Unity Bank Plc, Sterling Bank Plc and Union Bank of Nigeria Plc.
Westernpost gathered that FCMB Group reported 53.05 per cent increase in account maintenance to N3.32billion in H1 2022 from N2.17billion in H1 2021, while FBN Holdings reported N9.1billion account maintenance in H1 2022 from N7.93billion reported in H1 2021.
Wema Bank reported N1.29billion from its account maintenance, representing an increase of 36 per cent from N943million in H1 2021, while Unity Bank reported 12.45 per cent decline in its account maintenance to the tune of N744.86million in H1 2022 from N850.8million in H1 2021.
In addition, Union Bank of Nigeria announced N1.85billion in current account maintenance in H1 2022 from N1.35billion in H1 2021, while Sterling Bank closed H1 2022 at N1.4billion, representing an increase of 35per cent from N1.03billion in H1 2021.
The issue of current account maintenance fee in the banking sector over the years remained controversial as stakeholders demanded its total removal as a means to increase financial inclusion.
The Senate had raised concern over current account maintenance fee, stressing that banks are overcharging customers. The Central Bank of Nigeria (CBN), had in 2013, commenced phased reduction of Commission on Turnover (CoT) which terminated with zero CoT charge.
The CBN, in a circular by the Director, Financial Policy & Regulation Department, Mr. Kevin Amugo, had replaced the CoT with CAM, but subject to maximum of N1 per N1,000/mille.
The circular was titled; “Introduction of Negotiable CAM fee Not Exceeding N1/Mille.
It stated: “The Revised Guide to Bank Charges (RGBC) which came into effect on April 1, 2013 provides for a phased elimination of COT charges in the Nigerian banking Industry. Under the Guidelines, a zero COT regime was to come into effect from January 2016.”
The CBN noted that while the gradual phase out was being observed, some banks continued to charge Account Maintenance Fees in addition to the reduced COT rate, which in effect amounted to double coincidence of charges.
The apex bank in 2017 had revised the card maintenance charges in the new guide which was released from N100 annually to N50 monthly. This means every debit or credit card holder will pay N600 annually as against the N100 being paid previously.
The new Guide to Bank Charges stipulates that banks charge N50 monthly as card maintenance fee on naira debit and credit cards, while foreign currency denominated debit and credit cards would be charged $20 or its equivalent on an annual basis.
Charges for new hardware token and for replacement was increased from N2,500 to N3,500, while one time soft token is to attract a SMS charge of N4 compared to N20 that was being charged by some banks.
It however left the rate for acquiring new debit and credit card, renewal or replacement of the cards at a one off charge of N1,000, while not-on-us, which is withdrawal from other banks Automated Teller Machines (ATM), would attract a charge of N65 after the third withdrawal within a month.
