Zenith Bank, 3 other banks rake N139.2bn from accounts maintenance fee in 2024
Zenith Bank Plc and three other deposit money banks in 2024 financial year generated N139.2 billion from customers’ accounts maintenance charge, about 46per cent increase over N95.2 billion reported in 2023.
The remaining three banks investigated by WESTERN POST are: Fidelity Bank Plc, United Bank for Africa Plc (UBA) and Guaranty Trust Holding Company Plc (GTCO).
As Zenith Bank in 2024 generated N72.9 billion from customers account maintenance fee, about 54.5 per cent increase over N47.2billion in 2023, UBA declared N30.5billion from account maintenance fee in 2024, representing an increase of 51.5 per cent when compared to N20.15 billion declared in 2023.
In addition, GTCO announced N22.81 billion maintenance fee in 2024, up by 18 per cent from N19.3billion in 2023, as Fidelity Bank posted N12.9 billion account maintenance fee in 2024, a growth of 52.04 per cent from N8.51billion in 2023.
The CBN had indirectly reintroduced Commission on Turnover fee as the Current Account Maintenance fee. The apex bank in 2013 commenced the phased reduction of the CoT, which terminated with the zero CoT charge this year.
But in a circular to banks recently, the CBN replaced the CoT with CAM but subject to a maximum of N1 per N1,000 mille.
The circular was titled, “Introduction of Negotiable Current Account Maintenance Fee Not Exceeding N1/mille.
It stated, “The revised guide to bank charges which came into effect on April 1, 2013 provides for a phased elimination of the 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 fee in addition to the reduced COT rate, which in effect amounted to double coincidence of charges.
It stated, “The CBN is not oblivious of the impact of declining crude oil prices, operation of Treasury Single Account, and other market turbulence on the viability and stability of the banking system.
“In furtherance of the mandate to promote and safeguard a sound financial system in Nigeria, banks are by this circular reminded that the 2016 Zero COT regime as jointly agreed during the 311th Bankers Committee meeting of February 12, 2013 has come into effect. In the interest of stability of the banking system, a Negotiable Current Account Maintenance Fee not exceeding N1 per mille may be charged in respect of all customer-induced debit transactions. Please ensure strict compliance.”
