E-Financial
Customers Bleed Under Burden of Charges as Banks Post N933Bn Profit
12 commercial banks had jointly pulled in N933.16 billion in profits and made N216.52 billion from charges on electronic transactions, as customers continue to complain of excessive fees that they are being charged in 2020, despite the pandemic and the downturn in economic activities.
According to Leadership, the banks are FBN Holdings, Access Bank, United Bank for Africa, Wema Bank, Sterling Bank, Zenith Bank, Guaranty Trust Bank, Stanbic IBTC, Ecobank, Fidelity Bank, Union Bank and FCMB had also seen an increase of 2.3 per cent in the revenue from fees and commission last year.
In total, they made N825.23 billion last year from fees and commission compared to N806.87 billion made in 2019 and to bank customers.
Fee and commission income of banks include account servicing fees, investment management and other fiduciary activity fees, sales commission, placement fees and syndication fees, revenue from electronic banking transactions, card maintenance fees and others are recognised as the related services are performed.
For many bank customers who spoke with Leadership about stamp duty charges, account maintenance charges, card charges as well as SMS alert charges which are the most complained about.
Many of them were of the view that the charges ought to be reviewed downwards further.
Whilst some were of the view that though some banks charge them unnecessarily, the charges are still reasonable.
The general consensus was however against the stamp duty charge, as all those whose opinion were sampled said there is no reasonable excuse for it other than to generate money for the government.
Aisha Ahmad, deputy governor, Financial System Stability, CBN, had mentioned that efforts are being put in place to lower the cost of deploying services by banks through many services initiatives.
According to her, a cut in bank charges had been one of the factors being canvassed for the country to be able to achieve its financial inclusion goals of the country as the CBN plans to achieve a financial inclusion target of 95 per cent by 2024.
In December 2019, the Central Bank of Nigeria had issued a revised guide on bank charges which became effective on January 1, 2020.
The guide had made some major cuts in fees that banks charge customers, one of such is the reduction in electronic transactions.
According to the guide, electronic transfers of N5,000 and below will have a N10 transactions cost plus VAT and transfers of above N5000 but below N50,000 now attract N25 charges plus VAT, while transfers above N50,000 attracts N50 charge plus VAT.
The charges on electronic transfers had been cut from N50 which most banks were charging.
As against the N65 previously charged by banks after third withdrawals on remote- on-us ATM transactions, the CBN had insisted that bank do not charge above N35 per withdrawal.
However customers complain that they are still charged N65 and some banks make the charge on every remote-on-us withdrawal, irrespective of if it is the first or second in the month.
Also, maintenance charges on cards was cut from N600 spread through the year to N200, a N400 shave off from what card holders would have to pay banks on an annually.
Also maintenance charge for foreign currency card holders was also cut down to $10 or its equivalent from the previous charge of $20 yearly.
Other major changes in the charges include removal of Card Maintenance Fee (CAMF) on all cards linked to current accounts.
Other reductions include Advance Payment Guarantee (APG) which was pegged at maximum of one per cent of the APG value in the first year and 0.5 per cent for subsequent years on contingent liabilities.
The guideline also stipulates an interest rate minimum of 30 per cent of monetary Policy Rate (MPR), the latest guide also stipulated that a one-off charge of N1,000 be applied to the issuance of cards, irrespective of card type (regular or premium) compared to N2,000 that was being charged by some banks. The same one-off charge of N1,000 applies for the replacement of debit cards at the customer’s instance for lost or damaged cards.
According to the guide, there will be no more charges for reactivation or closure of accounts such as savings, current and domiciliary accounts while status enquiry at the request of the customer (like confirmation letter, letter of non-indebtedness and reference letter) will now attract a fee of N500 per request.
On Current Account Maintenance Fee (CAMF), the Guide expressly stated that this would be applicable only to current accounts in respect of customer-induced debit transactions to third parties and debit transfers/lodgments to the customer’s account in another bank. It emphasized that CAMF is not applicable to Savings Accounts.
As the 2019 Finance Bill became effective in February 2020, banks were required to deduct N50 stamp duty due on every transaction, from customers account.
The Bill which took effect in February last year stipulates that the N50 stamp duty charge would be levied on electronic payments above N10,000 as against payment above N1,000 which had previously been proposed.
The stamp duty charge is deducted on every transaction that is N10,000 and above irrespective of the account type, savings or current and then remitted to the Treasury Single Account resident with the CBN.
The N50 charge had been the source of squabble between the Federal Inland Revenue service and the Nigeria Postal Service last year.
Many banks had immediately begun deducting N50 stamp duty from all transactions above N10,000 made from bank accounts including savings, current and corporate accounts in the country in compliance with the 2020 Finance Bill.
In April last year, customers of Access Bank had attacked the bank on social media after it compiled and deducted three months’ worth of stamp duty charge at once.
After trending for more than four days on most social media platform the bank had tried restoring its image by offering to refund customers and pick up the stamp duty fees.
A female nurse, Uche Pius speaking with Leadership said “I don’t understand the bank charges, at times if you decide to transfer money on your mobile phone the bank charges suppose to be N10 but you will be seeing N100 as bank charges and there is no alert that the money was removed or anything.
“I think the bank charges need to be looked into. It is like there is nobody regulating it, they (the banks) just remove charges because they know nobody is going to the bank to complain about N50 or N20 it will just look ridiculous do they just keep doing it over time and nobody talks about it. It needs to be regulated and there should be an alert for it. It needs to be regulated.”
For Obinna Ani, a software engineer, his grouse is with the withdrawal charges as well as card and account maintenance charge.
According to him, banks charge more than they are supposed to and complaining does not do anything to rectify it.
“They said after eight withdrawals N65 will be deducted but at the end of the month instead of seeing N65 you will be seeing N300 or more than that as bank charges or liquidation and it can be deducted like three times in a month, at times even without using the ATM they still deduct money calling it maintenance or liquidation fee and it happens every month.
“I had to withdrawal all my money in that account. Unlike what we were told growing up that money in savings account appreciate, these days, money kept in savings account depreciate. A friend of mine who had like N100,000 in his account before he left the country came back four years later to meet an empty account. They were just deducting charges on an account that was not even in use.
A writer, Ngozi Stanley-Obi whilst noting that banks are businesses and need to make profit opined that some of the charges are unnecessary. Ifeanyi Chukwu, a videographer and editor, said on a monthly basis, his bank account take a hit from several charges.
“I have a savings and a current account. Charges on the savings are OK, but the charges on the current account are too much. With the volume of transactions I do, I get charged not less than N10,000 monthly. The charges are mostly stamp duty charges, which is from the government and SMS alert.”
In line with passion and aspiration of the National Insurance Commission (NAICOM) to achieve financial inclusion among Nigerians especially Nigerian women, Leadway Assurance, has partnered with Wafira Ntaba Limited a marketing firm to launch a bespoken insurance policy for Nigerian women.
The product, Leadway Plan B Insurance policy, comes in simplified and affordable packages for as low as N26,000 per quarter, broadening financial inclusion and income protection for women-led small to medium-sized enterprises and lifestyle protection for women across different social strata in Nigeria.
Speaking at the media launch of the product, Leadway ‘s Director Sales, Retail and Partnership, Kike Fischer, shed light on the market approach for the Plan B product, saying “one uniqueness of the Plan B product is in its single-wide coverage from risks and perils related to auto insurance, healthcare, personal accident, fire, burglary, life insurance and education cutting across its different product packages – SME, Corporate and Premier packages.”
Also speaking, the visioner behind the Plan B Insurance for Nigerian women, Ayona Aguilera Trimnell shared the inspiration behind the products saying, “Plan B is an idea that has been in development for 10 years.
“As I began exploring insurance products aimed at women in other countries, I recognised the need for an insurance product that promotes financial inclusion in Nigeria, specifically for women. I believed we could create something that addresses their unique concerns.
Women need to understand how insurance can alleviate their worries and the benefits of being insured. I have personally enjoyed the advantages of insurance for over fifteen years, and I believe other women should have the opportunity to experience the same benefits.”
She said both partners could simplify the benefits of the plan B insurance product to help even the uneducated, understand and be convinced to secure their future by becoming a policyholder.
According to her, it has been proven and tested that women too buy insurance, but more women need to be aware and get insured.
On the market approach for the Plan B product, she said she was confident that these products would help women of all classes in Nigeria create and protect wealth, recover from economic challenges, pursue their purposes, and lead their families with peace of mind.
Sage Grey Finance Limited has joined forces with the Bank of Industry to provide accessible and affordable financing solutions for Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.
This partnership, announced in Lagos, aligns with the Federal Government’s MSMEs Fund and aims to bridge the $236 billion funding gap faced by small businesses, fostering economic growth and job creation.
Eligible MSMEs can access loans of up to ₦5 million at a competitive 9% annual interest rate, with loan processing completed within five working days.
The initiative also includes SME advisory services to equip businesses with tools for sustainable growth.
Executive Director Jumo Atiba emphasized the critical role of MSMEs in national development, highlighting the partnership’s potential to stimulate entrepreneurship and unlock grassroots economic potential.
This collaboration reflects Sage Grey Finance’s commitment to financial inclusion and sustainable development.
The partnership builds on Sage Grey’s history of impactful initiatives, including a $200 million gas processing plant project and youth empowerment programs.
By addressing the challenges of financial exclusion, this collaboration is set to drive inclusive economic progress across Nigeria.
It has not been a pleasant week for thousands of Nigerians who have again fallen for another money scam.
According to DUBAWA, a West African independent verification and fact-checking project, several persons on various social media platforms have begun to count their losses as CBEX, a popular digital asset trading platform, reportedly wiped out over N1.3 trillion from Nigerian investors’ accounts.
The platform collapsed after funds disappeared from users’ wallets, withdrawals were postponed, and communication channels were locked.
Taiwo Owolabi, a security analyst, recently released an analysis showing how investors’ funds were diverted through funnel wallets and finally into a central wallet, which now holds a total of $857 million in USDT.
The security expert concluded that CBEX was just another Ponzi scheme.
When CBEX promised a mouth-watering 100 per cent return on crypto investments in 30 days, many Nigerians rushed to invest just like they did with the defunct MMM.
However, despite the crash, CBEX has asked some investors to pay $100 and $200 verification fees to access partial withdrawals.
Now that the chips are down, it’s time to ask: “How did we not see this coming?”
Below are four red flags about CBEX that investors ignored.
- No regulatory approval
CBEX operated without registration or approval from the Securities and Exchange Commission (SEC) or the Central Bank of Nigeria.
Still, many Nigerians invested, assuming legitimacy because the platform looked flashy. This has become a pattern, as in previous cases where Nigerians got duped, the platforms were unregistered.
SEC has since warned Nigerians against investing in unregistered online forex and digital asset platforms, saying that operating such businesses without registration is now illegal under the new Investment and Securities Act (ISA).
Lesson: Always verify a platform’s regulatory status before putting your money in.
- Anonymous founders
CBEX’s website and Application did not list identifiable owners or executives. To gain credibility, CBEX masqueraded as a crypto platform, talking about “blockchain,” “trading bots,” and “AI-powered systems.” However, it had no verifiable trades or links to legitimate crypto exchanges. It used tech jargon to mislead its users.
Lesson: Transparency is a minimum requirement. If you don’t know who runs it, don’t trust it.
- Unrealistic returns on investment, withdrawal issues
While there is no ideal return on investments (ROI), excessively high ROIs or ones that appear too good to be true are usually a call for caution.
CBEX promised investors returns of up to 100 per cent in 30 days. That looks like a classic Ponzi red flag.
As seen in the past, these kinds of returns are unsustainable, but they remain effective bait that can appeal to anyone’s greed.
At first, CBEX worked. Users were getting paid even though Owolabi claimed the platform initially used one investor’s money to pay another until it could not.
Just before the crash, many users reported delays in withdrawing their funds. CBEX blamed this on “system upgrades” and “network issues,” which is a tactic common with failing schemes.
Lesson: High, guaranteed returns are a red flag, and consistent withdrawal delays indicate that the system is drying up. That’s usually when the exit strategy begins.
- Influencer endorsements and peer pressure
The Fear Of Missing Out (FOMO) does not respect age, especially when influencers, friends, and families are involved. However, the misuse of trust through misinformation is common in fraud schemes.
CBEX’s biggest marketing weapon was social media hype and word-of-mouth pressure. The platform relied heavily on trust networks.
From WhatsApp statuses to Facebook pages and TikTok videos, CBEX grew viral through a coordinated network of testimonials. People shared real and fake proof of payment screenshots and emotional success stories.
When friends and family members innocently vouched for it, people ignored other red flags and pumped money into the scheme.
Lesson: Social proof is not due diligence. Always investigate platforms independently, even if people you trust are involved.
Conclusion
CBEX’s collapse is not new; unfortunately, it may not be the last. DUBAWA urges investors to adopt a fact-checking mindset when approached with financial opportunities. Scams thrive on ignorance and trust. Our best defence is verification, not hope.
DUBAWA is a West African independent verification and fact-checking project, initiated by the Centre for Journalism Innovation and Development (CJID) and supported by the most influential newsrooms and civic organisations in West Africa to help amplify the culture of truth in public discourse, public policy, and journalistic practice.
It has a presence in Nigeria, Ghana, Sierra Leone, Liberia and The Gambia.
OOUTH Commends IHS Nigeria, UNICEF for Life-Saving Oxygen Plant Donation
Google Launches 2025 AI Startups Accelerator Program for African Innovators
MoMo PSB Launches Refer & Win Promo: Free Airtime or Data for Life Awaits Nigerians
Reps Panel Demands N182bn Refund from Remita Over TSA Discrepancies
DRIF25 Brings Together 1,000 Delegates in Lusaka
We’re Confident in the Super Eagles – Karl Toriola
FG to Harmonise Fiscal Data Across MDAs
SEC Declares War on Capital Market Fraudsters
EFCC Arrests 133 @ Ponzi Scheme Training Academy
FG, UK FCDO, and Ghana Partner to Launch Sankore
General News3 days agoWorld Bank Announces $800m Support for Nigeria’s CCT Initiative
Telecom2 days agoBanks, Telcos Mull New Billing Plans for USSD Airtime Payments
E-Financial3 days agoFour Red Flags Nigerians Ignored until CBEX Crashed- DUBAWA
E-Business2 days agoNIPOST in Intensive Care, Needs Reforms Need to – Kekemeke
E-Financial2 days agoLeadway Partners Firm to Launch Retail Insurance Product for Women
Telecom3 days agoHow Starlink Took over Africa’s Largest Internet Market
- General News3 days ago
MIT MBA Students Explore Digital Innovation at MTN Nigeria
News2 days agoDG NITDA Urges Foreign Investors to Tap into Nigeria’s Digital Future