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CBN Proposes Skyrocketing New Bank Charges


central bank

Nigeria’s Central Bank is proposing a N50 charge on every cheque leaflet obtained and used at the deposit money bank’s counter.

This is different from the collection charge on cheques, which is also proposed to be “one percent of cheque value or Naira equivalent of US $10 whichever is lower”.

The apex bank is also proposing a N100-per-month charge on every debit card (your typical ATM card) – separate from the existing N65 charge after the third withdrawal within the same month.

In its draft on the “guide to charges for banks and other financial institutions in Nigeria”, CBN also proposed a N4,200-per-annum charge on foreign currency denominated cards as maintenance fee.

For naira dominated cards, a monthly maintenance fee of N100 was also proposed for every month a debit card is used (N1,200 per annum), and a N50 charge for other months when card is used or not (N600 per annum).

The proposal is coming only 13 days after Nigerians protested excessive bank charges, declaring a ‘No Banking Day’ on March 1, 2016.

For foreign exchange related transactions, where Form M or Form A is needed to request forex from CBN, charges that were hitherto not applicable have now been proposed.

The CBN is proposing a charge of a N100 on Form A, which is used by students to apply for forex on school fees, medical bills, and travel allowances.

Form M, which is predominantly used by manufacturers to import goods (not on the CBN prohibition list), is proposed to henceforth cost “N1,000 in addition to maintenance fee on e-Form platform in line with CBN directive”.

The central bank also added that Nigerians could send in their comments on the proposed charges, seeking clarification and notifying the bank on excluded financial institutions.

“The Central Bank of Nigeria is currently reviewing the extant Guide to Bank Charges, which came into effect on April 1, 2013,” the circular, signed by Kevin Amugo, director financial policy and regulation department, read.

“The review, which is in line with the philosophy of periodically ensuring that the provisions of the guide accord with current realities, also seek to address complaints from customers of financial services, requests for clarification on provision of the guide and absence of a tariff regime for other financial institutions in Nigeria.

“Kindly send hard copies of your comments by March 29, 2016 to the director, financial policy and regulation department with soft copies mailed to gbcreview@cbn.gov.ng.”

Currently deposit money banks currently charge an average of N1,500 for the issuance of a 50-page cheque book.

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