…Bank charges exploitative – Customers

…Excessive deductions discourage financial inclusion – Erhirhie

…Charges necessary to offset operational expenses – Banker

A growing number of bank customers in Nigeria have voiced concerns over multiple and excessive charges on their transactions by commercial banks. BENJAMIN SAMSON reports on how the development is threatening the country’s financial inclusion drive of the government and what should be done to halt it.

Nigerians at home and abroad are lamenting their experiences in the hands of commercial banks, who they accuse of exploitative tendencies. Their concerns range from excessive deductions in bank charges for card maintenance and electronic payments to double deductions of stipulated charges.

Unending charges

Our correspondent gathered that the Automated Teller Machine (ATM) withdrawal charge introduced by the Central Bank of Nigeria (CBN) is just one of many deductions that Nigerians face daily.

Most banks deduct between N50 and N100 monthly for account maintenance. Interbank transfers attract charges ranging from N10 to N50 per transaction. Customers are also charged between N6 and N15 per SMS alert on transactions, while using a bank’s short service code incurs a charge of N6.95.

Additionally, a N50 deduction applies to transfers above N10, 000, while ATM card replacements attract fees ranging from N1, 000 to N2, 000. Some of these charges also include a 7.5 per cent Value Added Tax, further increasing deductions.

Nigerians groan

Speaking with this correspondent, a bank customer, Mrs. Grace Ajaka, who described the idea of deducting from customers’ accounts as exploitative, said that she could not fathom why customers had to lose their money for choosing to save in banks.

She said, “From SMS alert charges to charges on automated teller machines and online transfers, to account maintenance charges and other charges that I don’t understand, all to make abnormal profits from customers’ accounts.

“Saving gives one a way out of the uncertainties of life and provides you with an opportunity to enjoy a quality life. But this is being defeated by continuous deductions of customers’ money kept in the bank. At times, one is charged for unsolicited messages received.

“All these unreasonable charges should stop. Every customer by right should know why any amount is being deducted from his/her accounts. The current administration should please look into this.”

Another bank customer, a student, Ocheneyi Oisi, said that it was frustrating that his bank deducted from his monthly pocket money, adding that he could not fathom why he had to lose his money for choosing to save in banks.

 “Why should banks who encourage people to save money be deducting the money saved? For me, as a student, these unreasonable charges are insane. How do you want me to survive? I’m considering closing my account and God help them. They put me through trouble when I want to close it, that is when they will know the agony they have been putting me through. Some of my friends are having similar experiences and are also ready to close down their accounts. We keep money in banks for safety but I don’t think it is secure any longer,” he said.

Likewise, a tiller, Mr. Olusola Lasisi, said, “The risk of keeping money in the shop or in the house is the reason I go to the bank. Otherwise, there is nothing they offer that is spectacular. I get monthly deductions by way of account maintenance charge. Then, they send another notification that they have deducted VAT on account maintenance charge.

“Please, what is it that they are maintaining in my account? Does my money require any maintenance? I just don’t understand. I used to ignore the amounts deducted, but I have recently developed interest in knowing what happens to my account. Apart from the maintenance charges, they also deduct SMS alert charges and others that I can’t remember very well. When I confronted them recently, they said it was because I was withdrawing more than three times from my account.”

Diaspora Nigerians too

Nigerians in the Diaspora have also taken to social media to narrate their experiences. A UK-based Nigerian medical doctor, Harvey Olufunmilayo @Harvey, lamented the state of banks in Nigeria in comparison with banks in foreign countries.