The chief regulator of commercial banks, the Central Bank of Nigeria [CBN] and the Consumer Protection Council [CPC] of Nigeria have been blamed for the various unauthorised deductions and fees levied bank consumers.
These unjustifiable and unwarranted deductions from consumer accounts and fees that commercial bank consumers are forced to pay, according to speakers at a symposium organised by the Brand Journalists Association of Nigeria [BJAN] to commemorate the World Consumer Rights Day [WCRD] is because the CBN and CPC have failed in their responsibility of protecting consumers.
At the one day event held at GRA, Ikeja, on March, 15th, the Keynote Speaker, Public Relations Guru, Mr. Adetokunbo Modupe, Chairman TPT International, said that “banks for reasons such as greed, moral and professional bankruptcy have often chosen to be the proverbial dogs eating the meat kept in their care.”
This action, said the PR consultant, has had adverse implications for CBN’s programme of financial inclusion as well as the volume of money outside the banking system and the effectiveness of monetary policy implementation.
Accusing the CBN of failing in its responsibility of protecting the banking public and the CPC of not showing interest in the plight of bank customers, Adetokunbo wondered if the “EFCC should intervene in the obvious financial infraction or should we go to church like we usually do to pray to God to save us from the evils of Nigerian banks.”
Speaking further, he said that there have been many complaints by bank customers of unauthorised and illegal charges, “such fleecing of the customers has become the rule than the exception.
“The excesses come under different descriptions such as management fees, processing fees, interest charges, commission on turnover, card maintenance fees, account maintenance fees, deposit, withdrawal and telephone alert fees, ATM fees. Even the recently introduced stamp duty charge has become another source through which they commenced overcharging their customers. In one transaction, some banks send more than two text message alerts and charge for each,” lamented the keynote speaker.
He thundered that “it is a regime of cheating that must be stopped” while he recalled that last year alone, “CBN investigated over 6,000 complaints from bank customers and compelled banks to refund the sum of over N6.2billion to affected customers.”
Sola Salako, President, Consumer Advocacy Foundation of Nigeria, regretted that the Nigeria bank system is not programmed to look out for consumers or to protect them despite the fact that we have a regulator.
Reacting to the new proposed CBN charges on bank consumers, “It shows that CBN is insensitive to the plight of consumers. Despite mounting consumer complaints on charges CBN is proposing more charges to be levied on the banking populace.
“Everywhere in the world, when you automate a system, it becomes cheaper but not so in the Nigeria banking industry,” added the CAFON president.
Speaking on the theme of the symposium, ‘Banking in Nigeria: Developments and Customer Challenges’, Mr. Goddie Ofose, BJAN national chairman, said it was chosen “as a result of the imbalance and accusation of consumer rights abuse against the players in the financial sector.”
The BJAN national chairman urged consumers to begin to make leaders accountable, especially the regulatory agencies whom he pointed out are regulating without any one regulating them.
“All of us should begin to work as campaigners against consumer right abuse,” advised Mr. Ofose while also stressing that “we should assist government by educating consumers on their rights and consumers too should always summon the courage to make complaints where and when necessary.”
Furthermore, he called on regulatory agencies to work together “for instance, through collaboration between CPC and CBN or NAFDAC and CPC a lot could be achieved to save Nigerian consumers.”
However, Mr. Uju. M. Ogubunka, the President, Bank Customers Association of Nigeria [BCAN], said the blame of the various abuses that the banking public are getting from banks should be passed to everyone and not just the regulatory agencies.
“The problem is not about banks but consumers. How many of us know our rights? Many consumers do not know there is even a guide to bank charges. We are to blamed for being ignorant.”
Cautioning people not to pass all bank customers woes on CBN and to refrain from making uninformed remarks on the issue he said “Banks may not have met all our needs but they are doing a lot. If other sectors in Nigeria can do half as what the banks are doing then we will have a better society.”
He urged consumers to seek for more knowledge “as self protection is the greatest protection one can give to himself.”
Noting the five new charges that the CBN is proposing to introduce, the president, BCAN, called on all consumers to familiarise themselves with the charges now and speak out concerning the charges.
“Every bank consumer has the opportunity to speak and voice their resentments about the charges before they are implemented. CBN made it open for consumers to react to them before a final decision is taken on them. It is our responsibility to advice CBN when it is not getting it right and encourage when is doing a great job.”
Meanwhile, CBN is proposing the introduction of five new charges on bank customers. These charges include a N50 charge on every cheque leaflet obtained and used at deposit money bank’s counters, A N100 per month maintenance charge on every debit [ATM] card. This is separate from the existing N65 charge after the 3rd withdrawal within the same month. If the card is not used in a month, N50 will be deducted.
The regulatory body is also proposing a N4,200 per month charge on foreign currency denominated cards as maintenance fee. It 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.
Also form M, which is predominantly used by manufacturers to import goods not on CBN prohibition list, is proposed to henceforth cost N1,000 in addition to maintenance fee on e-form platform in line with CBN directive.
