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Tag: charges

  • Banks’ excess charges

    Banks’ excess charges

    •Time to go beyond refunds

    The disclosure by the bankers professional body – the Chartered Institute of Bankers of Nigeria (CIBN) that it had caused a refund of not less than N22.98 billion and $16.9 million excess bank charges to petitioners and bank customers since its inception in 2001, although revealing, is unlikely to shock Nigerians. It is merely a window into the depth of the rot that has plagued and continues to plague a sector whose primary purpose is to help drive the economy.

    According to CIBN President, Prof Segun Ajibola, the body treated 1,889 petitions/cases with total claims of N320.4billion and $415million, of which 1,766 were resolved.  In other words, the refunds represent the proven excess bank charges by various banking institutions. We hope the outstanding complaints will equally be dealt with.

    We commend the CIBN for standing up for professionalism and pushing for appropriate restitutions on behalf of those cheated by the industry. Unfortunately, while most Nigerians can claim to be familiar with the role of the institute when it comes to enforcing the Code of Conduct among all cadres of employees in the banking industry, the same cannot be said of its role as a financial ombudsman with a mandate to adjudicate cases or petitions against banks on unethical practices and excess charges. In the likelihood of the number of petitions filed being only a tip of the iceberg, given the abysmal level of financial literacy in the country, we urge the body to do more to promote this aspect of its mandate to avail more Nigerians of avenues for redress, particularly where they have reasons to believe that they have been short-changed.

    On the whole, it must be admitted that the issue of excess bank charges has become an industry-wide challenge. Nothing appears exempt: ordinary cash transactions at the Automated Teller Machines (ATMs) are programmed to extract multiple charges that are hard to comprehend; there are charges for transaction notifications, for cheque books, and sundry charges – known only to the charging bank and often without prior notifications.

    Not even big corporations are spared of arbitrary charges –the bigger the volume of transactions the more the likelihood that the charges will take time to detect or resolve. In all, bank customers are reduced to a hapless, disempowered lot in an industry where they are supposed to be king. What makes it particularly confounding is that the same bank customers that are often denied access to credit; or when they are availed, at cut-throat interest rates, are the same victims of these numerous invisible charges.

    The CIBN has done well in seeking to rein in members who run afoul of the ethics of the profession. It has an additional duty to educate Nigerians on their rights and the avenues available for redress. It should also be time for stakeholders – the Central Bank of Nigeria (CBN), the Bankers Committee and the CIBN – to work together to address a problem that is increasingly becoming endemic.

    We recognise that the greater aspect of the challenge is regulatory. To the extent that the CBN has the bounden duty to ensure that the guidelines governing the operations of the financial services sector are well publicised, and also to ensure that they are strictly observed, the duty must come with the knowledge of sanctions in the event of infractions.  For, while the CIBN is right to move against its members found to have given their profession a bad name, there ought to be in equal measure, penalties from the regulator, for willful violations of the law.

    Above all, it would be a good idea for banks, under the direction of the CBN, to set up help desks to deal with such complaints.

  • Saraki should defend charges against him, says Fed Govt

    Saraki should defend charges against him, says Fed Govt

      •CCT reserves ruling 

    The prosecution in the alleged false assets declaration trial of Senate President Bukola Saraki has challenged him to defend himself against the charges pending against him.

    Led by Rotimi Jacobs (SAN), the prosecution urged the Code of Conduct Tribunal (CCT) to reject a no-case submission made by Saraki and order him to enter defence in the case.

    He said the prosecution hadled credible evidence through its witnesses.

    Jacobs spoke in Abuja yesterday at the resumption of proceedings in Saraki’s trial before the CCT.

    Saraki is being tried on a16-count charge of false assets declaration and other related offences.

    Adopting the prosecution’s written response to Saraki’s written submission in support of his no-case submission, Jacobs argued that the prosecution has made out a “serious prima facie case against the defendant (Saraki)”.

    He urged the tribunal to analyse and juxtapose the various asset declaration forms submitted by the defendant to reveal the falsehoods in them.

    Jacobs said:”Our response to the no-case submission is dated June 2, 2017 and filed the same day.

    “One method your lordship should adopt to show that there is serious prima facie case against the defendant is to look at Exhibits 6 and 26, which are assets declarations made by the defendant after the investigation of this case.

    “My lordships will see that the defendant listed all the annexed properties and stated that they were acquired in 92 and 99 and, now.

    “If my lord juxtaposes them with Exhibits 1 to 5, you will find that some of the properties he claimed acquired in 1999, 2002, and 2003, were not declared.”

    Jacobs also contended that the defendant had “misconstrued” Paragraph 1, Schedule 5 of the Constitution, by claiming that a public officer was not under obligation to declare properties bought in companies’ names.

    “To construe the constitution like that will defeat the essence of the CCT and the fight against corruption in Nigeria,” Jacobs said.

    Jacobs also faulted Saraki’s contention that allegations contained in the petitions tendered by the prosecution as exhibits, do not relate to him.

    Jacobs noted that Saraki’s name was mentioned in all the petitions.

    He added: “In his (Saraki’s) address, he (Agabi) said the petitions had nothing to do with the defendant, although his name is mentioned.

    “Prosecution does not depend on petition. Without a petition, a person can be prosecuted,” he said.

    On the defence’s argument that non-disclosure does not constitute an offence, Jacobs argued that: “We have shown in paragraphs 4.25 to 4.27 that up till now, they (the defence)  have not told the tribunal the ingredients of the offence. Failure to disclose an asset amounts to false declaration, which is an offence.”

    On the defence contention that the prosecution failed to call certain witnesses, which it had listed, Jacobs said: “They said we ought to call 200 witnesses and they listed them. They brought it up as a new issue, and started re-adjusting their argument. This cannot be done.”

    He added: “At this stage, care must be taken about what my lord can do. They were inviting your Lordship to give an opinion on the witnesses and evaluate their evidence.

    “The Supreme Court has said your lordship cannot do that at this stage.  At this stage, your lordship cannot express opinion on the evidence led until they defence give their own evidence.

    “The Supreme Court warned that the ruling on a no-case submission must be kept brief. It is permitted to just say there is case to answer.

    “The Supreme Court said where a lengthy ruling was delivered, an observation would be made on the facts and the prosecution would be right to appeal on the grounds that the judge is bias,” Jacobs said.

    The lead defence lawyer, Kanu Agabi (SAN), while adopting the defence written submission, argued that the petitions, on which the charges were founded, have nothing to do with his client.

    He further argued that the charges, particularly counts 1, 2, 6, 9,10, 11, 12, 13, 14 and 16 disclosed no valid offences.

    “There is inconsistency in the charges.I urge your lordship to hold that that is not an offence,” Agabi said.

    He further argued that only an authorised person could declare the statement of a public officer to be false.

    Agabi argued that the failure of the prosecution to disclose the name of the said authorised persons in the charge rendered it invalid.

    He also said two of the witnesses called by the prosecution – Samuel Madojemu (an official of the Code of Conduct Bureau) and Michael Wetkas (an operative of the Economic and Financial Crimes Commission) only gave hearsay testimony as evidence.

    Agabi urged the tribunal to take note of the defence’s list of witnesses, containing names of more witnesses, but which it failed to call before closing its case.

    He urged the tribunal to uphold his Saraki’s no-case submission and discharge him on the ground that the prosecution has failed to prove its case with credible evidence linking the defendant with the alleged offences.

    The tribunal has reserved its ruling and will informed parties when it is ready for delivery.

  • Furore over new bank charges

    Furore over new bank charges

    There are mixed feelings over the new bank charges on cash deposits and withdrawals by the apex bank with many lauding the policy regime as appropriate and others arguing that it may further discourage financial inclusion. Bukola Aroloye in this report examines the pros and cons

    Bank customers who are used to hauling cash around had better have a rethink as they are bound to pay so much to enjoy that luxury.

    That’s exactly the import of the directive issued to banks by the Central Bank of Nigeria (CBN) last February, whose implementation began effectively on April 1,2017, precisely over three weeks ago.

    Memo announcing the new mandate

    TThe CBN had on February 23rd, 2017, announced the reintroduction of charges on cash deposits and withdrawals in banks, which would take effect at different dates in different parts of the country.

    In a circular announcing the charges, Mr. Dipo Fatokun, Director, Banking and Payment System Department, CBN said: “Charges for cash deposit by individuals are as follows: Less than N500,000, zero charge; from N500,000 to N1 million, 1.5 per cent; from N1 million to N5 million, two per cent charge; above N5million, 3 per cent charge.

    “Charges for cash withdrawal by individuals are as follows: Less than N500,000, zero charge; From N500,000 to N1 million, two per cent; from N1 million to N5 million, 3 per cent charge; above N5 million, 7.5 per cent charge.

    “Charges for corporate cash deposit are as follow: Less than N3 million, zero charge; from N3 million to N10 million, two per cent; from N10 million to N40 million, three per cent; above N40 million, five per cent.

    “Charges for corporate cash withdrawal are as follows: Less than N3 million, zero charge; from N3 million to N10 million, five per cent; from N10 million to N40 million, 7.5 per cent; above N40 million, 10 per cent.

    “The new charges would take effect from April 1 2017, in the existing cashless states (Lagos, Ogun, Kano, Abia, Anambra, Rivers and the FCT).

    “The policy shall be implemented with the charges taking effect on May 1, 2017 in the following states: Bauchi, Bayelsa, Delta, Enugu, Gombe, Imo, Kaduna, Ondo, Osun and Plateau. “The policy shall be implemented with the charges taking effect on August 1, 2017 in the following states: Edo, Katsina, Jigawa, Niger, Oyo, Adamawa, Akwa Ibom, Ebonyi, Taraba and Nasarawa.

    “The policy shall be implemented with the charges taking effect on October 1, 2017 in the following states: Borno, Benue, Ekiti, Cross River, Kebbi, Kogi, Kwara, Yobe, Sokoto and Zamfara.

    According to the CBN, income generated from the processing fees charges above the allowable cash transaction limits shall be shared between the apex bank and “the banks in the ratio of 40:60.”

    The CBN has always argued that the cash policy was introduced for a number of key reasons, including: To drive development and modernisation of the country’s payment system in line with its vision 2020 goal of being amongst the top 20 economies by the year 2020.

    The latest announcement comes despite the directive for immediate stoppage of all charges on deposits by the CBN Governor, Mr. Godwin Emefiele, in June, 2014.

    Review of cashless policy

    The cashless policy was introduced by the CBN in 2012 to reduce the amount of cash circulating in the economy, and encourage more electronic-based transactions.

    Features of the policy include N500, 000 cash deposit and withdrawal limit  for individual bank customers, with three per cent charge on transactions above the limit; N3million deposit and withdrawal limit for corporate bank customers, with five per cent for cash transactions above the limit.

    Resounding support for policy

    Speaking with a cross-section of economic and financial experts who understand the workings of the policy they argued that the initiative was ideal for the nation, especially considering the propensity of some unscrupulous individuals to abuse the system.

    In the view of Johnson Chukwu, Managing Director /CEO, Cowry Asset Management Limited, “The imposition of penalties on cash withdrawals and deposits above N500,000.00 are meant to discourage people for continuing to transact their businesses with cash.”

    Giving further insight, he said: “The discrimination in the penal charge where deposits above N500,000.00 attract only 1.5% charge while withdrawals of amounts exceeding N500,000.00 is penalised by a charge of 7.5% must have be designed with the intention not to deter completely depositing of such funds so that they are not left outside the banking industry.”

    Expatiating, he said: “I believe that without either sanctions or incentives it will be difficult to persuade Nigerians to change their habit of transactions businesses with cash hence the imposition of penalties on cash withdrawals and deposits. Nevertheless, I will also suggest that the approach to encouraging the adoption of the cashless policy should include incentives (carrots) and not just sanctions (sticks). That way, the Central Bank will be able to attract more willing adopters of the policy.”

    The imposition of penalties on withdrawals and deposits, he further reiterated, will certainly compel people to start using alternative means of payment such as cheques, POS terminals, on-lines, etc.

    All these alternatives, he maintained, are part of the cashless policy initiatives of the CBN.

    To him, “Any policy that compels people to use banking facilities such as the penalties imposed on cash withdrawals and deposits is certainly to the advantage of financial inclusion as it will encourage more people to open and operate bank accounts. Secondly, the policy will help to improve the effectiveness of monetary policies as it will reduce the amount of cash outside the banking system.”

    Echoing similar sentiments, Sola Oni, Managing Director. Sofunix Investment and Communications Limited, said: “The question of justification of the charges rolled out as penalties for exceeding cash withdrawal limit by the Central Bank of Nigeria (CBN) is relative. If the charges are lower, they still constitute penalties. The philosophy is to discourage mass cash transaction and leverage on the use of credit or electronic card.”

    The policy, he stressed, will encourage the use of digital transfer of money and thereby boost cashless model of transaction nationwide.

    He was however quick to admit that: “Against the backdrop that many Nigerians are not computer literate, it may pose a threat to financial inclusion as digital money transfer and its allied methods require a fair knowledge of computer.

    In the short run, it may discourage financial inclusion but in the long run it would enhance it.”

    Waxing philosophical, Oni said: “There is no policy that can favour everyone. The key issue is the benefits to the overall economy.”

    While making allusion to the early days of the introduction of mobile phone, he said: “Today, many people that are not used to mobile phone by virtue of lack of education are now embracing it as a means of communication. Cashless economy reduces crime, it is faster and quite convenient. But It also has its drawbacks such as  identity theft among others.”

    Welter of criticism against the policy

    Not a few people are convinced that the new policy regime by the CBN is a well thought out initiative.

    One of those who have expressed serious misgivings against the policy is the president of the National Association of Nigerian Traders, Barrister Ken Ukaoha.

    Raising some posers, he queried: “What has changed between the last time the CBN suspended this move and now.”

    Ukaoha pointed out that banks traditionally charge commissions on transactions (COTs) on lodgments into and withdrawals from current accounts.

    Nigerian banks, he said, have with CBN’s tacit approval, been imposing on their customers similar COTs for withdrawals from savings accounts, “cash handling charges” for withdrawals of N1m and above, and other inexplicable and unjust charges.

    “So, what ‘cost of cash management’ does the CBN refer to?” he asked.

    He said the CBN’s drive to make the Nigerian economy cashless must be considered within the prism  of what foundations exist in Nigeria.

    “What is the level of literacy and acquaintance with information communication technology (ICT) among Nigerians? How many Nigerians can use electronic banking services? How many Igbo traders, Fulani herdsmen, market women, farmers, etc are knowledgeable in ICT?”

    Mrs. Uju Ogubunka, a financial and management consultant is also on the same page with Ukuoha.

    She faulted the CBN for approving the new charges for deposit money banks, saying they were not set up to impose such charges on their customers.

    “Some of us feel strongly that it is not right for banks to charge their customers,” Mrs. Ogubunka, who is also the President, Bank Customers Association of Nigeria, BCAN, said.

    She added that it is wrong to charge bank customers on deposits or withdrawals, especially with CBN drive to achieve financial inclusion.

    The BCAN boss, who is a former Registrar, Chartered Institute of Bankers of Nigeria, CIBN, said charging customers for deposits or withdrawals would actually encourage more customers not to embrace the banking culture.

    “With multiple charges, bank customers would prefer to withdraw their money and keep at home for other activities,” she said.

    Ade Olumide,  a businessman in Lagos said the timing of the policy was wrong considering the economic situation in the country.

    “The new policy is uncalled for with the present economy of the country. We are doing the right thing at the wrong time. I am a businessman and my type of business is SME and we borrow huge money from banks to carry out our  activities, this policy will have adverse effect on us,” Olumide lamented.

    Also speaking on the development, Mrs Ebere Oluchi said it would discourage customers from seeking bank facilities.

    “Personally, I believe those charges are not right, especially when CBN is talking about financial inclusion and financial literacy.

    “The importance of finance inclusion is to bring more customers into the saving culture; with reintroduction of charges, it might discourage depositors and those seeking other banking facilities,” she said.

    “It will be easy to control illicit funds that go to kidnappers, especially. To me, it is a good development,” she said.

    Amodu Adeyemi in Ikorodu said the policy was a welcome development, adding that it would reduce movement of cash.

    “It will help to check unnecessary withdrawals, people will only withdraw money when it is necessary.”

    Mrs Yemi Adenuga ex banker the reintroduction of cashless charges, which commenced April 1, 2017, in Lagos and six states including the Federal Capital Territory (FCT) is coming too early in the life of the policy.

    “The time frame to adjust to the change is too short. Awareness should be made highlighting the benefits of the policy,”she said.

    CBN makes volte face on policy

    In a related development, the CBN at the weekend suspended its earlier directive on the implementation of cashless policy.

    In a circular released by the apex bank, it instructed banks to revert to old charges and refund customers who had been debited.

    The circular signed by Dipo Fatokun, director, banking and payments system department, CBN said the existing policy before the announcement of the new policy shall remain in place in Lagos, Ogun, Kano, Abia, Anambra, Rivers and Abuja.

    “You will recall that a directive was issued on the nationwide implementation of the cashless policy vide our circulars with reference numbers BPS/DIR/GEN/CIR/04/001 dated February 21 and BPS/DIR/GEN/CIR/04/002 dated March 16,” the circular read.

    “Please note that the new withdrawal and deposit processing fee charges above the threshold, as contained in the circulars referenced above, are hereby suspended until further notice. The position of the policy shall now revert to the status quo ante.”

    “The new policy already applied effective April 1, 2017 as contained in the circulars in reference above should be reversed and the old charges be applied. All necessary refunds should be made accordingly.”

  • CBN suspends charges on large withdrawals

    CBN suspends charges on large withdrawals

    The Central Bank of Nigeria (CBN) has directed Deposit Money Banks to suspend charges on over-the-counter or ATM withdrawals of above N500,000 or deposit of same amount.

    The apex bank’s Director, Banking and Payments System Department, Mr Dipo Fatokun, in a circular dated April 20, 2017, said all the charges introduced in February and meant to take effect from April 1, 2017, have been dropped.

    “For further clarification, the existing policy prior to the announcement of the new policy as earlier implemented in Lagos, Ogun, Kano, Abia, Anambra, Rivers states and the FCT shall remain.

    “For the avoidance of doubt, the old charges to be reverted to are as follows: Individual charges on withdrawals or lodgment limit is now three per cent.

    “Corporate accounts will be charged five per cent for withdrawal or lodgment of over N3 million cash.

    “Henceforth, nothing will be charged as processing fees for lodgments,” he said.

    Fatokun directed banks to make all necessary refunds to customers with immediate effect.

    The News Agency of Nigeria (NAN) recalls that the CBN in February announced its plan to extend the cashless policy to all the remaining states of the federation by Oct. 1, 2017, to enhance the efficiency of payment systems.

    This policy, which received a lot of backlash from market analysts, was to commence in phases within the country with effect from April 1, 2017.

    The policy introduced charges on the cumulative cash withdrawals or deposits per customer per day, irrespective of the channels used either over-the-counter or ATM.

    The charges for individuals was two per cent for withdrawals above N500,000 to N5 million, 1.5 per cent on deposits for N500,000 to N1 million, and three per cent on deposits above N1 million to N5 million.

    Also, individual withdrawals above N5 million was to incur a 7.5 per cent charge.

    Similarly, corporate accounts were also to incur a charge of two per cent on withdrawals, ranging from N3 million to N10 million, while withdrawals of that amount would be at a five per cent charge.

    Over-the-counter deposit of above N10 million to N40 million was to attract a three per cent charge and 7.5 per cent on withdrawals, while above N40 million attracts five per cent on deposits and 10 per cent on withdrawals.

  • IPOB chief Kanu to face five charges

    IPOB chief Kanu to face five charges

    •Court fixes March 20 for trial

    The trial of Indigenous Peoples of Biafra (IPOB) leader Nnamdi Kanu is to begin on March 20.

    He will be tried along with three others— Chidiebere Onwudiwe, Benjamin Madubugwu and an engineer,  David Nwawuisi.

    Justice Binta Murtala Nyako gave the defendants the opportunity to file another bail application but warned that they must be prepared for the trial.

    She struck out six of the charges. The remaining five were sustained

    Justice Nyako of the Federal High Court in Abuja, in a ruling, held that the six counts were not supported by the proof of evidence the prosecution submitted in court to support the charge it filed against Kanu and others.

    The ruling was on separate notices of objection filed by Kanu, Onwudiwe and Nwawuisi, challenging the validity of the six counts.

    Justice Nyako said the proof of evidence failed to disclose any prima facie case against the defendants in relation to the six counts.

    The six counts are 3, 5, 7, 9, 10 and 11 in which they were charged with managing unlawful organisation, intention to manufacture Improvised Explosive Devices (IED) to be used against some Nigerian security agents and alleged improper importation of a radio transmitter.

    Justice Nyako was of the view that the allegation in Count 3 relating to “managing of unlawful society punishable under section 63 of the Criminal Code Act” could not be substantiated by the proof of evidence.

    She said the proof of evidence failed to show that IPOB was indeed an unlawful organisation, noting that the prosecution failed to show that IPOB had been proscribed or that it was not registered either in Nigeria or London.

    The judge said the alleged, “improper importation of goods contrary to section 47(1) (a) (i) of the Customs and Excise Management Act” levelled against Kanu in Count 5 did not disclose the elements of the alleged offence bordering on the importation of a Radio Transmitter known as TRAM 50L.

    The judge held that the allegation in Count 7 accusing Madubugwu of “managing of unlawful society punishable under section 63 of the Criminal Code Act” by accepting and keeping a container housing the radio transmitter which he allegedly knew was to be used for Radio Biafra, also did not disclose any element of the alleged crime.

    She said count 9 in which Onwudiwe and Nwawuisi were charged with “conspiracy to commit treasonble felony contrary to Section 516 of the Criminal Code Act” did not disclose the elements of the alleged crime.

    Justice Nyako said the count failed to disclose which of the acts of installation of the transmitter on the MTN mast site at Ogui Road, near St. Michale Church, Enugu State, and the agreement on the payment of N150,000 was the act that constituted the offence of conspiracy to commit treasonable felony.

    The judge also struck out Count 10, which accused Nwawuisi of engaging in the “management of unlawful society punishable under section 63 of the Criminal Code Act”.

    The prosecution had accused Nwawuisi of the offence for allegedly permitting the installation of Radio Biafra transmitter on the MTN mast for the purpose of propagating the objective of IPOB after being paid the sum of N150,000 by Onwudiwe.

    Justice Nyako said the count could not stand because the proof that the IPOB was an unlawful society was not provided in the proof.

    The judge also struck out Count 11, which accused Onwudiwe of “knowingly committing an act preparatory to an act of terrorism” by allegedly “carrying out research for the purpose of identifying and gathering of improvised explosive device-making materials to be used gainst Nigerian security operatives carrying out their lawful duties”.

    The prosecution alleged in the count that Onwudiwe had by the act, committed an offence of “terrorism contrary to section 2(1)(a) of Terrorism (Prevention) Amendment Act 2011 as amended in 2013”.

    The judge agreed with the defence that since the offence only had to do with an intention to commit a particular act, it was the magistrate court that had the jurisdiction to entertain such charge.

    The judge sustained Counts 1, 2, 4, 6 and 8.

    They are, in count 1, charged with “conspiracy to commit treasonable felony contrary to Section 516 of the Criminal Code act” by conspiring among themselves to broadcast on Radio Biafra “for states in the South-East and South-South zones and other communities in Kogi and Benue states to secede from the Federal Republic of Nigeria with a view to constituting same into Republic of Biafra”.

    In count 2, Kanu is charged with treasonable felony by broadcasting in London between 2014 and 2015, calling for the secession of Republic of Biafra from Nigeria.

    Count 4 accused Kanu of “publication of defamatory matter contrary to section 375 of the Criminal Code Act” by referring to the then Maj-Gen. Muhammadu Buhari (retd) and now President of the Federal Republic of Nigeria as “a paedophile, a terrorist, an idiot, and an embodiment of evil” in a broadcast on Radio Biafra on April 28, 2015.

    Count 6 accused Kanu of “improper importation of goods contrary to section 47(2)(a) of the Customs and Excise Management Act” by allegedly concealing a radio transmitter in a container of used household items and declaring the transmitter as part of the used household items.

    Count 8 which accused Madubugwu of being in possession of one Emerald Magnum Pump Action Gun with serial number TS 870 – 113 – 0046 and one Delta Magnum Pump Action Gun with serial number 501 as well as 41 cartridges/ammunition without lawful authority or licence, was also sustained.

    Madubugwu was said to been caught with the firearms at his house in Ubulusuzor in Ihiala Local Government Area of Anambra State in October 2015.

  • AON: multiple charges, unfair taxes killing domestic airlines

    Domestic airlines under the aegis of Airline Operators of Nigeria (AON) yesterday lamented what they described as “multiple and unfair taxes” inflicted on indigenous carriers.

    The operators said such taxes were stifling their airlines and might soon kill them.

    AON Chairman Captain Nogie Meggison, who spoke at the weekend, alleged that domestic airlines had become cheap targets for government agencies.

    Such development, he said, has put additional burden on operators, thus providing the reason why 27 airlines have died in the last 25 years. If domestic airlines must survive, Meggison canvassed harmonisation of the charges by aviation agencies into a one-stop payment shop.

    He canvassed a 10-year tax holiday for domestic carriers.

    The AON Chairman appealed to the government to urgently review taxes, including Ticket Sales Charge (TSC), en-route navigational charges, Value Added Tax (VAT), passenger service charge, charter sales charge, aircraft inspection fees, simulator inspection fees, landing charges, parking charges, terminal navigational charge, fuel surcharge, airport space rent, electricity charges and apron pass, ramp access charges and others to enable them in business.

    Meggison wondered why government would charge domestic carriers VAT and other modes of transportation are excluded.

    The Civil Aviation Act of 2006 (Part 18.12.3) requires that the NCAA regulates civil aviation and the charges imposed by civil aviation authorities and agencies.

    Such charges, Meggison said ought to be approved and reviewed periodically in consultation with stakeholders.

    The NCAA policy, Megginson said is not being adhered to as airlines are saddled with charges without any form of consultation whatsoever.

  • EFCC charges against me unconstitutional, SAN tells court 

    EFCC charges against me unconstitutional, SAN tells court 

    Senior Advocate of Nigeria, (SAN), Dr. Joseph Nwobike, Monday told a Lagos State High Court that the five-count charge filed against him by the Economic and Financial Crimes Commission (EFCC) was unconstitutional.

    Nwobike is standing trial before Justice Raliat Adebiyi on charges bordering on an attempt to pervert the course of justice and offering gratification to a public official.

    Monday, defence counsel, Mr. O. Akoni, informed the court that the charges against Nwobike were unconstitutional and he intended to make a no case submission.

    Denying a claim by prosecution counsel, Rotimi Oyedepo, that the defence had filed “a harvest of motions”, Akoni told the court that his client looked forward to a speedy trial.

    He said: “We have another application but we want it taken after the prosecution has closed its case so that we can start trial without delay. We intend to make a no case submission.

    “I want us to move faster. We’re saying among other things that this charge is unconstitutional.”

    Opposing the defendant’s application, the prosecution said it was defective.

    “The applicant’s application violates S.158 of the Administration of Criminal Justice Law, if read together with Section 212.”

    He argued that if such an application is found to be incurably defective, the court would have no option but to strike it out, “Instead of keeping it in abeyance.”

    In her ruling, Justice Adebiyi upheld the defendant’s submission.

    “The defendant’s application will not prejudice the prosecution’s case,” the judge ruled.

    The case was adjourned till April 21 and 22 for the prosecution to open its case.

    On April 9, Nwobike was arraigned by the anti-graft agency on allegations that he gave the sums of N750, 000 and N300, 000 to Justice Mohammed Nasir Yunusa of the Federal High Court to influence the judge to pervert the course of justice.

    He denied the charges and was granted bail on self recognizance.

  • Consumer Day: Bank charges too many

    Consumer Day: Bank charges too many

    Though the theme of this year’s World Consumer Rights Day (WCRD) was Antibiotic Resistance with hashtag #AntibioticsOfftheMenu, in Nigeria it was about how to protect bank customers against spurious charges, ADEDEJI ADEMIGBUJI reports.

    After the March 1 #NoBankingDay protest, the consumer movement community has again urged banks to reverse excessive and multiple charges on customers’ account.

    Stakeholders, who spoke at a Consumer Day Symposium three days ago, organised by Brand Journalists Association of Nigeria (BJAN) to mark the World Consumer Rights Day, took a detour from the World Consumer Rights Day (WCRD) theme: Antibiotic Resistance with hashtag #AntibioticsOfftheMenu, to address one of the worst bank customers’ experiences.

    The forum raised concerns over cost automated teller machine (ATM) withdrawals, debit card issuance and renewals fee of N1000, ATM management charges of N100 yearly, new Stamp Duty charge of N50 on every credit of over N1000, online transfer charges, reintroduction of cost of transaction (CoT) under a new guise of Monthly Account Maintenance Charge of N1/mille.

    They also frowned at other levies by default the yoke of which were considered too heavy  on the frail necks of the customers without the chance to negotiate. Stakeholders are of the opinion that if these trend continues, it will erode the gains recorded by previous banking reforms,  discourage the informal sector from keeping their money with banks and weaken the banking sector on the long-run.

    The Chairman of TPT, a public relations agency, Mr. Tokunbo Modupe, who was the key speaker at the symposium said both corporate and individual banking customers are worried by the current trends of multiple and excessive charges.

    He said while last year alone, CBN investigated over 6,000 complaints from banks’ customers and compelled the banks ‘to refund over N6.2 billion to affected customers’, adding that the apex bank however failed to state the total cash claimed by customers, whether or not the affected customers were satisfied or not with the cash refunded and whether the culprit banks were sanctioned.

    He said such information would have assisted in appreciating the convergence or divergence of what was claimed and what was refunded, the feelings of the claimant customers about the final outcome of their complaints, and CBN’s ‘resolve’ to continuously enforce the provisions of the Revised Guide to Bank Charges.

    “Of course, there have been many complaints by customers of banks about unauthorised and illegal charges. Fleecing of customers has become the rule rather than the exception. The excesses come under different descriptions such as management fees, processing fees, interest charges, CoT, card maintenance fees, account maintenance fees, deposit, withdrawal and transfer, SMS alert fees, and ATM fees.

    Even the newly introduced stamp duty charge has become another coduit through which they fleece customers through overcharging. In one transaction, some banks send more than two SMS alerts and charge for each.

    The 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 has of necessity built distrust in the banks or the banking industry. This has adverse implications for CBN’s programme of financial inclusion as well as the volume of money outside the banking system and effectiveness of monetary policy, he said.

    Also, the President of CAFON, Mrs. Sola Salako, who rallied consumer advocacy groups penultimate week for a NoBankingDay protest, said banking customers should expect more shocks as CBN is a about to release banking charges for the next three years.

    She said from the draft copy published on CBN website, the annual card maintenance fee has now been reintroduced as monthly fee.

    “I plead to Nigerians to take time out to study the draft and starta conversation about it. This is the time for all of us to stand up against these,” she said.

    However, the President, Bank Customers Association of Nigeria, Dr. Uju Ogubunka, said banks should not be blamed for excessive and multiple charges. While saying he is opposed to spurious, he said customers should be blamed because they don’t take their time to read the guides to banking. “The problem is with customers. Most people don’t know there is a guide to bank charges but they all know when they are overcharged. Most customers don’t know their brand manager,” he said.

    Modupe said both the CBN and the Consumer Protection Council (CPC) have failed to protect the banking public. “The government agency set up for the protection of consumers seems not to be interested in the plight of the bank customers. Should we then call on the EFCC (Economic and Financial Crimes Commission)to spare us some time from chasing politicians and help investigate and prosecute officials of banks on this 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?”

  • NERC warns DISCOs against over-charging customers

    The National Electricity Distribution Commission (NERC), Friday, warned the eleven power distribution companies (DisCOs) against exploiting customers, who do not have meters, just as electricity supply to the grid ramps up at 4, 387 megawatts (Mw).

    The agency said it would be wrong for DisCOs to capitalise on the low electricity supply in the country to over -charge customers, who on account of their inability to get meters are put on estimated billing.

    In a statement signed by NERC’s Head Public Affairs Department, Dr Usman Abba Arabi, said billings for unmetered customers should be based on their consumption level.

    He said: “The reduction in power supply when it lasted affects both metered and unmetered customers. For metered customers the drop in their consumption will be captured by their meter.

    For unmetered customers it is imperative that estimated bills during this period are reflective of their actual consumption. At this juncture, it is imperative that bills for unmetered customers are accurate as much as possible. It should under no circumstance be arbitrarily inflated.’’

    Arabi said unmetered and estimated customers have the right and option to pay current estimated electricity billing, in the event no concern was raised   in their estimated electricity bills.

    He urged electricity distribution companies to charge customers in line with the provisions of the Billing Estimation Methodology Regulations, 2012, provided by the government.

    It would be recalled that the peak generation level that notched epoch 5,070 megawatts few weeks ago suddenly nosedived due to inadequate gas supply on the main gas pipeline supplying many of the power stations.

    This was on account of gas supply shortage due to inability to evacuate condensates and oil produced with the gas because the main oil export pipeline out of Forcados was vandalized two weeks ago.

    However, with the successful repair work on the damaged facility, the system is now ramping up as it attains 4, 387 megawatts peak generation as at Friday.

  • NECA advises firms to negotiate with banks over charges

    NECA advises firms to negotiate with banks over charges

    The Nigeria Employers’ Consultative Association (NECA) has advised firms to negotiate current account maintenance fees with their  banks.

    NECA expressed concern about the likelihood of some organised businesses losing revenue to commercial banks through what it called “unnegotiated” current account maintenance fee, in contravention of the directive of the Central Bank of Nigeria (CBN) on maintenance fee.

    According to NECA, the CBN had released a Revised Guide to Bank Charges on March 27, 2013 in which it expressed resolve to gradually phase out Commission on Turnover (COT) until it achieves a zero charge this year.

    However, NECA explained that in a sudden twist to the policy thrust, the CBN granted a negotiable current account maintenance fee not exceeding N1 to the banks on January 29, this year

    Speaking in Lagos, the NECA Director-General, Mr. Olusegun Oshinowo said: “We have noted that many companies are yet to explore the window of negotiating the current account maintenance fee with their banks. The maximum rate of N1 is the ceiling and it is expected that clients would negotiate with their banks acceptable rates below the ceiling.”

    He urged companies to approach their banks and insist on negotiating the rate downward from one naira (N1), adding that, “this is in line with the guideline of the CBN.”